Robert Kiyosaki warns cryptocurrency investors to be cautious and avoid emotional decisions when Bitcoin reaches new highs.
Bitcoin has just broken the 117,000 USD mark, predicted to potentially rise to 124,000 USD or higher. Kiyosaki advises investing strategically instead of chasing FOMO, while patiently waiting for the market to adjust to buy at a better price.
MAIN CONTENT
"Banana Zone" refers to the time when cryptocurrency prices rise rapidly, easily leading to poor investment decisions.
Kiyosaki emphasizes the necessity of investing smartly based on strategy, avoiding trading based on crowd mentality.
The growth potential of Bitcoin is still strongly expected due to its scarcity and anti-inflation role.
"What is the 'Banana Zone' and why is it dangerous for cryptocurrency investors?"
"Banana Zone" is a term coined by Real Vision CEO Raoul Pal, referring to the period when the price of assets like Bitcoin skyrockets rapidly, becoming unstable due to very high demand while supply is limited.
Robert Kiyosaki agrees with Raoul Pal on this characteristic and warns that this is the time when FOMO is easily triggered, as new investors can easily get caught up in the trend of buying en masse without thorough analysis.
Effective investing is not about bottom fishing or peak chasing but about patiently waiting for opportunities to buy at reasonable prices after the market adjusts.
Robert Kiyosaki, author of Rich Dad Poor Dad, June 2024
The 'Banana Zone' cycle often leads to strong participation from institutions, media, and individual investors, creating significant volatility and increased risk. According to Kiyosaki, these are conditions that cause many newcomers to be 'emotionally manipulated', leading to mistakes in buying and selling.
Why does Kiyosaki believe that investing based on emotions always leads to losses at market peaks?
Kiyosaki emphasizes: 'Don't be a HOG (hungry pig), because HOG will be 'butchered'. Be a PIG (fat pig), because PIG can accumulate long-term profits.' He encourages investors to stay calm and avoid chasing after hot price surges.
When Bitcoin prices continuously rise, FOMO can cause inexperienced investors to pour money in at the highest point, creating a subsequent devaluation effect that heavily impacts their assets.
The desire to buy at the peak only causes investors to suffer heavy losses. Strategy and patience are the keys to long-term success.
Robert Kiyosaki, June 2024
Current situation and growth forecast of Bitcoin according to expert Kiyosaki
When Bitcoin reached 118,000 USD, many analysts and optimistic investors saw this as the beginning of a long-term bull market cycle. Some forecasts even reach 250,000 USD by the end of 2025 and 1 million USD by 2030.
Kiyosaki actively supports Bitcoin as a cryptocurrency 'for the people', used to combat inflation, thanks to limited supply and characteristic decentralization. He bought Bitcoin when the price was only 6,000 USD and made significant profits thanks to strategic and patient investing.
Real-life example of Kiyosaki's investment strategy
He stated that he purchased Bitcoin around 110,000 USD during the recent surge, based on the belief that the market still has a long-term upward trend. With a proactive plan to wait for the market to adjust, he avoided falling into the trap of buying at the peak that many new investors experienced.
Why is Bitcoin considered an effective anti-inflation tool?
According to Kiyosaki, Bitcoin has a fixed supply of 21 million Coins, completely different from fiat money that can be printed at will, causing devaluation. This makes Bitcoin a choice for many investors and institutions as 'digital gold' to protect assets against the devaluation of fiat currency.
Criteria Bitcoin Fiat Money Supply Limit 21 million Coins Unlimited, can be printed more Decentralization Yes, controlled by the Blockchain network Central decision Anti-inflation High possibility due to fixed supply Low due to unlimited printing
Kiyosaki's advice for current cryptocurrency investors
In addition to patiently waiting for price corrections to buy, Kiyosaki emphasizes the importance of equipping oneself with knowledge and not following the crowd. He advises investors to refer to reports, in-depth studies, and build strategies based on real data.
Avoid rushing to participate when Bitcoin prices are skyrocketing as it can severely damage your account due to extreme volatility afterwards.
Frequently Asked Questions (FAQ)
"What is the 'Banana Zone'? This is the phase when cryptocurrency prices rise very quickly, often causing FOMO psychology leading to unwise trading decisions.
When should one invest in Bitcoin? According to experts, it is advisable to buy when the market has adjusted, avoiding buying at peak prices due to high risk.
Why is Bitcoin called an anti-inflation tool? Bitcoin has a limited supply, cannot be printed more, retaining value better than fiat money.
How to avoid being 'butchered' in the cryptocurrency market? Invest based on thorough research, be patient, and do not follow the crowd mentality.
When did Kiyosaki buy Bitcoin? He bought Bitcoin when the price was around 6,000 USD, choosing a long-term investment approach.
Source: https://tintucbitcoin.com/bitcoin-canh-bao-fomo-gia-124-000-usd/
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