Bitcoin has defied the downward trend of major currencies such as the British pound (GBP) and Chinese yuan by increasing 6.5% over the previous week and nearing the $20,000 level.
Throughout the course of the year, the U.S. Federal Reserve raised interest rates in an effort to combat skyrocketing inflation, resulting in a significant appreciation of the US currency.
Financial insecurities have ravaged global markets. And although Bitcoin has reacted to financial fluctuations for the most part, its remarkable surge over the past week has amazed many traders and highlighted the unstable times.
US Dollar Strength Is Short-Lived?
Even though the US dollar has been doing well recently, Robert Kiyosaki, author of the best-selling personal finance book “Rich Dad, Poor Dad,” has returned with a grave warning: The strength of the dollar won’t last forever.
Kiyosaki tweeted over the weekend to his 2.1 million followers that the “English pound died this week” after the GBP plummeted against other currencies and the Bank of England (BOE) took emergency action with a bond-buying scheme to soothe the jittery markets.
The entrepreneur and best-selling author voiced his thoughts in another tweet:
“Will the U.S. dollar follow English Pound Sterling? I believe it will. I believe US dollar will crash by January 2023 after Fed pivots.”
Will US dollar follow English Pound Sterling? I believe it will. I believe US dollar will crash by January 2023 after Fed pivots. To profit from crash of US $ I bought many more US silver Buffalo rounds. Silver is a bargain. I will not be a victim of the F*CKed FED. Take care.
— therealkiyosaki (@theRealKiyosaki) October 1, 2022
To put more emphasis on his Twitter post, he said:
“I will not be a victim of the F*CKed FED.”
In a subsequent comment on Twitter, Kiyosaki noted that while the Fed continues to jack up interest rates, there will be opportunities to purchase gold, silver, and Bitcoin.
Image: The Coin Republic
Bitcoin And Fiat: Key Characteristics
Crypto and traditional currencies have two important characteristics: the ability to facilitate frictionless transactions between parties and the function as a store of value.
While the money supply produced by a central authority ensures the trustworthiness of fiat currencies, blockchain technology underpins the integrity of cryptocurrencies.
Kiyosaki has been a prominent Bitcoin enthusiast since at least May 2020, when he advised investors to “buy Bitcoin and save yourself” following the American central bank’s massive money-printing activities in response to the global health crisis.
As of this writing, Bitcoin is trading at $19,305, up 3% in the last seven days, data from Coingecko show, Monday.
Investors Should Venture Into Bitcoin, Author Says
Kiyosaki’s most recent stance on the USD comes after he earlier cautioned that the world markets will likely undergo a “catastrophic collapse” and that investors should allocate more money in cryptocurrencies prior to the dollar’s replacement.
Earlier this year, he predicted that the dollar was set to implode, adding that the Fed and the Treasury department are damaging the US currency. Last month, he stated, “The end of counterfeit money is at hand.”
Meanwhile, Sven Henrich, the founder of the market research company Northman Trader, tweeted:
“You know we have reached a unique time in history when #Bitcoin suddenly is less volatile than fiat currencies.”
BTC total market cap at $367 billion on the daily chart | Source: TradingView.com Featured image from Caribbean News Digital, chart from TradingView.com