Robert Kiyosaki, the author of Rich Dad Poor Dad and an ardent supporter of Bitcoin, criticizes the education system for teaching children to work for an inflationary currency, emphasizing the merits of Bitcoin.
“The reason poor people remain poor is that they do not understand what true money is. Our academic system, including my poor dad and various professors, indoctrinates young people to earn ‘fake money.’”
Kiyosaki remarked, “Go to school, get a job, work hard, save money, and invest in a 401(k) full of garbage,” during a podcast hosted by Jordan Walker, Co-Founder of Bitcoin Collective, on Wednesday.
He did not hold back in his criticism of central banks, labeling them as “criminal organizations” and even “Marxists.” He claims that every time central banks print money, the wealthy grow richer while others suffer.
“Each time you print money, you create fake currency. People like me benefit, while the poor middle class deteriorates.”
The US Bureau of Labor Statistics’ inflation calculator indicates that holding $1,000 from August 2000 to August 2005 resulted in nearly a 47% loss of purchasing power due to inflation.
The Federal Reserve aims for 2% inflation per year, yet it has not achieved this since 2021. The inflation rate for August was recorded at 2.9%, with core inflation at 3.2%.
In contrast, Bitcoin has surged over 900% in the last five years, climbing from about $11,670 to around $117,200 at the time of this writing, according to CoinGecko.
Kiyosaki’s Bitcoin Holdings
Kiyosaki acknowledged that it took him a while to grasp Bitcoin, purchasing it at the $6,000 mark, but he now holds 60 BTC worth roughly $7 million.
“When Bitcoin launched, it took me time to understand. I bought it at $6,000, and now I keep asking myself, ‘Why didn’t you buy more?’ currently, I possess about 60 Bitcoin,” he shared.
He revealed that he utilizes earnings from his rental properties to invest in oil, gold, silver, Bitcoin, and Ethereum.
In April, Kiyosaki projected that Bitcoin could hit the $1 million mark within the next decade.
Despite his bullish stance on Bitcoin, he has previously expressed a contrary view, suggesting that “gold, silver, and Bitcoin might also crash,” at which point he would be more inclined to acquire these assets.
He cautioned investors regarding ETFs, labeling them as “paper assets” susceptible to a bank run, although he acknowledged that they offer a simple investment avenue for retail investors.
Inflation Affects Countries
Kiyosaki’s statements during the podcast ring true. Inflation, particularly hyperinflation, diminishes the purchasing power of everyday individuals.
Interestingly, individuals in countries severely affected by inflation are increasingly turning to cryptocurrency for financial protection.
Related: Bitcoin’s role as an inflation hedge depends on geographic location — Analyst
In Venezuela, the population is adopting stablecoins like Tether (USDT) for daily transactions, with an annual inflation rate soaring to 229%.
At the start of the year, one US dollar was equivalent to 51.95 Venezuelan Bolívar, whereas today it can buy 161.74 Bolívar, based on foreign exchange data from Xe.
Additionally, Saifedean Ammous, author of The Bitcoin Standard, has suggested that investors will gravitate towards the US dollar and Bitcoin, due to the anticipated devaluation of the Argentine peso prompting mass sell-offs of the currency and national bonds.
Raoul Pal, co-founder and CEO of Real Vision, has also encouraged investors to hold more crypto and NFTs to shield themselves from drastic currency devaluation.
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