Robert Kiyosaki, known for his popular “Rich Dad Poor Dad” book series, commented on the recent decline in Bitcoin (BTC) prices on June 25, 2024, and shared insights into his investment strategy.
Kiyosaki noted, “Most people should sell BTC, but I am waiting for an opportunity to buy more,” indicating that instead of considering selling, he is looking for opportunities to purchase Bitcoin at lower prices.
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The Importance of “Tax Issues” in Cryptocurrency Trading
While most people tend to aim for profits through cryptocurrency trading, Kiyosaki points out that “taxes,” particularly “short-term capital gains tax,” become an issue when trading.
(*1) Capital Gains Tax: A tax levied on the profit made from the sale of an asset (capital gain).
Kiyosaki’s “Buy and Hold Forever” Strategy
Highlighting the tax issues in cryptocurrency trading, Kiyosaki explains that he adopts a strategy similar to Warren Buffett’s “buy and hold forever” approach.
Kiyosaki mentions that as a serial entrepreneur, he spends his time creating new assets, implying that he doesn’t consider selling Bitcoin but continuously looks for the right time to buy it cheaply.
This strategy minimizes psychological stress from short-term declines and eliminates the burden of filing taxes and paying taxes, allowing for the accumulation of assets purely from a long-term perspective.
Choosing the Right Method for Yourself
While Kiyosaki explains that his Bitcoin investment strategy is the “buy and hold forever” approach, he also emphasizes the importance of choosing the best method for oneself.
Specifically, he advises, “If you are afraid of a crash, you should sell and focus on your job,” explaining that “this is what most employees should do.”
Given the significant price volatility of cryptocurrencies, it is generally recommended to invest only a manageable amount of surplus funds. If you feel anxious to the point where it affects your job due to price declines, it might be necessary to reconsider and adjust your investment amount, as Kiyosaki suggests.
On the other hand, if you can continue investing an amount that doesn’t make you worry about slight declines, you might consider adopting Kiyosaki’s “buy and hold” strategy to reduce the burden of tax filings and payments.
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