The leading proponent of privacy and bitcoin, Kim Dotcom has forecasted a market crash in the near future and has advised people to start investing in assets like Bitcoin and gold to brace themselves from any repercussions.
According to Kim Dotcom, the market is likely to crash following Greece’s inability to repay loans it has received from the Troika in the form of bailout packages. Greece is still stuck in negotiations with the International Monetary Fund, European Central Bank and Eurozone nations to secure the release of the last installment of the second bailout package and a solution to repay the debts due on 30 June. Failure to do so soon will lead to collapse of the Greek economy resulting in the European nation’s exit from European Union, famously termed as Grexit.
Greece currently has a debt of over 1.6 billion euros which has to be repaid to the IMF. Kim Dotcom has been a vocal proponent of Bitcoin and its role as an alternate form of finance. He expressed his take on the possible outcome of Greece’s exit from EU on Twitter a couple of days ago. He also speculated the rise in value of gold and Bitcoin in the likelihood of market crash.
Even before Kim’s prediction, there was an increased activity on Bitcoin network originating from Greece as people started withdrawing their money held in Greek banks to invest in Bitcoin. In the words of Joshua Scigala, one of the founders of online Bitcoin and gold exchange Vaultoro – “Some people are not waiting for the government to figure out an exit plan and are doing it for themselves”. Joshua also mentioned that they have observed a 124% increase in deposits from IP addresses associated with Greece on their platform since the last couple of months.
This change is trends is also a positive indicator of Bitcoin being considered as one of the trusted assets next to gold and opens doors for a whole new digital economy guided by Bitcoin.