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‘Invest with Inflation, Not against It,’ Says Robert Kiyosaki

UTC by Steve Muchoki · 3 min read
‘Invest with Inflation, Not against It,’ Says Robert Kiyosaki
Photo: Gage Skidmore / Flickr

Kiyosaki believes Bitcoin price will continue soaring up as high as $500k in the coming years, purely fueled by inflation.

The author of Rich Dad Poor Dad, Robert Kiyosaki, has reiterated his investment strategy against global inflation. During a CNBC interview, Kiyosaki noted that global inflation has become a systemic problem. As a result, the veteran investor advised people to double down on commodities like Gold, Bitcoin, Silver, and real estate. Kiyosaki noted that he is mostly interested in the rising prices of food, gasoline, real estate, and gold.

Consequently, the investors noted that he does not mind getting into debt to acquire either of these commodities as inflation will pay back. For instance, Gold prices have been on the rise since bottoming out in October last year. According to the latest market data from TradingView, Gold price has gained about 11 percent YTD to trade around $2026 on Tuesday.

On the other hand, Bitcoin price, which is considered digital gold, has risen more than 66 percent YTD. Interestingly, Kiyosaki noted that he does not invest in market equities with exceptions on the few companies that he has taken public through initial public offerings (IPO).

In conclusion, Kiyosaki noted that the banking industry is on the cusp of collapse amid the rise of fintech and the cryptocurrency market. Furthermore, the investor believes that the United States dollar is collapsing against other global currencies including digital assets.

Kiyosaki on Banking Failures and Inflation

Notably, the investor highlighted that Fed Chair Jerome Powell is not serious about his fight against inflation, which will come at a significant cost to the fiat holders. Furthermore, Kiyosaki insisted that the banking failures already experienced in the United States are partially due to Fed’s financial mistakes.

“The whole system is in trouble. My biggest concern is that inflation is now systemic. When Powell said it was transitory, that was a lie,” Kiyosaki said.

Moreover, the United States has recorded the highest banking failures YTD compared to other global markets. Notably, several regional banks in the United States have been assimilated by larger banks like JPMorgan, and Bank of America. Some of the victims include Silicon Valley Bank, Signature Bank, and recently First Republic Bank.

In all the instances, the banks have cited a sharp decline in overall deposits, thus causing bank runs. Fintechs like Coinbase Global Inc. (NASDAQ: COIN) have taken over the banking sector with digital assets like Bitcoin that offer higher returns over time.

Previously, Kiyosaki issued Bitcoin’s price forecast, whereby the investor sees the asset hitting $100k and $500k in the near future fueled by inflation.

Nevertheless, crypto firms in the United States have complained of the lack of a proper regulatory framework to support the nascent technology. Already, several crypto firms including Ripple and Coinbase have expressed their interest in fleeing the United States market. Recently, crypto firm Bittrex announced its closure of business in the United States following the charges by the SEC.

Bitcoin News, Cryptocurrency News, News
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