Bitcoin continued its roller coaster ride on May 20, gaining more than 3% over a 24-hour period that saw the cryptocurrency’s price swing from a low of $28,829.20 to a high of $30,718.50. Bitcoin is still down by more than one-third for 2022 amid a broader cryptocurrency crash — which could mean this is the time to buy, according to at least one financial guru.
That guru, businessman and “Rich Dad Poor Dad” author Robert Kiyosaki, said in a May 12 tweet that “Bitcoin crashing” is “great news.” He went on to say:
“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.”
Kiyosaki didn’t back off of those comments this week even as bitcoin continued to bounce up and down. In a May 19 tweet he said, “I remain bullish on Bitcoin’s future. Waiting for test of new bottom. $20k? $14 k? $11 k? $9?”
Of course, Kiyosaki — who has earned a reputation as a contrarian with a taste for broad and searing pronouncements — didn’t leave it there. He went on to say that the reason he remains bullish on bitcoin is because the Federal Reserve and Treasury Department are “corrupt organizations,” though he didn’t offer further insight on exactly why, or what that has to do with the price of bitcoin.
In any case, Kiyosaki is clearly urging investors to pour money into an asset that has fallen by a staggering 56% from its November high of $68,990. Kiyosaki doesn’t say when to buy, however, other than waiting for the bottom. That’s difficult to predict considering the price volatility. Kiyosaki speculates that the price could sink below $10,000 — a price bitcoin hasn’t seen since the summer of 2020.
This much is certain: Most bitcoin investors who bought the crypto this year have lost money. Even if you bought it a month ago, when some speculated that it was ready to bottom at around $41,000, you would have already lost roughly one-quarter of your investment.
That’s why many financial experts say you should treat bitcoin as a long-term investment and be prepared to ride the extreme ups and downs.
If you’re uncomfortable buying the coin directly, one option is to invest in a Bitcoin exchange-traded fund such as ProShares Bitcoin Strategy ETF (BITO). It started trading on NYSE Arca in October 2021 to become the first U.S. bitcoin-linked ETF on the market, Yahoo Finance reported. The fund holds bitcoin futures contracts that trade on the Chicago Mercantile Exchange.
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