Robert Kiyosaki talks about Bitcoin, Blockchain, Silver and Gold. Learn his strategies for building wealth with these innovative technologies.
Bitcoin what is it? What should you do with it??
In the video Robert talks about that fiat money is fake money, Gold & Silver is Gods money and Bitcoin and Crypto is the peoples money.
I like how he talks about that in all of history the ability to print money has never worked and has often ended very badly for the country and its citizens.
This happens because when a country starts to print money it becomes based just on supply and demand and therefore it will inflate as they continue to print more and more to keep up with the debt.
If you think about it you can only inflate a currency for so long before it becomes worthless and the countries citizens lose faith and find alternatives. If you look at the dollar, it has lost 95% of it's value in the last 100 years and will continue on this path.
As you probably know, the dollar used to be backed by gold, it is not anymore. Instead the US wants the whole world to transact oil in US dollars creating an artificial demand for our currency and a much easier ability to print money without hyper-inflating our currency.
Essentually the dollar and any other fiat currency is backed by nothing.
But wait what is Bitcoin backed by??
Bitcoin is not backed by anything either and that is why Robert called it the peoples money.
Bitcoin is essentially the peoples version of a fiat currency. (A currency backed by nothing)
So what give Bitcoin it's value??
Bitcoin is the same as any other fiat currency as it's value is based on supply and demand. There are only so many Bitcoins on the market and that number is decreasing over time as more people buy and hold Bitcoin for very long times. Bitcoin also is mined so some Bitcoin will be introduced back into the market through mining until Bitcoin hits it's 21 million Bitcoin cap. Bitcoins fixed supply ever is 21 million.
Bitcoins circulating supply is how many are actually out there on the market that are able to be bought. This is the number used for the supply and demand valuation.
Then there is demand. Demand for Bitcoin is how many people want to buy in.
Here is an example of supply and demand.
As supply increases, demand drops. As Demand increases supply drops.
We are currently still inflating on Bitcoin and other crypto currencies as the block reward begin to half.
Here is a website that you can check out to see all about block rewards and when they will next half.
https://www.bitcoinblockhalf.com/
As supply decreases over time it is defiantly in our best interest to hold on to Bitcoin and other cryptocurrencies as long as demand continues to increase the value can only go up.
Thanks for reading and I hope you are saving a large portion of your Bitcoin for the long term. Peace :)