When it comes to personal finance and investing, it won’t be wrong to say, Robert Kiyosaki is a guru for many. The Investor, Entrepreneur, Financial Education Advocate and author of the book ” Rich Dad, Poor Dad “, Robert Kiyosaki has warned that in October a “great” financial collapse in the stock market may happen in October. At the same time, he also said that it can be a great investment opportunity.
In a message sent through his Twitter account, Kiyosaki said “Giant stock market crash coming October. Why? Treasury and Fed are short of T-bills. Gold, silver, Bitcoin may crash too. Cash is best for picking up bargains after a crash. Not selling gold silver Bitcoin, yet have lots of cash for life after the stock market crash. Stocks are dangerous. Careful”
The expert believes that using cash will be the best option to carry out operations after the fall of both bitcoin and gold happens.
Though he emphasized his belief– Bitcoin (CRYPTO: BTC), gold, and silver may crash– Kiyosaki did not forget to mention that he is not selling any of them and claimed to have “lots of cash” for life after the stock market crash.
To mention here, this isn’t the first time Kiyosaki has set alarm about a potential large-scale stock market being dashed.
Earlier in late July this year, he warned through his tweet—”The best time to prepare for a crash is before the crash. The biggest crash in world history is coming. The good news is the best time to get rich is during a crash. The bad news is the next crash will be a long one. Get more gold, silver, and Bitcoin while you can. Take care.”
Many of his followers believe Kiyosaki’s predictions of a giant market crash are yet to be realized.
Bitcoin Price Action:
Bitcoin traded at the range of $40,000-$50,000 in September. Since October 2020, the most popular digital asset’s price has appreciated by more than 300%.
Kiyosaki Thinks The dollar is dying
The possible reason why Kiyosaki promotes Bitcoins is that he wants to hedge against a deflationary dollar.
In a recent blog post, he expressed: “Unlike most, I am not using Bitcoin to make millions. I’m using Bitcoin to protect my millions as insurance from the collapse of the dollar. I see Bitcoin as digital gold.”
If you are asking yourself, why is he of this belief, then, it is quantitative easing that must be kept in mind. It is a tool used by central banks to lower down interest rates and increase the circulation of money in the economy. He seems to be a critic of a Federal Reserve, which he often calls “incompetent.”
Mr Kiyosaki thinks that the stock market has been artificially inflated by the Treasury Department and the Federal Reserve with decisions that are far from the realities of the current economy in the United States.
“So they pump all this money in, prices go up,” he told Kitco News on Wednesday. “So it is transitory inflation, but we’re stacked with this massive debt and all it’s done is bump up the stock market and real estate market.”
“The money has not gone into the economy, that’s the sad part. So the rich get richer, but the poor and middle class are getting poorer. It’s tragic what’s happening today.”
Indeed, throughout the pandemic, the Fed’s actions caused Kiyosaki to post many YouTube quarantine updates, including “Your Currency is Dying!!!” and “The Economy is DYING.” In one of them, he opined about FED–“They’ve been printing money since 1971 and instead of fixing the problem, they just kept making the problem worse.”
Should You Invest in Bitcoin, Gold or Silver?
It’s better to do your research!
Whenever you think that you must put in your hard-earned money in any top cryptocurrency exchange then it is better to research your own. Even in one of his books–Decrypting Crypto, he said– “If you are going to invest, first study the subject and then find someone who is investing in the asset you are interested in and ask them questions,” he says in his book
Moreover, the tweet is more applicable to the people from the U.S. diaspora, but we must keep an eye on the talks that many times add to how an investment asset will perform.
Cryptocurrency might pose as an excellent inflation hedge, but its value may vary dramatically. It is true that we don’t yet know the entire extent of the pandemic’s economic impact and accompanying government spending. However, we also can’t predict how the Bitcoin market will evolve and in what direction.
Make sure you thoroughly understand the risks involved, as with any investment, and consider if a cryptocurrency investment is suitable for you.