Megaupload Founder Kim Dotcom Advises to Buy Gold and Bitcoin (BTC)
Megaupload Founder Kim Dotcom Advises to Buy Gold and Bitcoin Before USD 'Becomes Toilet Paper'
The notorious internet pirate and founder of Megaupload recently advised people to buy gold and Bitcoin as he believes the US dollar will soon become ‘toilet paper’ as the country’s debt is becoming a real concern.
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. http://usdebtclock.org Shift your USD into Gold & Bitcoin ASAP before USD becomes toilet paper.
This was the advice given to the public by longtime Bitcoin advocate Kim Dotcom. In his tweet, Kim is urging people to invest in assets like Gold and Bitcoin. This is because the U.S government is racking up loans worth $1 trillion annually with no intention to pay them back.
According to Kim, the debt will destroy the United States and this would subsequently lead to a global economic crisis.
He further added that Trump started his administration with an empire on life support and that the top economists in the world agree that the debt of the country isn’t sustainable.
Dotcom’s warning has an element of truth
Even though Kim Dotcom is recognized by many as a controversial figure, his warning isn’t totally wrong. A report from the Congressional Budget Office shows that the federal deficit rose 20% in the last 10 months.
The spending from October 1 to July was more than the revenue generated by $682 billion. This figure is $116 billion more than the same period for the prior fiscal year.
The increasing deficit can be attributed to President Trump’s tax cuts and a Congressional agreement to increase spending. Trump has always maintained that the tax cut will lead to stronger economic growth, delivering more tax revenue and decreasing the deficit.
Leading economists believe that a higher growth in the economy is needed to reduce the deficit despite the U.S economy growing by 4.1% in Q2 of 2018.
Deficit expected to rise
Contrary to expectation, the deficit is expected to rise to 793 billion at the end of the year and approach $1 trillion in 2019. Analysts predict that interest payments to service debt will eventually become the fastest rising yearly expenditure.
In the next three decades, servicing the debt will be higher than spending on defense and Social Security.
Twitterverse respond to Dotcom
Kim Dotcom’s post received a lot of response from tweeters. Most of the responders agreed with the point made by Dotcom, as they believe that the US Dollars is already worthless. Another tweeter suggested eliminating the Federal Reserve as a way to curb the impending problem.
Another tweeter claimed that the debt will be restructured. For now, a restoration of the manufacturing gap caused by the North American Free Trade Agreement will restore U.S. manufacturing and subsequently lead to a stronger economy.
Dotcom meanwhile has been fighting extradition to the U.S. from New Zealand. Six years ago, he was indicted by a U.S. grand jury over his file-sharing site, Megaupload.
This led to the closure of his site and the FBI raiding his home. He was accused of copyright infringement, money laundering, and racketeering.