Internet industry magnate and financial markets prognosticator Kim DotCom says now is the time to buy bitcoin in light of the Chinese stock market meltdown and a worsening outlook for the global economy as a whole.
Big trouble in china
The Chinese financial markets have had a long, hard summer. Since June 12, domestic market bubbles have burst, forcing massive action to counter it by the People’s Bank of China, which is majority-owned by the Chinese Government.
Last month, when the primary Shanghai Index fell over 8%, the People's Bank of China devalued the renminbi by almost 2%. This level of market manipulation has previous been only reserved for the American market and now Kim DotCom is throwing gasoline into the fire, tweeting:
Is the China bubble ready to pop? A significant global stock market correction is imminent? Get some #Bitcoin. Just in case. Thank me later.— Kim Dotcom (@KimDotcom) August 24, 2015
DotCom’s previous fortune telling has had mixed results. During the beginning of the “Grexit” crisis several weeks ago, he said the “markets will crash.” Since he used the word “markets,” implying more than one, which usually includes the New York Stock Exchange, he can at best get partial credit for the corresponding fall in China.
He also recommended buying gold at the time, though the price of the precious metal has not taken off either. This doesn’t mean it is not good advice, but no short-term results have been seen due to the “Grexit”.
KimDotCom is used to being in the limelight, after creating online supersite Megaupload in 2005, the streaming service for copyrighted material without authorization. The site was shut down in 2012, but DotCom was able to secure a court decision preventing the U.S. government from seizing his private property in association with the site’s closure.
Economic issues in Greece did not create a cascade effect of economic turmoil worldwide, but it did produce a boom in the bitcoin market, whether directly or indirectly. Prices approached 2015-highs on July 12, as values reached well over US$300.
Meanwhile, rumors persist that as many as two dozen financial markets are heading for a massive “correction” now or in the near future, as early as next month, including the New York Stock Exchange. As market conditions warrant, Cointelegraph will keep you updated on the latest.