Blog | Cryptocurrency

Bitcoin’s Flash Crash

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Bitcoin on sale! What could be better?

Every week I write a little message to all my subscribers of our Rich dad Cryptocurrency Newsletter. The letter is just for them, until today. Today I will be adding to this blog.

Today, after the Bitcoin and crypto downturn, so many people and crypto investors are scared about their investments in the crypto space.

I am not.

So, for the first time ever, I want to share with you what I shared with my Newsletter subscribers…

Bitcoin is starting to correct. This is great news!

I tweeted about this the other day:

Bitcoin crashing. Good news. Getting ready to buy more. Remember the problem is not Elon Musk or Bitcoin. The problems are the Fed, Treasury, and Biden. Gold, silver and Bitcoin are the solutions.

I always say knowledge is the new money. Knowledge does not go away, it stays with you and it evolves with you. No one can take it from you.

If you read the comments I received from this tweet, you will see many of the “Bandwagon Bitcoiners” are bailing. This is where we see the separation between investors and traders.

Investors see the bigger, macro picture and act accordingly. Traders jump in when a coin is “hot” and bail when it corrects. This is the complete opposite of what I will be doing. Traders are gamblers only winning when they accurately predict the future.

Here is how I see the Bitcoin and crypto correction…

Bitcoin is on sale! What could be better?

When anything else goes on sale everybody rushes in to take advantage. Parents trample each other to death just to get in on the latest Christmas sale. But when a stock or Crypto coin goes on sale, traders panic and run the opposite way.

This is why I buy Bitcoin. Not to trade, but for the bigger reason. It is a hedge against the dying dollar which is being killed more and more every time the Federal Reserve prints more money. Do you think the Federal Reserve will stop printing money?

If you do, then sell. Since I don’t think they will ever stop printing, I’m buying.

I certainly won’t tell you what to do with your money and neither will my newsletter’s crypto expert, but if you can see your dollars fading away, then you know you need to look carefully at cryptocurrencies.

The problem with predictions

I talk a lot about how difficult it is to predict the future. Predicting the future is a loser’s game. It’s easy to be wrong and nearly impossible to be completely right.

Don’t think I am any different. In my book, Rich Dad’s Prophecy, I predicted that the biggest stock market crash in world history would happen sometime around 2016. I was wrong.

Case in point, it is difficult to predict the future. It’s 2021 and the crash hasn’t happened yet. Many people are happy to point fingers and say, “I told you so.” But I believe the correction will still happen—and I’m preparing.

In the same vein, I believe the dollar is dying. Is this a prediction? Yes. So how do I prepare for my prediction? I buy gold, silver and Bitcoin. What happens if my prediction does not come true? Great! I still have my gold, silver and Bitcoin.

What if my prediction does come true? Great! I have gold, silver and Bitcoin.

My point, If you only bought Bitcoin to trade, then you could be putting yourself in danger. If you bought it to invest and as a hedge against a failing dollar, then great! You win no matter what the dollar does.

That mindset is the difference between an investor and a trader. Investors create win-win solutions. Traders can only win if their prediction comes true.

Bitcoin is in a slump. Great! I’m going to buy more because Bitcoin creates a win-win situation for me. Before you decide what you will do, figure out if are an investor or a trader.

Original publish date: May 19, 2021

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