Crypto

R.Kiyosaki claims Bitcoin is driving the U.S. dollar into obscurity

Kiyosaki’s Endorsement of Alternative Investments

Renowned author of ‘Rich Dad Poor Dad,’ Robert Kiyosaki, has once more vocalized his backing for alternative investment avenues, such as Bitcoin (BTC), gold, and silver. He argues that these assets are revealing the inherent weaknesses of the U.S. dollar.

Economic Principles Supporting Bitcoin’s Rise

To bolster his argument, Kiyosaki pointed to two pivotal economic concepts—Gresham’s Law and Metcalfe’s Law—underscoring Bitcoin’s increasing prominence in a social media post on January 25.

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Gresham’s Law: Good Money vs. Bad Money

Kiyosaki illustrated Gresham’s Law, which posits that “bad money drives out good money,” by highlighting how gold and silver have historically been stockpiled as a reaction to the declining value of the U.S. dollar. He further asserted that Bitcoin has joined the ranks of this “good money,” challenging the legitimacy of the “artificial U.S. dollar.”

“When inferior currency infiltrates a system, superior currency retreats into hiding. Historically, gold and silver have been concealed from counterfeit U.S. dollars. Today, gold, silver, and Bitcoin are pushing the fake U.S. dollar into obscurity,” he remarked.

Metcalfe’s Law: Network Power and Influence

Kiyosaki also referenced Metcalfe’s Law, which assesses the impact of networks, comparing Bitcoin’s growing acceptance to the global success of franchises like McDonald’s. He emphasized that the strength of networks enables smaller participants to gain influence and wealth, advocating for the embrace of capitalism through assets like Bitcoin.

Kiyosaki’s Negative Perspective on the Dollar

Kiyosaki’s views are in line with his longstanding skepticism about the dollar, which he has frequently labeled as ‘fake money.’ In this vein, he has persistently promoted alternative investments over conventional financial instruments.

As highlighted by Finbold, Kiyosaki recently expressed gratitude to Bitcoin investors for distrusting the U.S. government, Treasury, and Federal Reserve, which he dubbed a ‘Den of Thieves.’

With Kiyosaki continuing to predict an imminent economic downturn, he remains a staunch advocate for Bitcoin, gold, and silver as prime assets for safeguarding wealth in such circumstances.

Moreover, as Bitcoin achieves unprecedented highs surpassing $100,000, Kiyosaki assures that it’s not too late to invest in this leading digital asset. He forecasts that Bitcoin could potentially reach around $500,000 by 2025, describing it as a currency “designed to enrich everyone,” whether they are early adopters or newcomers.

Interestingly, Kiyosaki maintains that drops in Bitcoin’s price should be viewed as opportunities to acquire more of the asset.

Evaluating Asset Superiority

In this context, Kiyosaki regards all three alternative assets as equally valuable, dismissing the ongoing debate between Bitcoin and gold as a mere distraction. He suggests that such comparisons serve as diversions from the real issues at play.

Overall, Kiyosaki’s critique of traditional finance, particularly the dollar, potentially downplays the currency’s role as the prevailing global reserve currency. While there might be a potential for Bitcoin, gold, or silver to challenge the dollar’s dominance, which offers a diversification strategy, the U.S. dollar remains a formidable force in the financial world, despite possible inflationary pressures.
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author avatar
Emma Horvath
After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories. I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology. My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

Emma Horvath

After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories. I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology. My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

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