# Kiyosaki's Views on Bitcoin: A Cautionary Insight
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Chapter 1: The Controversial Figure of Robert Kiyosaki
Robert Kiyosaki, a prominent entrepreneur, is known for his contentious business practices. He has a history of dissolving companies while leaving behind significant debts owed to suppliers. His educational materials often advocate taking on debt as a means to evade taxes. In a notable legal case, a jury mandated that Kiyosaki's Rich Dad Company pay $23.6 million, ruling that a portion of his earnings should have been allocated to the Learning Annex, a promotions company he previously engaged.
The Learning Annex significantly elevated Kiyosaki's profile, arranging major events, including a high-profile engagement at Madison Square Garden. Unfortunately, Kiyosaki entered into a clandestine agreement with a rival promotion firm, ultimately denying the Learning Annex the profits they were entitled to. Bill Zanker, the founder of the Learning Annex, later stated, "I took Kiyosaki’s brand and made it bigger. The deal was I would get a percentage of speaking engagements, and he reneged. We had a signed letter of intent. The Learning Annex was his greatest promoter."
This background is not intended to vilify Kiyosaki but serves as a caution for those considering following his financial advice. His business ethics warrant scrutiny.
Section 1.1: Kiyosaki’s Stance on Bitcoin
Recently, Kiyosaki has been vocal about cryptocurrencies, particularly Bitcoin, labeling it a prime buying opportunity. He has suggested that Bitcoin's value might decline to around $10,000.
Kiyosaki asserts, "BITCOIN? WORRIED? No. I am a Bitcoin investor just like I am an investor in physical gold, silver, and real estate. I am NOT A TRADER or flipper. When BITCOIN hits a new bottom, $10 to $12k? I will get EXCITED, not worried. I bet against the Fed, Treasury, and Biden, & bet on Bitcoin."
The first video, titled "YOUR CASH IS WORTHLESS, AND HERE'S WHAT YOU CAN DO ABOUT IT – Robert Kiyosaki," delves into Kiyosaki's perspective on the devaluation of cash and offers insights into alternative investment strategies.
Section 1.2: Kiyosaki's Investment Philosophy
Kiyosaki's philosophy on savings is equally provocative. He recently claimed that "if you’re a saver, you’re a loser," arguing that with inflation on the rise, traditional saving methods are futile. He believes that investing in "real money," such as Bitcoin, is essential.
In his words: "SAVERS ARE LOSERS. 25 years ago, in RICH DAD POOR DAD, I stated savers are losers. Today, US debt is in the hundreds of trillions. REAL INFLATION is 16%, not 7%. The Fed raising interest rates will destroy the US economy. Savers will be the biggest losers. Invest in REAL MONEY. Bitcoin."
Subsection 1.2.1: Dollar-Cost Averaging Explained
Kiyosaki supports a strategy known as dollar-cost averaging, which involves investing a fixed sum at regular intervals, regardless of current prices. This method can help mitigate the effects of market volatility, making it a viable option for long-term investors. However, it does not guarantee profit or safeguard against losses.
Section 1.3: Categories of Bitcoin Participants
Kiyosaki categorizes Bitcoin participants into three groups: Investors, Traders, and Speculators. He emphasizes that while each group has its place, traders often profit until market crashes occur, and speculators gamble on price increases. True investors, according to Kiyosaki, buy more during price dips.
In a recent tweet, he reiterated the importance of timing investments: "BUYING OPPORTUNITY: if the FED continues raising interest rates, the US dollar will strengthen, causing Bitcoin prices to drop. BUY more. When the FED pivots and lowers interest rates, like in England, you smile while others cry. Take care."
Chapter 2: Diverging Opinions on the Market
Despite Kiyosaki's bullish outlook on Bitcoin, not all financial experts share his enthusiasm. Notably, Michael Burry, famous for predicting the 2008 housing crisis, warns of a prolonged period of sticky inflation, characterized by slow adjustments to economic changes.
Burry states, "Inflation appears in spikes. When the spike resolves, it won’t be because of Biden or Powell. It will be because that is the essence, the nature of inflation."
The second video, titled "Robert Kiyosaki Exposes The System That Keeps You Poor & The Downfall of The USA | Rich Dad Poor Dad," elaborates on Kiyosaki's critique of the financial system and his views on economic resilience.
Final Thoughts
Kiyosaki is a masterful self-promoter who capitalizes on societal fears related to financial instability. His skepticism of government and claims that the stock market is rigged align perfectly with the narrative surrounding decentralized currencies like Bitcoin. While he presents compelling arguments, the lack of consistent business success raises questions about the validity of his teachings.
His accessible communication style and ability to simplify complex financial concepts first drew me to his work in my teenage years. His advocacy for purchasing assets over liabilities remains impactful. However, whether to invest in Bitcoin is a personal decision, and I resonate more with Burry’s outlook regarding the market’s long-term challenges.
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This article serves as informational content and should not be construed as financial, tax, or legal advice. Always consult a financial advisor before making significant decisions.
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