Robert Kiyosaki, author of the book “Rich Dad, Poor Dad,” believes inflation makes the poor poorer and the rich richer. In his explanation, the writer reveals that the rich collect gold, silver and Bitcoin.
Kiyosaki, a major critic of the dollar, has already compared the US currency to toilet paper, arguing that other countries were naive in exchanging their most valuable goods and services for “fake money.”
According to Nassin Taleb, another well-known writer, Kiyosaki should “stop talking nonsense”. Taleb argues that gold and silver have lost against the dollar in recent years, unlike what happened in the late 1970s. The writer is also a strong critic of Bitcoin.
Concerned about inflation, Robert Kiyosaki recommends buying Bitcoin
According to data released by the US government last week, dollar inflation is at 3.7% per year, almost double the Fed’s target of 2%. Although energy costs (fuel and electricity) have fallen, the price of food continues to rise month after month.
According to Robert Kiyosaki, inflation only affects the low and middle classes. In his explanation, the writer states that the richest can escape rising prices by investing in scarce assets.
“Inflation makes the poor and middle class poorer because they work and save in dollars. However, inflation makes the rich richer. Why? Because today’s rich people work and save in gold, silver and Bitcoin.”
INflation makes the POOR AND MIDDLE CLASS poorer because they work for dollars and they save. Yet INFLATION makes the RICH RICHER. Why? Because today’s rich work save for gold, silver and Bitcoin.
— Robert Kiyosaki (@theRealKiyosaki) October 18, 2023
Data from the Federal Reserve Economic Data (FRED) shows that the US monetary base (M2) is above $20 trillion. In January 2009, when Bitcoin launched, this number was only $8.2 trillion, i.e. an increase of 2.5x.
Although the US Federal Reserve has been struggling with inflation for at least two years, some investors believe the rate hike will have negative long-term effects, further weakening the dollar’s purchasing power.
Therefore, many believe that Bitcoin is a hedge against this monetary policy based on unbridled money printing. At the time of writing, Bitcoin is priced at $28,400, down 59% from its all-time high in 2021.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
