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In June 2021, Robert Kiyosaki, famously known for authoring Rich Dad Poor Dad, predicted a big crypto crash, whose effects would affect numerous projects and push the price of Bitcoin down massively.
In a tweet on his official account, he said, “Biggest Bubble in World history is getting bigger. Biggest crash in world history coming.… Waiting for bitcoin to drop to $24K.”
The news came as a shock to most people who follow Kiyosaki as just a few months earlier, he had been pretty confident about crypto, even predicting the price of Bitcoin rising to $1.2 million in five years.
So, why the shift in opinion?
Most importantly, is a massive crypto crash in the offing?
Here’s Why We Could be (or Already) in a Crypto Bubble Collapse
The crypto industry has had a fairytale-like rise, from being virtually non-existent a little over a decade ago to having a market cap of over $1.5 trillion today.
This meteoric rise has increased the number of enthusiasts as well as skeptics.
And for the past year or so, skeptics have been predicting the crypto bubble will burst.
Now, while Bitcoin and other crypto outperformed expectations in 2021, with Bitcoin even reaching an all-time high of $68,000 in November, the industry has not had quite the expected start in 2022.
In January, Bitcoin, Ethereum, and many other major cryptos fell by 10% or higher.
By late January, Bitcoin had fallen below $38,000, the lowest price in six months.
Since then, crypto prices have continued to struggle, with small hikes and longer dips.
Right out, we are amid a serious crypto crash seeing as the price of Bitcoin and other cryptocurrencies dropping to levels not witnessed since the crypto market began surging in late 2020.
And the shocking part? The crash has wiped away almost $1 trillion worth of value in only a month!
But what gets me with all this is how accurate Kiyosaki was, seeing the current Bitcoin price of $28,955.60, which is only about $5,000 above his prediction.
No doubt Bitcoin being the pioneer affects all other cryptos.
So, it’s no surprise that Ethereum, Tether, BNB, Solana, Cardano, and other popular cryptos have been on a downward trend for the past week.
So, this could actually be the crash that Kiyosaki predicted several months ago!
So, Why Are Prices Crashing?
The crypto nosedive is indicative of much bigger economic problems.
For one, there’s record global inflation, with traditional assets performing quite poorly across the board.
According to a recent report by CoinDesk, the global equity markets are “a sea of red,” with stocks in Europe recording one-month lows.
Futures within the S&P 500 index are only now recovering from a 0.7% drop.
On the other hand, commodities aren’t doing too good either, and gold, which is often considered a solid store of value, fell by almost 1%.
Then there is, of course, the war in Ukraine, which has only added fuel to the fire.
Also, the continued volatility of crypto has increased worry among investors, with many not willing to take on additional risk with the already shaky stock market.
So, basically, there is low investor confidence, which isn’t working in favor of crypto.
But Does the Crash Mean Doom? Is Crypto Going to Be Wiped Away?
Crypto is known to be volatile, which is why coins and tokens are considered speculative assets.
And this is not the first time we’ve seen Bitcoin and other cryptos dip massively.
For example, when the COVID-19 pandemic hit in 2020, Bitcoin lost more than half its value in just two days, dropping from $10,000 to $4,000.
It fell by more than 50% again in May 2021, a time when $1 trillion in value was wiped out from the crypto market in a week.
But what happens after all these crashes?
Crypto still manages to recover.
Now, with interest and adoption of crypto, especially in business, increasing by the day, recovery is imminent.
But it may not be as quickly as you would probably hope for.
The bearish trend could very well persist until the markets stabilizes.
So, What Should You Do If Prices Continue to Fall?
While Kiyosaki predicted a crash, he has also said that a crash is the best time to get rich.
So, it may not be all gloom and doom.
He actually believes that a crash is the best time to stock up on crypto.
Reason being it’s only a matter of time before governments accept crypto as a medium of exchange to reduce operational costs that come with printing money.
He is actually encouraging people to invest in crypto to create a better life for themselves in the future.
Now the questions is — Do you believe him?
If you’re not for this school of thought, you could consider other, more conventional solutions to shelter yourself from these crashing prices.
For instance, you could diversify your portfolio by adding different assets, keep yourself informed on current trends, hold some of your investment liquid, and invest only in established cryptos.
So, do you believe we are in a crypto bubble crash? Do you see the market recovering soon? Let’s engage in the comments.
𝐀𝐥𝐬𝐨, 𝐝𝐨𝐧’𝐭 𝐟𝐨𝐫𝐠𝐞𝐭 𝐭𝐨 𝐜𝐡𝐞𝐜𝐤 𝐨𝐮𝐭 𝐭𝐡𝐞 𝐮𝐩𝐜𝐨𝐦𝐢𝐧𝐠 𝐥𝐚𝐮𝐧𝐜𝐡 𝐨𝐟 𝐦𝐲 𝐍𝐅𝐓, 𝐑𝐢𝐜𝐡 𝐆𝐨𝐝𝐝𝐞𝐬𝐬. 𝐉𝐨𝐢𝐧 𝐨𝐮𝐫 𝐬𝐨𝐜𝐢𝐚𝐥 𝐜𝐡𝐚𝐧𝐧𝐞𝐥𝐬 𝐚𝐧𝐝 𝐛𝐞 𝐭𝐡𝐞 𝐟𝐢𝐫𝐬𝐭 𝐭𝐨 𝐟𝐢𝐧𝐝 𝐨𝐮𝐭 𝐚𝐛𝐨𝐮𝐭 𝐠𝐢𝐯𝐞𝐚𝐰𝐚𝐲𝐬, 𝐰𝐡𝐢𝐭𝐞𝐥𝐢𝐬𝐭 𝐚𝐧𝐧𝐨𝐮𝐧𝐜𝐞𝐦𝐞𝐧𝐭, 𝐞𝐭𝐜.✨