Debt. That’s what internet superstar Kim Dotcom believes will bring down the US Dollar. With an alleged $1 trillion added to the US government’s deficit each year, he might not be far wrong either. Kim Dotcom is an internet pioneer, famous for his innovation and passions for both gaming and cryptocurrency, Bitcoin specifically. According to Kim Dotcom’s Twitter feed:
“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 worldwide economic collapse. Shift your USD into Gold & Bitcoin asap before USD becomes toilet paper.”
“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%.”
-@KimDotcomWhat’s our take on this?The notion of a US Dollar crash causing a worldwide economic collapse is both worrying and frightening. We’d like to think that there are plenty of financial protections in place to prevent this from happening, but I guess in the world of economics there are a number of extraneous variables that mean total protection is impossible. As an absolute world power though, it seems unlikely that the United States don’t have control over these debts, though the figures presented by Kim do suggest otherwise.Indeed, this has been reinforced by an article by CCN, which states:
“While Dotcom is controversial, his warnings are perhaps not unfounded, given the fact that the federal deficit rose 20% in the last 10 months, according to a recent report from the Congressional Budget Office, as reported by The Hill. From Oct. 1 to July, spending surpassed revenue by $682 billion, which is $116 billion more than the same period for the prior fiscal year.”
“The expanding deficit has been driven by Pres. Trump’s tax cuts and a Congressional agreement to increase spending. Trump has claimed the tax cuts will lead to stronger economic growth, delivering more tax revenue and reducing the deficit. While the U.S. economy grew by 4.1% in the second quarter, economists have noted that more growth is needed to cut the deficit.”
See the full article for yourself, here. Should you put all your USD into Bitcoin and Gold, is USD toilet paper?US Dollars are not quite toilet paper just yet. Indeed, I wouldn’t recommend using them as toilet paper as its quite unhygienic and I would assume that it's an action of defacing a currency, which is illegal, so don’t! Moving all of your money into Bitcoin and Gold isn’t wise either. Whilst Bitcoin and Gold present differing investment opportunities, neither are guaranteed. Therefore, the best advice here is to continue to trade at your own rate.If you are worried about a collapse of the USD, do some further research. If you want to purchase Bitcoin and Gold, don’t do it because you’re worried about US debts, instead, do it because you want to make money and because you have done the research to justify your decision. Whilst Kim Dotcom is somewhat of an authoritative figure, perhaps a global economic crisis as a result of US debt is a little way off just yet, his points shouldn’t be disregarded though.