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'Rich Dad, Poor Dad' author backs bitcoin ahead of 'biggest crash' in history

·Writer
·3 min read
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  • CNHUSD=X
  • USD=X
  • CNH=X
  • BTC-USD
  • DX-Y.NYB

Robert Kiyosaki, author of New York Times bestseller “Rich Dad, Poor Dad” and founder of The Rich Dad Company, is sounding the alarm about an impending recession, recently tweeting a warning about an impending “biggest crash in world history.” He predicted that it would be a long economic downturn and encouraged people to buy and invest in gold, silver, and bitcoin (BTC-USD) while they can. 

Kiyosaki joined Yahoo Finance Live to discuss why he thinks a market crash is coming as well as his outlook for bitcoin and other stores of value.

“What [economist James Rickards] says is quite accurate—the next crash is basically an avalanche waiting for the last snowflake, and since 2008 all they've been doing is piling more debt onto the mountainside,” Kiyosaki said. “And they're just waiting for the next snowflake to hit. And that's going to be the biggest in world history. I thought COVID was it, but they just added more debt onto the avalanche site.”

In spite of all this, the Fed holds the view that this period of high inflation remains “transitory,” citing an accelerated economic recovery from the pandemic as businesses continue to reopen to full capacity.

NEW YORK CITY, NY - OCTOBER 10: Robert Kiyosaki attends Why We Want You to Be Rich: Two Men-One Message Authored by Donald Trump and Robert Kiyosaki New York City Press Coverage at Multiple Locations on October 10, 2006 in New York City. (Photo by Matt Carasella/Patrick McMullan via Getty Images)
NEW YORK CITY, NY - OCTOBER 10: Robert Kiyosaki attends Why We Want You to Be Rich: Two Men-One Message Authored by Donald Trump and Robert Kiyosaki New York City Press Coverage at Multiple Locations on October 10, 2006 in New York City. (Photo by Matt Carasella/Patrick McMullan via Getty Images)

Kiyosaki compared bitcoin, gold, and silver to the U.S. dollar and other fiat currencies, suggesting that he believes bitcoin and precious metals to be better stores of value to use as hedges against macroeconomic cycles. He noted that he was optimistic about crypto in spite of the recent crash, stating that he views it as an opportunity to buy more.

Kiyosaki stated that he believes it is not a question of “if,” but “when” the Chinese yuan (CNHUSD=X) and the U.S. dollar are substituted for cryptocurrencies such as the “Fedcoin.” Though he conceded that there are many predictions surrounding the adoption of such a currency for widespread use, he is keeping an open mind.

As for his advice on how people, especially young investors, can prepare for an impending crash, Kiyosaki says to “be an entrepreneur.”

“The thing I say to young people, because Yahoo is for young people, I would say be an entrepreneur,” Kiyosaki said. “Be a capitalist, and build a business that does well in crashes, booms, or busts.”

Kiyosaki also denounced the pursuit of living a “debt-free” lifestyle. According to him, borrowing money and investing it in assets such as real estate allow for a generation of cash flows while also creating a tax shield. Kiyosaki said he carries a lot of debt and owns a lot of real estate for these reasons.

“I'm not saying having a stock portfolio is right or wrong,” Kiyosaki added. “But there's other alternatives you can do if you just open your eyes and see how the rich are really getting richer.”

Thomas Hum is a writer at Yahoo Finance. Follow him on Twitter: @thomashumTV

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