Renowned author Robert Kiyosaki identified bitcoin as a security from economic decline, while attributing the devaluation of the United States dollar to poor financial management and inflationary policies.
Kiyosaki criticizes the U.S economy.
In one of his latest posts on X, Kiyosaki cited Fed Chairman Jerome Powell, Treasury Secretary Janet Yellen, along with a host of Wall Street bankers, as the contributors to the devaluation of the U.S. dollar. He highlighted how U.S policies lead to inflation, taxes, and manipulation in the stock market. Using his work through his book, Rich Dad Poor Dad, he represented the ways in which corporations receive better benefits from tax systems thus leaving individuals with lower income after taxation.
As far back as 2020, Kiyosaki predicted market manipulation arguing that it was not a normal fluctuation for the stock prices to move erratically. He asserted that these events stuck out beyond traditional market dynamics therefore challenging the soundness of the financial system.
Kiyosaki in his current views, despite the doubts in the past about whether bitcoin has some value, has identified bitcoin as an important component in a portfolio. In the year 2022, Kiyosaki emphasized bitcoin’s importance, especially against the backdrop of an impending recession that was bound to propel it into a huge price rally.
Read also: Robert Kiyosaki says “BYE-BYE Bitcoin”; Government will seize all cryptocurrencies
Kiyosaki has voiced fear of systemic inflation, which he would equate to an involuntary tax. According to Kiyosaki’s suggested approach to the inflationary challenge, investments in inflation-resistant assets comprising bitcoin, silver, and gold, are the way to go.
In November, with the precious metal prices on the rise, Kiyosaki reflected to his followers that they should move away from fiat currencies, calling them a prominent part of a “fake money program”.
He labeled the average saver as a “loser” in the current economic climate, advocating for alternative assets like gold, silver, and bitcoin.
Apart from endorsing bitcoin, Kiyosaki criticized government policies, attributing rising inflation and subsequent struggles to the actions of the “woke government.” He expressed his intent to convert more fiat assets into bitcoin and precious metals, foreseeing potential negative consequences of government actions.
As Kiyosaki expresses concern, the price of Bitcoin (BTC) has seen significant growth from its lows of $15,000 since 2023. This comes at a time when Richard X Dove, a Wall Street legend declares the U.S. dollar to be “finished” as world reserve currency.
Biden Administration’s Emergency Data Collection
In to bitcoin’s growing influence, the Biden administration has initiated an “emergency collection of data request” targeting bitcoin and crypto miners. This move has intensified speculations about a broader government crackdown on the industry.
Energy Information Administration (EIA) will collect data on energy usage by bitcoin miners, citing the potential for “public harm” due to the industry’s substantial energy consumption. This emergency survey has sparked concerns within the crypto community about government intervention, echoing warnings from figures like Florida governor Ron DeSantis.
Granbury, Texas Faces Challenges from Bitcoin Mining
Meanwhile, the local bitcoin mining operation in Granbury, Texas, has brought about disturbances, health issues, and environmental crises. TIME reports that the constant noise from mining facilities has led to complaints of migraines and sleep problems among residents, as well as wildlife disappearing from the area.
While Texas emerges as a hub for bitcoin mining due to its favorable conditions, the Granbury situation underscores the broader impact of crypto mining expansion on local communities, from environmental degradation to rising utility bills.
Coinbase analysts identify positive trends amidst market pressures.
Amidst concerns about government actions and local impacts, Coinbase analysts note positive trends in the broader cryptocurrency market. They highlight diminishing downward pressure, citing the completion of FTX’s bankruptcy estate selling substantial GBTC holdings as a significant factor.
Coinbase’s Weekly Market report indicates increasing net inflows into U.S. spot Bitcoin ETFs, averaging over $200 million daily in the past week. These trends contribute to a potentially more supportive trading environment.
El Salvador’s President Nayib Bukele clinches election victory.
El Salvador’s bitcoin-friendly President Nayib Bukele declares victory in the recent 2024 presidential election, as the official announcement is yet to be made by the electoral body. Bukele, backed by self-assured data, asserted securing over 85% of the votes and an anticipated 58 out of 60 Assembly deputies.
If the official results align with Bukele’s claims, he is poised to lead the nation until 2029. Known for his firm stance against gang crime, Bukele is anticipated to persist in championing bitcoin, a commitment reinforced by Vice President Felix Ulloa’s recent statement indicating the government’s intention to uphold bitcoin as legal tender in the event of re-election.
Bukele’s influence on El Salvador’s crypto landscape has been instrumental ever since the country announced and implemented the decision to make bitcoin its legal tender in September 2021. With a bitcoin portfolio currently valued at $131 million following a return of $3.6 million by December 2023, the nation has not only accepted bitcoin but invested in it.
The introduction of the “Freedom Visa” in December 2023, offering residency or citizenship for a $1 million investment in bitcoin or USDT, adds another layer to El Salvador’s innovative approach under Bukele’s leadership.
Read more: Bitcoin’s unsteady feet stir concerns amongst investors and analysts.
Bitcoin’s Future Challenges and Price Analysis
As bitcoin faces a ‘sell the news event’ and approaches its halving, DecenTrader warns of a potential fresh sell-off. Despite the current price increase to $42,542, analysts predict that bitcoin will test investors’ resolve before reaching an all-time high in 2024.
DecenTrader notes a month of sideways price action before the impact of the upcoming block subsidy halving takes hold. The short-term outlook includes the possibility of bitcoin dropping to $37,000, suggesting challenges for bulls in navigating market fluctuations.
Read also: What is bitcoin halving and why does it matter to crypto investors?
Read also: Is the next bitcoin halving in 2024 going to be the magic wand for a bullish run?
Credit: Solomon Victor is a Technical Analyst who is also knowledgeable about various aspects of blockchain and cryptocurrency.
