Kim Dotcom urgently recommends to change dollars into bitcoins
Lately, we’ve seen a weakening of the national currency. For example, the Turkish Lira lost 40% of its value – this has led to increased demand for cash among the population.
The South African Rand has broken at least the last two years. Even the pound, the Euro, the Chinese yuan and the Japanese yen tend to decrease in market value.
Former CEO of Goldman Sachs, the founder of file-sharing service Megaupload argues that Fiat currency, including the dollar, are valuable only because they are under state control, and people see them as a primary means of payment. But it is also the weak point of Fiat money: any currency is tied to the financial system of any country – economic and political problems of the state will lead to the fall of the national currency.
Russia’s Finance Minister Anton Siluanov called for a reduction in investment in American dollars. This statement is commented on Kim Dotcom, the German-Finnish entrepreneur, developer, Creator of file-sharing site Megaupload. Dotcom draws attention to the US debt and I am sure that it will cause the collapse of the dollar. But if the country’s financial system will be destroyed, the currency will quickly lose value.
“The average amount of debt that is attributable to the standard American family – 845 000$. The unfunded liabilities of the US for government programs account for 938 000$ per taxpayer. You should not rely on the country’s economic growth, new loans taken to cover the principal debt, or an additional issue – the US debt default is inevitable,” says Kim Dotcom.
Dotcom believes that the U.S. will not be able to pay the debt, the amount of which increases every year by $1 trillion. Moreover, the developers are confident that the outstanding U.S. debt would not only destroy the state’s economy, but also cause the global financial crisis. In his opinion the falling dollar may lead to a complete collapse of Fiat currency. That’s why on his Twitter he calls to exchange dollars for bitcoin and gold, before it’s too late.
The opinion of the Dotcom reinforce facts and statistics. For example, Russia in relations with some countries to abandon the dollar in favor of euros. Of course, one should not expect a sharp rejection of the dollar as the means of inter-state payments. But if this trend continues, the probability of failure of the us financial system due to the presence of debt increases.
Confirm this forecast and the figures. So, defetsit US Federal budget increased by twenty percent over the past ten months. In addition, according to the report of the Congress, the difference between the expenses and income of the country increased: for almost a year, the United States “goes negative” at $682 billion. Some experts see the cause in the policy of trump, aimed at reducing taxes and rising costs.
But back to the tweet of Kim Dotcom and compare gold and bitcoin. Which of these assets it is better to convert dollars? Since 2009, bitcoin is the leading cryptocurrency and is positioned as gold 2.0 and is even considered more advanced version of this investment asset.
Some experts claim that gold loses bitcoin in terms of transportability and interchangeability. Besides, owning gold is easier to legally ban and confiscate the precious metal from the population. While cryptocurrencies such as bitcoin and Ethereum, are highly liquid, they can be quickly exchanged for any other currency and transfer anywhere in the world. All this makes bitcoin a promising investment tool and a convenient medium of exchange in the gradual weakening of the national currencies of some States.