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⚡Kiyosaki’s Call: Abandon Fake Assets🤙

Croxroad

19 Sep 2024 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🎗️ Robert Kiyosaki

Robert Kiyosaki, the author of "Rich Dad Poor Dad," has expressed his belief that Bitcoin’s price is on the verge of skyrocketing as the Federal Reserve moves to cut interest rates. He predicts that as rates fall, investors will abandon what he terms "fake assets," such as U.S. bonds, in favour of real assets like Bitcoin, gold, and silver. Kiyosaki has been vocal about the growing threat of inflation, particularly its impact on retirees, and has urged people to invest in tangible assets to protect their wealth.

In his recent social media post, Kiyosaki dismissed debates about whether gold or Bitcoin is the better investment, comparing it to people arguing over luxury cars while riding public transport. He stressed that those who take action now by buying real assets will benefit from the Fed’s interest rate cuts, while those who continue to debate will be left behind. He also likened the situation to the flight of capital from "fake assets" like bonds to safer stores of value, calling for immediate action.

Kiyosaki also highlighted the devastating effects of rising inflation on retirees, citing examples of his boomer friends whose 401(k) savings have been eroded. He attributes this to the Federal Reserve’s monetary policies, which he believes are making the rich richer while the poor and middle class struggle. As the cost of essentials such as food and housing continues to rise, Kiyosaki warns that more retirees will be forced back into the workforce. He emphasised that buying real assets is the best way to safeguard wealth in these uncertain times.

🍂 Glassnode Report

Bitcoin’s market is currently in a state of stagnation, with minimal capital inflows and outflows, according to an onchain analysis from Glassnode. The report highlights that this prolonged period of inactivity could be setting the stage for heightened volatility in the near future. Researchers Ukuria OC and Cryptovizart observed that the Realised Cap, a metric that reflects net capital flows into and out of the Bitcoin network, has remained flat over the last two months at $622 billion. This suggests that most Bitcoin transactions are happening at or near the original acquisition price, indicating a market in equilibrium.

The analysis also points to a tightening supply of Bitcoin as long-term holders, or “hodlers,” continue to dominate the market. The percentage of "Hot Supply"—coins held for less than a week—has dropped to 4.7% of the total network wealth, indicating a decrease in short-term trading activity. With fewer coins available for immediate transactions, the supply side is constricting, further reinforcing the influence of long-term holders. This trend resembles past periods of market consolidation, where an equilibrium between profit and loss-taking behaviours created an environment ripe for sudden price movements.

Despite the high levels of stablecoin liquidity, capital is not yet flowing into risk assets like Bitcoin. Glassnode's analysts suggest that this growing reserve of stablecoins, combined with the stagnant Bitcoin market, could fuel significant volatility once the next market shift occurs. Both short-term and long-term holders are largely inactive, with the Sell-Side Risk Ratio reflecting a market on the brink of a potential breakout or breakdown, depending on future catalysts.

⛏️ What is Bitcoin Mining?

Bitcoin mining involves securing the network by adding new transactions, or blocks, to the blockchain in chronological order. Miners use specialised software to solve cryptographic puzzles, and in return, they are rewarded with new bitcoins and transaction fees. Currently, the reward stands at 12.5 BTC, but this will gradually decrease as the total supply is capped at 21 million BTC by 2040. To maintain this limit, the puzzles become more difficult over time, ensuring that new bitcoins are issued at a controlled, predictable rate.

🤣 Crox Road Memes

“Bitcoin mining is not just about solving puzzles; it's about securing the network and ensuring the integrity of the blockchain.”

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