Why ‘Rich dad, Poor dad’ author Robert Kiyosaki is happy about the crypto crash.
Robert Kiyosaki, the man who wrote the book titled Why A students work for C Students and Rich dad, poor dad, is back again. After convincing us that we would one day hire those kids that asked for extra sheets in the exam hall, he’s now trying to convince us that the crypto crash might be a good thing.
Robert Kiyosaki is a finance book author and investor that has made millions teaching people about financial intelligence, real estate investing, and wealth-building. With over twenty-five years in the industry, Kiyosaki has faced a lot of highs and lows. From investing in assets like a gold mine, solar company, real estate, etc. He’s now focusing on digital assets.
What caused the Bitcoin Crash?
The past few weeks have been tough on the cryptocurrency industry. Different publications are on crypto crash watch following the fall of Luna. Many digital assets also faced high volatility in their prices. The price of Bitcoin crashed lower than expected and this has led many people to panic sell their crypto assets. Although the market looks like it could be recovering, many are still speculative.
Bitcoin is hands down one of the most publicly adopted cryptocurrencies. Although the coin was initially created as a decentralized currency for p2p exchanges, it is now used more as a store of value.
This is like saying, for example, Mrs B. decides to exchange her 50,000 Naira for Dollars. At first, it may seem strange because she cannot buy goods for her store or her household with the currency, but Mrs B. believes that the money has value. Instead of using it to buy things, she plans to save the Dollars for the future. So, instead of using a digital asset as a means of exchange, it can be used as a store of value.
Unlike the Dollar, Bitcoin is scarce. This means that there is a limited amount of the digital asset. The higher the demand for Bitcoin, the more expensive it would be and vice versa. The latest news about the crypto crash, coupled with the war in Europe, inflation, the state of the stock market, etc., has led to a lot of fluctuations in the price of many crypto assets. According to Moneywise, Bitcoin dropped from $68,990 last November to $29,000.
What did Robert Kiyosaki say
Robert Kiyosaki, however, is unfazed by the news about the Bitcoin crash. The finance book author and investor wrote in a series of tweets on why Bitcoin crashes are good and why this is the “time to get richer.” In the tweets, he explained how his rich dad taught his son and himself that “profit is made when you buy…not when you sell.”
He also went on to urge his followers on social media to protect themselves from the upcoming high inflation that is inevitable. He urges them to use their fiat money to buy assets like silver, gold, and Bitcoin.
Why are Robert Kiyosaki’s tweets relevant?
The crypto industry is currently full of negative press, especially because of the Bitcoin crash. People are afraid and are pulling their funds out of the cryptocurrency market. This is a normal response as no one wants to be the biggest loser in the market. But actions like these only ensure the death of many potentially life-changing crypto projects.
Financially literate influencers like Robert Kiyosaki have the power to help change people’s sentiment towards seeing more of the positive side of the crypto industry. This could be a double-edged sword as many influencers have led many of their followers to make risky and untrustworthy investments. However, crypto assets like Bitcoin have existed in the industry for more than a decade. Bitcoin has experienced many crypto crashes and has always bounced back up.
Should I buy Bitcoin?
Now is a great time to invest in cryptocurrencies like Bitcoin. The Bitcoin crash has ensured the price of Bitcoin is lower than it has been in years. Although it is tough to predict the market, if history repeats itself, Bitcoin will likely rise again. People who invested in Bitcoin in 2018 when it was around $6,000 would have seen their assets grow two times their initial investment in 2019 when Bitcoin rose to around $12,000. In 2021, the price of Bitcoin soared to about $60,000, which is over ten times its price during the crash of 2018.
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