An Entrepreneur who has been under siege by the United States and New Zealand governments since the 2012 closure of Megaupload, Kim Dotcom, has said that USD is in an irreversible death spiral due to the federal debt in the United States.
Dotcom has specifically mentioned the federal debt in America which has been quickly increasing due to the budget situation seemingly getting worse. From the late 90s to the early noughties, the said debt was relatively steady in the 5.5-5.8 trillion USD range but ever since 9/11 in 2001 and the beginning of a global war on terror, the US debt rose to 7 trillion USD by the early months of 2004. In Iraq, the conflict became a war of attrition and to fund this, the debt went even further up to 9 trillion at around the start of 2008.
So let’s take a look at this hypothetically. If crypto was around during this time then the funds would have been able to get to those who needed it quicker with faster transactions with Bitcoin, and even faster with XRP. But as we say, this is just hypothetical.
In the same year, the Great Recession started which resulted in the worst economic crisis since the Great Depression. Essentially, the trillions of dollars which were used to bail out banks and corporations, and this practice continues to this day. During 2009, the debt went up 11 trillion.
“This acceleration of debt coincided with the launch of Bitcoin, and was referenced in the Bitcoin genesis block with the phrase The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”
By 2012, the debt in the United States had surged up to 15 trillion and the speed of the debts increase never seemed to slow down breaching the 20 trillion in late 2017.
As put by Bitcoin News:
“As of 25 October 2018, this debt sits at USD 21.7 trillion, up USD 1.25 trillion in a year, or an increase of roughly USD 3.45 billion per day.”
As said by Kim Dotcom through his official Twitter handle:
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. Buy gold & crypto.
— Kim Dotcom (@KimDotcom) 25 October 2018
There are several ways crypto could have helped these situations but could the USD really be coming to an end?
What are your thoughts? Let us know what you think down below in the comments!