‘Rich Dad Poor Dad’ author Robert Kiyosaki has predicted a fiat crisis in the future in which a form of cryptocurrency will become the solution to a huge US dollar bubble.
Kiyosaki co-wrote the book in 1997, advocating the importance of financial literacy, financial independence and building wealth through investing in assets, real estate investing, starting and owning businesses, as well as increasing one’s financial intelligence to improve one’s business and financial aptitude.
Kiyosaki says that the dollar is on its last legs in the long-term financial scenario and his predicted economic crash, for which “foreshocks are sounding right now”, will be bigger than 2000 dot.com crash and the subprime real estate crash of 2008.
Kiyosaki says the really big one will be driven by the growth of quantitative easing in the US causing massive inflation of the US dollar. He suggests that his next book will be entitled ‘Fake’ due to the amount of “fake” fiat money currently circulating. The author cites Nixon’s decision in 1971 to unpeg the dollar from the gold standard as a crucial historical error, as it opened the door to printing money, driving many on a quest for alternative assets such as gold and silver.
He suggests that an exodus away from the dollar in the next crash will bring cryptocurrencies firmly into play, referring in a recent Sane Crypto Podcast to cyber currencies, a similar concept to cryptocurrencies, as the future, suggesting that mass adoption of these will also contribute to the fall of fiat.
“I think we’re watching the end of the dollar,” said Kiyosaki. “That’s what I’m saying.”
Sara Ceraldi, writing in Real Clear Science, argues that cryptocurrency has been warmly welcomed in America due to the idea of taking power out of the hands of financial institutions and giving it to the people. She says Bitcoin has become “us” as opposed to the institutional dollar representing “them”. Ceraldi explains:
“It harkens back to classic American heroes and morality tales: the cowboy, exalted for braving new frontiers on the fringes of society; the superhero, pursuing justice outside of a broken system; and, of course, the underdog.”
She argues that right now the dollar may well be safe but other countries have shown that state currencies can bow to pressure and look for an escape. Kiyosaki’s big event may be just the kind of impetus that Bitcoin is waiting for. The internet has changed everything. As Ceraldi suggests:
“In the wake of all this connectivity has come a tidal wave of new ways to use money… and the evolution of cryptocurrencies around the globe has set the stage for a redefinition of the social rituals of the financial world as we know it.”
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