The current state of the market has resulted in various opinions from financial experts like Robert Kiyosaki. As the bearish streak on the entire crypto market emerges in tandem with bitcoin (BTC) and ethereum (ETH) becoming more and more pronounced, many market participants are starting to wonder whether or not the crypto market will remain viable in the long run.
What is Going to Happen in the Market?
Jeff Wang, a contributor to the Rich Dad crypto newsletter and editor-in-chief of the Rich Dad crypto newsletter, chatted with Robert Kiyosaki, writer of Rich Dad, Poor Dad, on his YouTube channel on May 11.
Kiyosaki pointed out in the discussion that although everyone says that crypto is in a bear market or that Bitcoin is in a bear market, he continued by stating that the stock market, as well as bonds, are in a bear market.
On top of that, Wang discussed the correlation between crypto and the stock market, as well as crypto’s advantages over the other, and explained that:
“Crypto over the years has gotten closer and closer to being extremely correlated with the stock market and particularly growth stocks. If you look at NASDAQ, it’s down 21% year-to-date. Bitcoin’s actually outperformed that – it’s only down 17% year-to-date.”
It could be concluded that despite the bear market the stock markets are experiencing and the crypto market as well, crypto is tightly tied to tech stocks.
Several crypto coins and projects have been popping up every day, and Wang was asked whether all of these new coins would be crushed by the same fate as the dot-com crash. He replied that crypto will probably remain correlated to growth stocks but that almost 98.9% of crypto will probably be worthless in the end.
It is important for the public to understand which coins are actually trying to do something good for society and what are the projects that only seek to make money, Wang said, arguing that when compared to some coins, all the others are just money-grabs. That is why, according to Wang, it is very important to know which coins are trying to do something for society versus those that are there just to make money.
During the course of the discussion, the topic turned from the digital currencies of central banks to the issue of governments potentially trying to exercise control over the crypto market using the central banks’ digital currencies or even trying to stop crypto and Bitcoin altogether as a result.
Wang believes CBDCs have some pros, such as instant settlements and the removal of the middleman, but also some cons, which include a greater level of government oversight of transactions in general.
Furthermore, Kiyosaki asked Wang whether he thought the government would be able to stop Bitcoin at any point in the future, to which Wang stated that the government can only control the conversions to USD but not the Bitcoin itself.