The creator of file-sharing platform Megaupload, Kim Dotcom, claims it's time to buy gold and crypto. He explains that the US economy is on the verge of collapse, its debt is astronomical, and 'the big crash is coming 100%'.
It may look like an unjustified claim yet. Dollar is very strong today, the US seemingly wins in trade wars, achieving economic victories, and its economy grows. But how long will it last? The stock market leverage is at record heights, $561 billion, and it could only get worse. Just think about it, it's equal to 1/5 of UK GDP. It can't last forever, and someday it will go down, and the higher it will climb, the bumpier will be the downfall. If many big players will decide to get out of position, it may trigger the collapse, a chain of liquidations. And if the biggest economy in the world has problems, everybody else will have them too.
Aside from the excessive leverage, there is another problem. The USA pursues its own agenda, and it doesn't care about other countries, putting pressure on everyone who has other interests. China, Russia, Turkey, even the European Union — all alliances and friendships don't matter when money is involved. This behavior also won't be tolerated forever — by trying to influence other countries via prohibiting any dollar operations with them, the US forces them to switch to other currencies, like EUR, CNY or even RUB. It's not good for the USA. While they are winning tactically, short-term, they are losing big-long term, because if de-dollarization happens, it would impact its economy very hard. So either way, it's a lose-lose situation. The only question is 'when'. Thus maybe Kim Dotcom is right, it's time to buy gold and crypto if crypto is going to retain its value during the hard times (that’s not an investment advice). These times could come in a few years, or maybe tomorrow.
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