Robert Kiyosaki, the author of Rich Dad, Poor Dad, has a complicated relationship with Bitcoin. He’s urged his millions of followers to invest in crypto at certain intervals. At other times, he’s suggested that tuna tins are a better investment than Bitcoin (BTC) — or claimed that more government regulation might eventually lead to the government seizing crypto assets. Let’s look into what the famous writer thinks and why he is wrong.
Kiyosaki originally began purchasing Bitcoin as a result of his dissatisfaction with the Federal Reserve’s quantitative easing and other policies. He’s a strong supporter of gold and silver for similar reasons: he believes they’re all forms of inflation protection. This story hasn’t held true for Bitcoin recently, however. Despite the fact that inflation is at its highest level in 40 years, Bitcoin’s value has fallen sharply. In June, the price of bitcoin dropped to an 18-month low.
Why Kiyosaki is wrong about Bitcoin
The most serious danger in Kiyosaki’s logic about crypto is the notion that we may predict when the present price slump will bottom. Nobody has a crystal ball, and there are still a lot of variables that might cause Bitcoin’s value to fall even more. This can be seen in Kiyosaki’s recent statements.
He has frequently predicted the Bitcoin price would fall to $20,000, $9,000, or even $1,100 in just a few months. He believes that Bitcoin and food are the future. Then he claims that tuna and baked beans are more superior than Bitcoin because they may be consumed. And then he refers to those who sell their crypto as failures.
There are a number of financial specialists that claim that the choices we make in a bear market may lead to wealth. But as an investor, these tumultuous times are difficult, especially when your cryptocurrency portfolio has lost a lot of value. Investors want guidance from “experts,” and a string of somewhat contradictory statements about cryptocurrency does not help matters.
Some investors may be tempted to sell out of fear that they will lose more money. It’s natural to want to cut your losses and sell when some cryptos have dropped 90 percent from their peaks. It’s difficult to sit tight and wait for the storm to pass, but selling poses the danger of missing out on any potential gains if prices bounce back. The difficulty is that we don’t know when — or even if — better days will arrive. Getting out of crypto-town becomes increasingly enticing when a guru predicts that the price can plummet by 50% or more.
Some investors may be wondering when to get in or if it’s still a good time to buy Bitcoin. Some claim that when Bitcoin dropped below $20,000, we hit a bottom, which might be true. Nonetheless, crypto prices continue to fall under considerable downward pressure, and there are several major hurdles ahead for the technology. Even so, if Kiyosaki’s devotees are expecting a drop to $9,000 or even $1,100 before jumping back on the bandwagon, they could hesitate too long on the sidelines and never purchase cryptocurrency at all.
One thing that Kiyosaki’s mixed messages make clear is the degree of risk involved in this asset class, and the macroeconomic climate or increased government control may have a significant influence. If you’re thinking about buying crypto while prices are low, do your own study and ensure you understand the risks. You might discover some useful financial advice on social media from experts. Keep in mind that it is YOU – not them – who is putting your money at risk.