Crypto is a Better Long-Term Investment Than USD and Gold, Says Investor.
Kim Dotcom, the German-Finnish entrepreneur and the creator of Mega, has publicly stated that gold and crypto are better long-term investments than the US dollar. This is a reality that can be glimpsed by the serious economic problems worldwide, therefore, bitcoin and other crypts can get preference when investing.
In a recent statement, Dotcom said the following:
“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%.” The experts in finance are clear that difficult times are coming and the financial system can collapse, it will be worse than in 2008.
Value of the US dollar
The value of cash and any other form of money depends on their ability to operate as a medium of exchange. If the US dollar, for instance, can be used to purchase properties and services, it has monetary value.
As former Goldman Sachs CEO Lloyd Blankfein stated, fiat money like the US dollar is valuable because under the control of central authorities, people are forced to use cash as the main method of payment. In a way, the value of fiat money is directly attributable to the control a state has over its financial system, and a decline in authority could lead the value of the currency to drop substantially.
It is to place a currency in a mandatory way to carry out transactions in international trade, when confidence is lost due to bad policy, the countries involved in unilateral sanctions can abandon the dollar pattern, from there to collapse there is a step.
Most recently, the lira, the national currency of Turkey, experienced a 50 percent drop in its price against the US dollar triggered by the imposition of tariffs on the Turkish economy by the US government. This happened in a few hours, the Turkish government’s responses will soon be known and an economic war between these involved countries begins, the results can be disastrous for both economies.
Likewise, to prevent the devaluation of the lira, financial authorities of Turkey immediately implemented strict capital controls to prevent its currency leaving the region and being liquidated for other foreign reserve currencies. This is an immediate measure, the worst is yet to be seen.
For a major economy like the US, such a drastic situation may never occur. However, Dotcom emphasized that the increasing debt of the US economy, which currently hovers at around $845,000 per family, could lead to a massive devaluation of the US dollar in the long-term. This is a sword of Damocles that is on the economy of this power, if it falls the whole world economy will collapse.
Something very important to know, “The average total debt per family in the US is now at 845000 USD. 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,” Dotcom said, citing the statement of Russia’s Finance Minister.
This is a very discouraging scenario, which can lead to the ruin of millions of people, worldwide, it is like mortgaging the future of several generations, people who have not been born, already have a debt that they can not cancel or honor.
Earlier this year, Anton Germanovich Siluanov, the Minister of Finance of Russia, said that the government significantly reduced its investment in US assets, as it has become a risky tool for payments. This may be happening with the debt that China has bought, if these countries sell those papers or obligations, the US economy may be very compromised.
Crypto Versus Gold
Since its creation in 2009, Bitcoin, the most dominant cryptocurrency in the global market, has been described as gold 2.0, or a better version of the traditional asset.
For decades, due to the physical characteris of gold and the ability of central authorities to confiscate the holdings of people stored in the precious metal, experts have criticized the fungibility and transportability of the asset. That is to say, to take care, to store, is very expensive for the investor.
In contrast, cryptocurrencies like Bitcoin and Ether, the native cryptocurrency of Ethereum, are liquid, easily interchangeable, and transportable, and possess all of the characters that allow it to function as a better store of value and a medium of exchange than gold.
In summary, as the investors and interested parties know the characteristics of the blockchain-bitcoin technology, it is easier to make the best decisions, therefore it is very important to know in depth before investing, not to risk resources in something unknown, therefore , dear friend study with passion and then invest what is not a priority. It waits for new ads.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.