The past few weeks have undoubtedly been rough for crypto; from the February highs, Bitcoin has fallen 36%, reaching a low of $3,800 in March.
Robert Kiyosaki, the author of the popular financial book “Rich Dad Poor Dad,” sees no reason to fear, though. In fact, the well-known investor recently went as far as to say that it’s time to drop dollars for Bitcoin and other hard money.
Sell Dollars, Buy Bitcoin: Robert Kiyosaki
In a recent tweet, Kiyosaki explained that with the Fed “counterfeiting […] trillions of fake dollars – $82 billion a month to $125 billion a day” and interest rates at 0%, it makes sense to save “gold, god’s money, or Bitcoin, people’s money,” rather than the fiat dollars that don’t yield anything and are being constantly debased.
He added in a later tweet that the dollar is likely “dying,” boosting the case to invest in gold, silver, and Bitcoin.
DEATH OF DOLLAR. People desperate for money. Very sad. If government gives you free money take it yet spend it wisely. DO NOT SAVE. Buy gold, silver, Bitcoin. Dollar is dying. Silver $20. Best Buy for future security. Everyone can afford $20, especially with free fake money.
— therealkiyosaki (@theRealKiyosaki) April 4, 2020
Demand Is Booming
It should come as no surprise, then, that demand for Bitcoin is booming.
Leading cryptocurrency exchange Coinbase reported that during the now-infamous “Black Thursday” crash, the exchange saw a dramatic surge in buying interest for cryptocurrency:
“But beyond just a rush, two things are clear: customers of our retail brokerage were buyers during the drop, and Bitcoin was the clear favorite. Our customers typically buy 60% more than they sell but during the crash this jumped to 67%, taking advantage of market troughs and representing strong demand for crypto assets even during extreme volatility.”
The U.S.-based Kraken corroborated this narrative, writing in a recent tweet that the exchange “recorded an 83% rise in sign ups, and a 300% increase in verifications” over the past few weeks.
Also, per previous reports from NewsBTC, according to data from blockchain analytics company Coin Metrics, the value of all U.S. dollar stablecoins (USDT, Binance USD, USD Coin, etc.) is on the verge of passing $8 billion — a metric up by 20% in the past month in itself.
CM has added Huobi dollars (HUSD) and Binance dollars (BUSD) to their community data. Stablecoin supply in the sample is just shy of $8b collectively. My guess is it passes that threshold tomorrow. https://t.co/aEOeZIpiDk pic.twitter.com/B9WPd1mbsM
— nic carter (@nic__carter) March 29, 2020
As to why this is bullish, Su Zhu, CEO of Three Arrows Capital, summed it up nicely in 2019 when he wrote that with so much money sitting on the sidelines, especially in stablecoins, BTC could appreciate rapidly:
“Theres an estimated $2B in cash sitting at crypto funds/holdcos. Theres another $2B+ sitting in stablecoins, and another $2B sitting at exchanges/silvergate/signature. This is $6B fiat already onboarded to crypto to buy your bags. Imagine thinking we need new money to hit $10k.”
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