There have been predictions by renowned economists like Peter Schiff, Steven Keen, and Nouriel Roubini that the US market, will in long-term weaken, and there will be a collapse in assets price.
Evident of this, the German-Finnish Internet entrepreneur who is also a political activist, Kim Dotcom said the void that will be created by the inevitable US economy crash will be filled by Cryptocurrency.
The internet freedom fighter who invests in Cryptocurrency said digital currency will be investors’ salvager, as a robust and stable means of storing wealth when the downside of the economy prevails. He then advised investors to begin buying crypto.
“US Empire now pays half a trillion dollars in interest payments per year to service its debt. US debt increases by a trillion per year. It’s a death spiral that cannot be undone. Self-destruction and USD collapse are unavoidable. Get out of USD and US stocks. Bue digiy gold & crypto.”
The US economy seems to be the lion of the market, with significant influence on the Asian and European economy. Attesting to this, analyst proclaimed that during the downtrend of the US stock markets, the Asia markets were much susceptible to a potential crash.
The US stock market recently plunged, scrapping all of its additions made in 2018, during a major sell-off.
During this period, analysts believed that the crypto market will surge up.
“It’s not in an environment of positive growth trend so the pressure will be exacerbated in the emerging markets compared to the U.S. market. Unfortunately, this is the beginning. I think that when we get sentiment shifts like these, they always last longer than we would like to see and we could see the selling continue for some time,” the co-founder and managing director of FX strategy at BKAM, Kathy Lien, stated.
However, just as predicted by analysts, a major crash in the US economy by 2020 will have a huge impact on real estate, stock, and financial markets in Asia.
Economists and government agencies in the U.S such as International Monetary Fund (IMF) have shared the debt problem of the country cited by Dotcom. The IMF, in relation to this recently stressed that the US needs to stop disregarding the weightiness of its federal debt held by the public.
A former Chief Economist to Vice President Joe Biden, Jared Bernstein who is now an economist at the Center on Budget and Policy Priorities said:
“Even if you think that public debt just doesn’t matter to economic outcomes, the thing you have to admit is that when we hit a downturn, governments are less likely to take significant steps if the debt is as high as ours is now.”
The senior director at the Capital Markets and Emerging Markets Policy Department of the Institute of International Finance (IIF), Sonja Gibbs, while reiterating Bernstine’s statement said the US significant debt will make stimulating growth and expansion of economy difficult for the country.
Kim Dotcom said when Cryptocurrency moves to mainstream adoption to the extent that businesses, merchant, and retailers embrace it as a payment option, the value of digital assets will rise and consumers will be granted supreme financial freedom.
“Crypto is replacing fiat at an accelerating rate. It’s still early days but within 10 years you can pay all your bills, goods and services with crypto. No more bankers and politicians gambling with your money at the bullshit casino. Encryption + Crypto = Freedom,” Dotcom clarified.