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“Rich Dad Poor Dad” Author Kiyosaki: Bullish on Gold & Bitcoin

#OhNoCrypto Bitcoin vs Gold

Over the past few weeks, the Federal Reserve of the United States has done everything in its power to stave off the adverse economic and financial effects of the coronavirus crisis; the central bank has injected $1 trillion into the repo market each day to ensure the financial system stays afloat, it has begun to buy billions of dollars worth of bonds to keep companies financed, and it has rapidly dropped its policy interest rate to 0%. 

Importantly, it isn’t only the Federal Reserve; every central bank around the world has been enacting similar plans to try and ease the global economy.

According to Robert Toru Kiyosaki, an American businessman best known for writing the famous Rich Dad Poor Dad book on personal finance, this is astronomically bullish for Bitcoin and gold.

Central Bank Action Is Proving Value of Gold & Bitcoin: Personal Finance Guru

Kiyosaki explained that with the Fed “counterfeiting […] trillions of fake dollars – $82 billion a month to $125 billion a day” and interest rates at 0%, it makes sense to save “gold, god’s money, or Bitcoin, people’s money,” rather than the fiat dollars that don’t yield anything and are being constantly debased.

This concept was explained by Dan Morehead of Pantera Capital:

As governments increase the quantity of paper money, it takes more pieces of paper money to buy things that have fixed quantities, like stocks and real estate, above where they would settle absent an increase in the amount of money. I think they will do that. The corollary is they’ll also inflate the price of other things, like gold, bitcoin, and other cryptocurrencies.

Morehead concluded that with this macro backdrop, the leading cryptocurrency will likely set a new price high “in the next 12 months,” adding that rapid growth that some bulls expect “is not going to happen overnight.”

Bitcoin Interest Is Booming

Considering Kiyosaki’s sentiment and the broader narrative push towards alternative investments, it should come as no surprise that interest in Bitcoin is booming. Really.

Even my nearly-90-year-old grandfather called me up last weekend, asking if I could digitally walk him through how he could buy “a little bit of” Bitcoin and Ethereum and how he could store the cryptocurrency. I’m not kidding you — this really happened.

As reported by Blockonomi previously, leading cryptocurrency exchange Coinbase reported that during the now-infamous Black Thursday crash (through which Bitcoin lost 50% of its value in a single 24-hour time period), the exchange saw a dramatic surge in buying interest for cryptocurrency:

“But beyond just a rush, two things are clear: customers of our retail brokerage were buyers during the drop, and Bitcoin was the clear favorite. Our customers typically buy 60% more than they sell but during the crash this jumped to 67%, taking advantage of market troughs and representing strong demand for crypto assets even during extreme volatility.”

The U.S.-based Kraken corroborated this narrative, writing in a recent tweet that the exchange “recorded an 83% rise in signups, and a 300% increase in verifications” over the past few weeks.

Not to mention, according to industry news aggregator Unfolded, the market capitalization of Tether’s USDT stablecoin recently surpassed $6 billion, with $1 billion added to this metric in the past two weeks alone. Furthermore, alternative stablecoin solutions — Paxos Dollar, USD Coin, Binance USD, etc. — have been printing dozens of millions of coins, too.

With all this in mind, It’s clear that despite the poor price action seen over the past few weeks and the rapidly-worsening economic crisis, there somehow remains a vast amount of interest in Bitcoin and other digital assets.

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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nick Chong, @Khareem Sudlow