Within the next two years, the US economy will collapse and with it, the dollar, according to internet entrepreneur and Bitcoin advocate Kim Dotcom.
The controversial German-Finnish businessman says this will happen because its government is adding $1 trillion to its debt every year and this has become so onerous, in his opinion, that the country will never be able to pay it back. He adds that the debt will create a massive global economic crisis.
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Dotcom suggests that in light of this grim economic future, now is the time to buy cryptocurrency.
“Many economists agree,” he says. “The US economy and US dollar will collapse under the enormous US debt burden. The pyramid game is coming to an end. Crypto and precious metals will go up when everything else falls. I think it’s going to happen in the next two years.”
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The growth of the US deficit
The US deficit has risen by 20% in the last 10 months, reveals a recent US Congressional Budget Office report. Spending between 1st October and July of this year has exceeded revenue by $682 billion, an increase of $116 billion compared to the same period for the previous fiscal year.
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And although the US economy grew 4.1% in the second quarter, economists believe more growth is required to cut the deficit, which is expected to reach $793 billion in October 2018 and $1 trillion in the following fiscal year.
Dotcom has been facing a legal battle against the US government since 2012 due to his file-sharing site, Megaupload, which was shut down by the FBI accusing him of copyright infringement, money laundering and racketeering. The US is trying to extradite him from New Zealand.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.