‘Accidents are the best time to get rich’ – here’s why Robert Kiyosaki thinks bitcoin’s plunge is great news and how you can profit from it
Bitcoin is on a wild ride.
The world’s largest cryptocurrency soared to $68,990 last November. Now it is around $29,500 – a staggering 57% pullback from the high.
If the downtrend continues, Rich Dad Poor Dad author Robert Kiyosaki says he’s ready to start buying.
“Bitcoin crash. Great news,” he tweeted recently. “Waiting for bitcoin to fall to 20k. Will then wait for the bottom test which could be $17,000. Once I know the bottom is in, I back the truck up. Accidents are the best times to get rich.
Kiyosaki added that bitcoin “is the future of money” and its bottom could be even lower at $11,000.
In today’s market environment, it’s not easy to be a contrarian investor. But if you share Kiyosaki’s view, here are three easy ways to capitalize on bitcoin’s potential rebound.
Buy bitcoins directly
The first option is the simplest: if you want to buy bitcoin, just buy bitcoin.
There are many platforms these days that allow individual investors to buy and sell cryptos. Just be aware that some exchanges charge up to 4% commission fee for each trade. So look for apps that charge little or even no commission.
While bitcoin today commands a five-figure price, there is no need to buy an entire coin. Most exchanges allow you to start with as much money as you are willing to spend.
Exchange-traded funds have grown in popularity in recent years. They are traded on the stock exchange, so it is very convenient to buy and sell them. And now investors can also use them to get a share of Bitcoin stock.
For example, ProShares Bitcoin Strategy ETF (BITO) began trading on NYSE Arca in October 2021, marking the first US bitcoin-linked ETF on the market. The fund holds bitcoin futures that trade on the Chicago Mercantile Exchange and has an expense ratio of 0.95%.
There is also the Valkyrie Bitcoin Strategy ETF (BTF), which debuted a few days after BITO. This Nasdaq-listed ETF invests in bitcoin futures and charges an expense ratio of 0.95%.
When companies tie some of their growth to the crypto market, their stocks can often move in tandem with the coins.
First, we have bitcoin miners. Computing power is not cheap and energy costs can be considerable. But if the price of bitcoin increases, miners such as Riot Blockchain (RIOT) and Hut 8 Mining (HUT) are likely to receive increasing attention from investors.
Then there are intermediaries like Coinbase Global (COIN) and Paypal (PYPL). When more and more people buy, sell and use crypto, these platforms will benefit.
Finally, there are companies that simply hold a lot of crypto on their balance sheets.
Example: MicroStrategy Enterprise Software Technologist (MSTR). It has a market cap of $2.3 billion. Still, its bitcoin count hit 129,218 at the end of March, a stock worth around $3.8 billion.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.