Kim Dotcom: Big Crash Needed for Crypto to Go Mainstream
Internet entrepreneur Kim Dotcom said a “big crash” would help mainstream cryptocurrencies as a daily medium of exchange, rather than fueling speculative behavior.
He spoke as cryptocurrency markets fell sharply on Friday, following a sudden sell-off. Bitcoin (BTC) fell around 4% to $21,130, its lowest level in more than three weeks. Ethereum (ETH), the world’s second-largest digital currency, fell 9%, or $168, to $1,640.
“The big crash is necessary for crypto to go mainstream with use instead of speculation,” Kim, a self-proclaimed ‘Internet freedom fighter’, so on Twitter. “That’s when you break free from the oppressors and freedom has the decentralized power to flourish (sic).”
Crypto prices are falling
Bitcoin recently rose above $25,000 for the first time since a low of $17,500 in mid-June, helped by a rally in US stocks amid signs that inflationary pressures may be easing.
Over the past month, Ethereum doubled in price to more than $2,000, spurred by expectations of the long-awaited network upgrade tentatively scheduled for September 15.
The latest fall in crypto prices, which also saw leading assets including Binance coin (BNB), Solana (SOL) and Cardano (ADA) fall, may be a result of the market’s “predisposition to volatility.”
“These things happen, and the reason is because liquidation happens in response to large, long trades that are often handed over,” Sebastian Menge, founder and COO of burn-to-earn platform Fitburn, told Be.[In]Crypto.
“When the leverage is liquidated, it is reflected in the prices of crypto assets across the board. Normally, market makers search for liquidity, and in doing so, they tend to push the price up or down to liquidate the trades.”
‘Use crypto, don’t HODL’
Kim Dotcom, the German-Finnish entrepreneur and political activist, formerly criticised the American economy as “beyond bankruptcy”. He is also very pessimistic about the future of the global economy.
At one point, Dotcom talked about a coming “New World Order” and how it aims to “shift into a new dystopian future where the elites are the masters of the slaves without the cosmetics of democracy.”
But he has also urged his 860,000 Twitter followers to buy bitcoin and bitcoin cash, largely because he believes the US dollar will become worthless and the economy will collapse. Dotcom’s last piece of advice is for people to use crypto as everyday money.
“Crypto is the future. Nothing can stop this revolution. Don’t HODL. Use crypto everyday,” he tweeted.
Cryptocurrency proponents have been waiting for mass adoption for a long time. In March, US President Joe Biden issued an order on the crypto industry and how his administration intends to interact with it in 2022.
Observers said the executive order, which covered a range of topics including consumer protection and financial stability, took a “fundamentally positive approach to crypto” and has been loosely seen as a key to mainstream adoption.
For Be[In]Crypto’s Latest Bitcoin (BTC) Analysis, click here.
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