The famous author recommends the leading crypto Bitcoin among other precious metals as a hedge against the “dying” US dollar.
How does the US dollar die?
Robert Kiyosaki, author of the famous personal finance book “Rich Dad Poor Dad,” came up with another enthusiastic statement in support of the cryptocurrency. The author listed 7 reasons why his followers should invest in Bitcoin and precious metals, focusing on the current financial situation of the US government.
According to Kiyosaki, the first reason to invest in Bitcoin is that the US is heavily indebted. The nation is currently in debt of up to about $31 trillion, according to the US National Debt Clock. Meanwhile, the US GDP stands at just $24.8 trillion. Therefore, the country’s debt to GDP ratio stands at 137.76%.
Kiyosaki then voices the country’s intention to ‘keep interest rates low’. Interest rates have been drawn to historically low levels throughout 2020 and 2021. cryptocoin.comAs you follow, this has spurred a bull market for both Bitcoin and stocks. But keeping interest rates low requires the Fed to buy Treasury bills and expand its balance sheet. This leads to the fourth reason to buy Bitcoin: Inflation.
Annual CPI in the US has been rising since 2021. Accordingly, it peaked at 9.1% in June. However, in the process, the Federal Reserve stepped in and blooded the crypto and stock markets. CPI has fallen slightly in the last two months, thanks to the Fed’s tightening of policy with rising interest rates.
“What to buy: Gold, silver and leading crypto”
As the author points out, higher interest rates lead to more expensive debt across the country. Fed policy has now increased the cost of housing, market analyst Nicholas Merten of DataDash said on Monday. It’s possible that this is causing “depression-inducing stagnation levels,” according to Merten. Indeed, the United States followed two consecutive quarters of negative GDP growth. It then confirmed its recession status in July.
Some crypto bulls expect the Fed to return to loose monetary policy in the face of such market turmoil. This will likely lead to higher crypto/asset prices and a weakening dollar. Kiyosaki thus reaches its final position: the US dollar is dying. In this context, he concludes his words by saying “Buy gold, silver and Bitcoin”.
According to Kiyosaki, gold, silver and Bitcoin are often thrown into the same bucket as forms of “hard money”. By sound money is meant money that has a reliable scarcity and therefore cannot be devalued. This makes them resistant to inflation, unlike the dollar, whose supply has grown exponentially in the last 3 years. By the way, Kiyosaki previously included Ethereum in the basket in some cases.
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