The bitcoin price is roaring back to life today while the majority of other cryptocurrencies swim in a sea of red. The flagship cryptocurrency has climbed above $11,074, which translates to gains of around 3.11% on the day.
However, the author of Rich Dad Poor Dad has warned that positive developments around a coronavirus vaccine could put the bitcoin price in a perilous state. As such, investors should brace for a deep correction ahead.
Rich Dad Poor Dad Author Outlines Why Bitcoin Could Crash If A Working Vaccine Arrives
Robert Kiyosaki took to Twitter on Tuesday to weigh in on the potential impact of a coronavirus vaccine on the value of safe-haven assets like bitcoin.
According to Kiyosaki, bitcoin, gold and silver will crash if a COVID-19 vaccine is successfully developed. He, however, believes such a correction would be a nice opportunity to accumulate more of these assets.
Going further, the famed businessman excoriated the US government for the growing national debt. The US is “bankrupt” with a debt that has swelled to a staggering $28 trillion. This, for Kiyosaki, is the real problem — not the COVID-19 crisis. Kiyosaki then urged his followers to buy gold, bitcoin, and silver as they are the “best investments long-term”.
Why You Shouldn’t Ignore Robert Kiyosaki
The rich dad author is well-known for trumpeting bitcoin to his followers. Last month, he advised investors to purchase the cryptocurrency as it will be a great hedge against the imminent banking crisis. He even noted that billionaire investor Warren Buffett was already selling a significant chunk of his bank stocks.
Interestingly, other experts in the crypto industry agree that the Fed’s expansive money printing to cushion the economy in the light of the pandemic is catastrophic for the dollar.
For instance, bitcoin bull Max Keiser recently spoke about the dollar’s devaluation as the global economy slips into a rut. He also cited Warren Buffett who is ditching the dollar and US stocks. The Oracle of Omaha is instead investing in gold, which is notably a major shift from his usual investment approach. According to Keiser, Buffett exiting the dollar is a major red flag that investors should not ignore.
“What’s Warren Buffet doing? Warren Buffett has a huge cash position, he’s recently moved into gold stock, which is a very different kind of investment than he’s used to making over the past decades, and as of this week he’s now got a big position in Japanese stocks. He’s getting out of the dollar; I think that’s pretty clear. That should be a red flag to folks out there — that one of the world’s most successful investors is getting out of the dollar”.
With that said, bitcoin and precious metals are potentially the best investments to hedge against a weakening dollar and a likely economic malaise.