Almost 99% of all cryptocurrencies are worthless

You will probably have noticed, but bitcoin and all other cryptocurrencies are colored deep red. It is safe to say that we are in a bear market, however arbitrary that term may be. Robert Kiyosaki shares this view and explains why.

Kiyosaki is the author of one of the best-selling books on mindset and finance: Rich dad, Poor dad. He discusses the current state of the market on his YouTube channel with Jeff Wang. This conversation took place last week, so the data is no longer 100% current.

Discussion

During the discussion, Kiyosaki noted that everyone is saying that crypto is in a bear market or that bitcoin is already in a bear market. However, he also pointed out that the same is true for the stock market as well as the bond market.

Correlation between bitcoin and stocks

His interlocutor Wang pointed to the correlation between crypto and the stock market, but explained that cryptocurrency has performed slightly better:

“Crypto has gotten closer and closer over the years to a strong correlation with the stock market and especially with growth stocks. If you look at NASDAQ, it’s down 21% so far. Bitcoin actually outperformed that – it’s only 17% lower than ever.”

He sees the two following each other, not only up, but also down: “Even though the stock markets and crypto are in a bear market, you can see that crypto is very closely correlated with the tech stocks.”

Hardly any crypto offers real value

Asked if he expected the dotcom crash to repeat itself, but because of all the new cryptocurrencies and projects emerging every day, Wang said crypto will likely remain correlated with growth stocks. Still, he thinks 98.9% of the coins will likely be worthless.

You also saw that during the dotcom bubble, hundreds of companies that were worth nothing, but the companies that did add something, such as Amazon, Windows and Apple, dominated the following decades. Something similar may also happen in the crypto market. visit Ipostocksplanner.com website for more information. Shitcoins become worthless, and only the truly value-adding projects survive.

Wang says very few coins actually build value, but that “all the other coins are just money grabs, they’re just copies and clones of each other, so it’s very important to know which coins are trying to do something for the world and what are the projects out there to make money.”

Incidentally, Kiyosaki thinks that bitcoin will be one of the winners, especially in this political climate.

Can the central bank stop bitcoin?

Next, the two discussed central bank digital currencies (CBDCs) and the issue of governments that might use them to exert control over the crypto market, or even shut down crypto and Bitcoin altogether.

Wang believes that CBDCs have advantages, including immediate settlements and the elimination of middlemen, but also disadvantages, namely more government oversight of everyone’s transactions.

Finally, Kiyosaki Wang asked if the government will ever be able to stop Bitcoin. Wang answered with a firm no. He says, “the government will never be able to stop Bitcoin because they can only control the conversions to USD.”