Kim Dotcom Urges Shift To Bitcoin

Controversial figure Kim Dotcom, the extradition-fighting founder of the now-defunct file-hosting website Megaupload told his 736,000 Twitter followers to buy crypto and gold.

Dotcom is fighting extradition by US authorities from New Zealand on fraud charges, money laundering and criminal copyright infringement. However, his conclusions about the state of the US economy are not uniquely his. According to a recent survey conducted by the National Association for Business Economics, 82% of economists surveyed predict a US recession beginning sometime after 2019.

Dotcom’s recent tweet-streak encourages moving into Bitcoin, alt-coins and gold and away from the US dollar which he believes will soon become worthless.

He says that a big crash in the US economy is absolutely certain and that with the impending US economic collapse, all fiat currencies will crash as well.

“Trust me. Buy crypto and gold. Your USD will become worthless. With US economic collapse all old money currencies will crash. Times will get tough. But you’ll be fine if you hedge some of your assets in preparation for the crash. The big crash is coming 100%.”

— Kim Dotcom (@KimDotcom) August 12, 2018

“Trump was handed an Empire on life support. No trade deal, no economic growth, no tariff or war can save this patient. Top economists around the world agree that US debt is unsustainable. There is no sugar coating this. US Empire is broke. Prepare for collapse. Gold and Bitcoin.”

— Kim Dotcom (@KimDotcom) August 9, 2018

Dotcom goes on to outline a shift in the balance of power from governments to citizens. His plan is simple:

“The plan:

Crypto to replace paper money

Blockchain to replace govt and bank control of money

Encryption and open source to replace Deep State spying

Decentralized social networks to replace Deep State networks

Truth to replace lies and deception

People get their power back

— Kim Dotcom (@KimDotcom) August 9, 2018

Desmond Lachman, macro-economist at the International Monetary Fund and on Wall Street, writes in a February 2018 op-ed for U.S. News & World Report:

“All the ingredients are in place for a catastrophic economic and financial market crisis. A key ingredient for a global economic crisis is asset price bubbles and credit risk mispricing. On that score, today’s financial market situation would appear to be very much more concerning than that on the eve of the September 2008 Lehman-bankruptcy. Whereas then, asset price bubbles were largely confined to the U.S. housing and credit markets, today, asset price bubbles are more pervasive being all too much in evidence around the globe.”

US economist and financial broker-dealer Peter Schiff said recently in Salon why he believes an economic collapse is likely. According to Schiff, “I think the attention is going to focus back to the US again. I think the U.S. is in worse shape than Europe. I think we’re in worse shape than Japan, not that Europe and Japan are not in trouble, they are. But I just think we’re in more trouble … There are a lot of bubbles. The bond market is a bubble. The stock market, housing market, the whole U.S. economy, really, is one gigantic bubble … We’re going to have to deal with a decline in the stock market, the bond market. We’re going to have to deal with a lot of defaults, [and] a lot of debtors are going to go broke. It’s going to be a painful process even if we bring it on ourselves. But if we wait for the crisis to happen on its own because it’s imposed on us by the world, it’s just going to be worse.”

Both Schiff and Dotcom believe that fiat currency is doomed; but Schiff is a critic while Dotcom is a fan. Schiff is in favor of cutting government spending and raising interest rates. Dotcom’s remedy is new and untested but because of that, it may be brilliant and successful: move away from government-backed fiat and build up a digital economy of borderless cryptocurrencies.

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