War, inflation and an economic crisis; it doesn’t look good at all. In a new tweet, the author of the well-known book Rich Dad Poor Dad shares 7 reasons why he thinks investing in bitcoin (BTC) is a good idea right now.
The US borrows too much money
You have certainly already seen it in one of our Premium analyses; the economy isn’t doing too well. Global inflation is high and threatens to contract further. Robert Kiyosaki, the author of the well-known Rich Dad Poor Dad book, is therefore a proponent of bitcoin.
His first point is the fact that the United States “borrows too much money.” For a long time, the US kept interest rates low, forcing it to borrow more dollars to buy bonds.
1. US borrows too much money. 2. US keeps interest rates low. 3. Low interest rates forces US to borrow more $ to buy more US Bonds 4. to keep interest rates low 5. Causes inflation 5. Forcing interest rates up 6. Debt becomes too expensive 7. US dollar dying. BUY GS Bitcoin
— therealkiyosaki (@theRealKiyosaki) September 18, 2022
According to him, this is one of the reasons that inflation is rising, forcing interest rates up, which in turn makes the aforementioned loans more expensive. From this, Kiyosaki draws the following conclusions: “The US dollar is dying,” adding:
“Buy gold, silver, bitcoin.”
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Bitcoin turns out not to be an inflation hedge yet
The amount of dollars (or fiat money in general) is actually endless. Central banks can print unlimited money to keep the economy going. However, this also means that inflation could be a major problem, as it is now.
Bitcoin, on the other hand, is scarce. This means that only a certain amount of bitcoins will come into circulation. For this reason, crypto is often seen together with gold as the figurehead of inflation hedges. An investment in bitcoin could protect you from the depreciation of normal money.
But if you take a close look at the bitcoin chart, you will notice that bitcoin has actually decreased in value. Although many investors mainly look at the longer term. Gold has also not appreciated during the ongoing malaise. Gold has been down about 20% since its March high.
