Blog | Cryptocurrency

Bitcoin Superpower

Profiting from the rise of the Decentralized-Age

During the Cold War, there were two superpowers: The United States and the Soviet Union. Today, the Internet makes the idea of a borderless world and a global economy a reality.

Today, the electronic herd, which is the thousands of fund managers who control great sums of money, has the power to affect world politics more than politicians do. If the electronic herd does not like the way a country is managing their financial affairs, they will move their money elsewhere at the speed of light. It is not the politicians who have the power today, as they did in the Industrial Age. In the Information Age, it is the power of global digital money that often dictates a country’s affairs.

When Bill Gates crossed the border from the United States to Canada some years ago, the customs agent asked him if he had anything of value to declare. He pulled out a stack of floppy disks wrapped in rubber bands. “This is worth at least $50 billion,” he said. The customs agent shrugged, thinking he was talking to a nut and let the richest man in the world pass through the border without paying anything in taxes. The point is that the bundle of floppy disks wrapped in rubber bands really was worth at least $50 billion. That bundle of floppy disks was the prototype of Microsoft’s Windows 95.

Super-rich individuals like Bill Gates often have more money and more influence over the world than many large nations. Such power caused the U.S. government to take Gates to court for monopolistic practices. When that case started, a friend of mine said, “The frightening thing is that Gates can afford to hire better attorneys than the U.S. government can.” That is because the U.S. government is an Industrial-Age institution, and Gates is an Information-Age individual.

Following this line of thinking, George Soros believes that many corporations have much more money and power than many Western nations. That means there are corporations today that could damage the economy of an entire nation just to benefit a few shareholders. That is how much power many corporations have.

In the years ahead, many changes, both good and bad, will occur. Old and obsolete businesses are being wiped out. Competition, as well as the need to be cooperative, will increase. Younger companies are buying out older ones. These changes are all happening because the genie known as technology has been released from the bottle, and information and technology are now cheap enough for everyone to afford.

Now technology has reached money. Money has been digital for a long time, but with the creation of block-chain and cryptocurrency money is following the George Soros path. Money, through cryptocurrency, is becoming borderless. It is very likely that some cryptocurrencies will be worth much more than all the Western money and the U.S. dollar combined.

Money without borders and without government control will change the entire world. Blockchain may take us out of the Information-Age and bring about the Decentralized-Age.

That is why I have the crypto expert who provides the education and picks in our Rich Dad Cryptocurrency Newsletter, Jeff Wang. Jeff understands this Decentralized-Age. And he creates educational videos about it in our newsletter. I’ve asked Jeff to discuss events from weeks ago to show the changes of the ages.

Jeff Wang

Not too long ago we witnessed another absolutely crypto-crazy week.

Why am I talking about events from a past week? It shows how Robert’s Decentralized-Age may be coming.

The week’s craziness began due to the volatility of the financial world’s bond markets, stock markets and crypto markets.

The first bit of news is that we had a pretty volatile stock market week. The bond yield became 1.755. If you look at the 10-year treasury bond, you’ll notice that it had kept inching up in value. The bond market is roughly 500 times the size of the entire stock market. What this means is a lot of money that would get invested in stocks and crypto was being diverted to the bond market. The bond market is considering the safest place to put your money.

To clarify further, the bond market rising is very, very dangerous for stocks and crypto, mainly because it gives the huge billion-dollar asset managers and fund managers another gateway to throw their money in.

With this rise in the bond market, it becomes more favorable to diversify “growth stocks” which tend to invest risky investments, into “value stocks and bonds” which are considered much safer investments.

Note: notice how the investors are moving their money between asset class, just as Robert often talks about.

At the same time, we also saw the dollar inch up in strength.

So, the dollar began strengthening, which is bad for Bitcoin and gold because they are hedges, or insurance, against a falling dollar.

So, what do investors do when the dollar becomes more valuable? They reduce their Bitcoin and gold investing because a hedge becomes less important.

Basically, all signs looked bearish for crypto. But then the news came in. News from the Information-Age, explaining the ushering in of the Decentralized-Age.

Even with stocks being dumped, the week had 30 billion stock sale over the weekend. We had banks warning of significant losses as they had huge positions in many of the stocks being dumped. Many of these banks had levered leverage positions that were getting hit hard with the volatility.

1. China proposed central bank, digital currency rules. Meaning China may come out with a cryptocurrency. They are kind of setting the precedent of how a cryptocurrency can behave globally. This is very big news.

   I believe this will reduce the strength of the dollar. Why? Because China, one of the world’s largest economies, will suddenly become less dependent on the world’s currency, the dollar. This will weaken the dollar and thus increase the strength of cryptocurrencies, especially Bitcoin.

2. Fidelity announced they want to launch a Bitcoin ETF. Basically, all the big financial players want to get on the Bitcoin game by making it accessible to the public. Fidelity is not stopping with ETFs. They are also bringing Bitcoin collateralized loans so people can come in to deposit Bitcoin and get loans.

3. Then it is announced that Tesla is adding to the Bitcoin support. You are now able to buy Tesla cars with a simple Bitcoin button. You can deposit Bitcoin and they actually will keep the Bitcoin as itself. Most retailers would convert that to cash immediately, but Tesla says they just don't care. They are going to hold the Bitcoin in their treasury.

4. Finally, PayPal came in. Now when you go online, to pay with PayPal, you can choose to pay with the cryptocurrency on your account. This is important because PayPal is set up with millions and millions of retailers. To understand this more clearly, understand that nearly all retailers and stores are now able to accept crypto as a form of payment.

   

   Cryptocurrencies are no longer something to hold on to as an asset, it is now an actual currency. It is now able to be used by everyone.

   All this news, Tesla, Fidelity, PayPal and more caused a bearish crypto week to turn into a bullish crypto week. It looks like cryptocurrencies are here to stay.

Robert Kiyosaki

Thank you, Jeff.

Do you see the end of the dollar? The rise of the Decentralized currency? As we leave the Information-Age, countries will try to hold on. Notice how China is making their own cryptocurrency. But they are using old thoughts. When a country creates a cryptocurrency, it is not decentralized. It is merely the Information-Age trying to disguise itself as the Decentralized-Age.

Whenever Ages change, chaos and confusion comes with the change. Decades ago, people could not comprehend the internet. Those that could were leaps and bounds ahead of the Industrial-Age investors and Capitalist. I predict the same will happen with the Decentralized-Age.

Better get educated so you can be leaps and bounds ahead of the world. Better learn about cryptocurrencies now.