Robert Kiyosaki’s advice on investing in Bitcoin
Bitcoin, the leading cryptocurrency, caught the attention of many when it reached an impressive all-time high of US$69,000 in November 2021, highlighting the appeal of investing in Bitcoin.
However, this impressive figure hasn’t remained stable; as of the moment, the value has taken a downward spiral to around $16,000, marking a decline of 77% from its peak.
Prominent financial expert and author of the best-selling book, “Rich Dad, Poor Dad,” Robert Kiyosaki sees this as an opportunity rather than a setback. As Bitcoin takes a tumble, Kiyosaki is on the sidelines, ready to take action.
Kiyosaki took to Twitter to share his optimism: “BITCOIN IS FALLING APART. Great news. I’m waiting for bitcoin to fall to the 20k level, then I’ll wait for a test of the bottom, which could be $17k. Once I know the bottom is in place, I will back up the truck. Crashes are the best time to get rich.”
BITCOIN CRASHING. Great news. As stated in previous Tweets I am waiting for Bitcoin to crash to 20k. Will then wait for test of bottom which might be $17k. Once I know bottom is in I back up the truck. Crashes are best times to get rich. Take care.
— Robert Kiyosaki (@theRealKiyosaki) May 12, 2022
And so far, we’ve noticed that he was quite right on this call!
He didn’t stop there; he confidently proclaimed Bitcoin as the “future of money” and speculated that its drop could even hit a lower limit of US$11,000.
Being an investor in today’s turbulent market can be a challenging endeavor. However, if you resonate with Kiyosaki’s viewpoint, there are multiple ways you can capitalize on Bitcoin’s prospective bounce-back.
Investing in Bitcoin Directly
The most straightforward approach is to directly purchase Bitcoin. Numerous platforms exist today that facilitate individual investors to trade cryptocurrencies. It’s crucial to note, though, that certain exchanges impose up to 4% commission on each transaction. Thus, it’s prudent to opt for apps that levy minimal or zero commissions.
Despite Bitcoin carrying a five-digit price tag, you don’t have to break the bank to invest. You can buy fractions of Bitcoin, which means you can commence your investment journey with an amount you’re comfortable spending.
Delving into Bitcoin ETFs
The allure of exchange-traded funds (ETFs) has surged in recent years. They offer the convenience of trading on exchanges, making their purchase and sale an effortless process. Now, they also present investors with an opportunity to acquire a stake in Bitcoin shares.
Take the ProShares Bitcoin Strategy ETF (BITO), for instance. It made its debut on the NYSE Arca in October 2021, marking the first Bitcoin-linked ETF on the US market. This fund deals in Bitcoin futures contracts listed on the Chicago Mercantile Exchange and comes with an expense ratio of 0.95%.
Following close behind is the Valkyrie Bitcoin Strategy ETF (BTF), which launched a few days post BITO. This ETF, listed on Nasdaq, also invests in Bitcoin futures and features an identical expense ratio of 0.95%.
Investing in Bitcoin-centric Companies
Companies with ties to the cryptocurrency market often observe their shares moving in tandem with these digital assets.
First off, we have Bitcoin mining enterprises. While the computing power necessary for this operation doesn’t come cheap and energy expenditures can mount, an increase in Bitcoin’s price could potentially result in a surge of investor interest in companies like Riot Blockchain (RIOT) and Hut 8 Mining (HUT).
Next up, we have intermediaries such as Coinbase Global (COIN) and PayPal (PYPL). As the trading and usage of cryptocurrencies gain momentum, these platforms stand to reap benefits.
Last but not least, certain companies have a considerable amount of cryptocurrencies in their balance sheets. Take MicroStrategy (MSTR), an enterprise software company, as an example. Despite having a market capitalization of US$2.3 billion, it held around 129,218 bitcoins as of the end of March, translating to a stash worth approximately USD 3.8 billion.
In conclusion, whether you are a seasoned investor or a novice just starting, it is crucial to stay informed and understand the potential risks and rewards of your investments. The decline of Bitcoin’s value might seem alarming to some, but as Robert Kiyosaki highlighted, it could also be viewed as an opportune moment to grow one’s wealth.