For those who don’t know, Kim Dotcom is the man behind Megaupload, the file-sharing website involved in a massive internet piracy lawsuit. Recently, the high court in New Zealand, where Dotcom has been living, ruled that he can be extradited to the United States for sentencing.
In a post on Twitter, Dotcom has suggested that investment in Bitcoin would be a wise decision considering that the U.S. government is adding one trillion dollars in debt per year and a global financial crash is imminent.
In the post he also advises investing in gold before “USD becomes toilet paper.”
1 TRILLION DOLLARS in additional US Govt debt PER YEAR!
US spending is funded by lenders who will never get paid. US Empire will collapse followed by a world wide economic collapse. https://t.co/kdtB0GnewP
Shift your USD into Gold & Bitcoin asap before USD becomes toilet paper. https://t.co/a5UIuhJvUT
— Kim Dotcom (@KimDotcom) August 9, 2018
Spending in the U.S. over the past year has surpassed the previous years spending by $116 billion, creating a 20 percent increase in the federal deficit. While the economy has admittedly grown by over four percent, further growth would be needed to reduce the deficit.
President Trump hasn’t helped the situation by introducing tax cuts which he believed would lead to stronger economic growth but so far seem to have compounded the problem.
Recent sanctions by the U.S. in Turkey has caused an economic collapse in the country that could trigger a similar event in Spain, to whom Turkey owes a large debt. The knock on effect could have dire implications for the euro which in turn could further affect the dollar.
Despite the current bear market affecting the price of most cryptocurrencies, Dotcom might just be correct in his suggestions. With current financial uncertainty driven by middle-east conflict and struggling trade deals, another global financial crisis grows ever more likely.
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