Veteran entrepreneur Kim Dotcom, who has in the past created the successful file-sharing website Megaupload, has recently advised his over 734,000 Twitter followers to buy gold and cryptocurrencies like bitcoin, as the “USD will become worthless.”
Kim Dotcom’s advice seemingly comes as a hedging strategy against an upcoming economic crisis, one that he implies may be around the corner. Per his tweet, a “big crash is coming 100%.”
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
In previous tweets Dotcom explained his reasoning. In one, he cited Russia’s finance minister, who noted the country has reduced its investment in US assets, and considered the US dollar a “risky tool for payments.”
According to Dotcom, the “US debt burden has become unmanageable,” and the fiat currency is bound to crash. The entrepreneur added that the average debt per family in the United States is now at $845,000. He wrote:
The average unfunded liability in the US is now at 938000 USD per taxpayer. Anyone who thinks US debt can be solved with economic growth, new debt or printing more dollars is an idiot. US Empire will default.
Cryptocurrencies are known to thrive in times of economic uncertainty. As CryptoGlobe covered, Turkey’s economic woes saw various residents turn to cryptocurrencies to hedge against the lira’s falling value.
Venezuela’s financial crisis, which saw its inflation reach records levels, saw various cryptocurrency communities step in to help the country’s residents. While some projects targeted merchant adoption in the country, others donated funds to help people survive the government’s failures.
Kim Dotcom’s tweets come at a time in which bitcoin is seemingly starting to recover from a recent pullback. The flagship cryptocurrency recently climbed 3.5% to $6,300, defying bearish calls various analysts made after its price dipped below its 50-day moving average.
The entrepreneur has notably planned to launch his own cryptocurrency, aimed at content creators. It’s set to help content creators monetize their work, without relying on third parties.