Rich Dad Poor Dad Author Lists 7 Reasons to Buy Bitcoin
Robert Kiyosaki – author of the famous personal-finance book “Rich Dad Poor Dad” – has come out with another enthusiastic statement in support of cryptocurrency.
The author listed 7 reasons why his followers should invest in Bitcoin and precious metals – centered around the United States government’s current financial position.
How the U.S. Dollar Dies
As reads Kiyosaki’s tweet, the first reason to invest in Bitcoin is that the U.S. “borrows too much money.” According to the US National Debt Clock, the nation is now up to nearly $31 trillion in debt. Meanwhile, U.S. GDP stands at just $24.8 trillion, leaving the country’s debt to GDP ratio at 137.76%.
Next, Kiyosaki cited the country’s intent to “keep interest rates low.” Interest rates were taken to historically low levels throughout 2020 and 2021, spurring a bull market for both Bitcoin and stocks.
However, keeping interest rates low requires the Fed to buy Treasury bonds and expand its balance sheet. This leads to the fourth reason for buying Bitcoin: inflation.
U.S. annual CPI inflation has been on the rise since 2021, peaking in June at 9.1%. However, the figure has reigned in somewhat over the past two months thanks to tightening Federal Reserve policy through rising interest rates – which have bloodied crypto and equities markets in the process.
Inflation and Recession
As the author points out, higher interest rates lead to more expensive debt across the board. Market analyst Nicholas Merten from DataDash noted Monday that Fed policy is now driving up the cost of shelter. According to Merten, this could lead to “depressionary levels of recession.”
Indeed, the U.S. already confirmed recession status in July after clocking in two consecutive quarters of negative GDP growth.
Some crypto bulls have expected the Fed to return to loose monetary policy in the face of such market turmoil. This would presumably lead back to higher crypto/ asset prices and a weakening dollar. Kiyosaki thus arrives at his final position – that the U.S. dollar is dying.
“BUY G-S-Bitcoin,” he concluded.
Gold, silver, and Bitcoin are often lumped into the same bucket as forms of “sound money” – money that is reliability scarce, and thus cannot be debased. This makes them resistant to inflation, unlike dollars – which exponentially expanded in supply over the past 3 years.
Kiyosaki has previously recommended that followers invest in the same basket of goods while including Ethereum on some occasions.
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