Kim Dotcom, renowned crypto investor and Internet entrepreneur, recently stated that the US economy is surely going to crash in the following years and that this cannot be stopped. In a Twitter statement, he declared that if the markets in the country keep deteriorating, crypto will start to be highly appealing for investors as a way to store value, together with investing in precious metals:
US Empire now pays half a trillion dollars in interest payments per year to service its debt. US debt increases by a trillion per year. It’s a death spiral that cannot be undone. Self-destruction and USD collapse are unavoidable. Get out of USD and US stocks. Buy gold & crypto.
Why Is Crypto Chosen?
What should be known is that the US economy has a clear impact on Europe and Asia. If the US stock markets suffer, as they do right now, the markets in Asia become more vulnerable to a crash. This means that if the economy will experience a huge crash by the year 2020, major financial institutions and economists predict that the effect will be drastic on real estate, financial markets and stocks in Asia.
Kim Dotcom mentioned a debt problem, which was also covered by government agencies and economists. The IMF (International Monetary Fund) said that the US needs to stop ignoring hose serious federal debt is. For instance, Jared Bernstein declared:
Even if you think that public debt just doesn’t matter to economic outcomes, the thing you have to admit is that when we hit a downturn, governments are less likely to take significant steps if the debt is as high as ours is now.
The US simply now has problems facilitating economic expansion and growth because of the debt that is in place.
Crypto Growth Rate
Kim Dotcom went on to say that cryptocurrency adoption is going to reach a point at which retailers, businesses and merchants will embrace the digital assets as a payment method. This is going to offer huge financial freedom and will drastically increase digital asset value. He stated:
Crypto is replacing fiat at an accelerating rate. It’s still early days but within 10 years you can pay all your bills, goods and services with crypto. No more bankers and politicians gambling with your money at the bullshit casino. Encryption + Crypto = Freedom.
Conclusions
What Kim Dotcom is saying is a concern that is shared by numerous economists and investors from all around the world. At the moment, US debt is at a really high level. The big problem is that US debt keeps increasing. On the other hand, even if there were some regulatory problems seen in the past few months, cryptocurrencies are constantly growing in value. The fact that they are decentralized means that if the US economy crashes, they will not be strongly impacted, similarly to precious metals.
Kim is practically saying the same thing crypto enthusiasts have been saying for a long time now: it is time to invest in crypto.
