Rich Dad Bad Dad Author Lists 7 Reasons to Buy Bitcoin

Robert Kiyosaki – author of the famous book “Rich Dad Poor Dad” – has come out with another enthusiastic statement in support of cryptocurrency.

The author listed 7 reasons why his followers should invest in Bitcoin and precious metals – centered around the current financial position of the United States government.

How the US Dollar is Dying

Who reads Kiyosaki’s chirping, the number one reason to invest in Bitcoin is that the US is “borrowing too much money”. according to US National Debt Clock, the nation is now up to nearly $31 trillion in debt. Meanwhile, US GDP stands at just $24.8 trillion, leaving the nation’s debt-to-GDP ratio at 137.76%.

Kiyosaki then cited the country’s intention to “keep interest rates low.” Interest rates were taken to historically low levels throughout 2020 and 2021, spurring a bull market for both Bitcoin and stocks.

However, keeping interest rates low requires the Fed to buy government bonds and expand its balance sheet. This leads to the fourth reason to buy Bitcoin: inflation.

US annual CPI inflation has been on the rise since 2021, peaks in June of 9.1%. However, the figure has reigned somewhat over the past two months thanks to the tightening of Federal Reserve policy through rising interest rates – which have bloody crypto and stock markets in the process.

Inflation and recession

As the author points out, higher interest rates lead to more expensive debt across the board. Market analyst Nicholas Merten of DataDash noted Monday that Fed policy is now driving up the cost of shelter. According to Merten, this could lead to “depression levels of recession.”

In fact, the US already confirmed recession status in July after clocking in two consecutive quarters of negative GDP growth.

Some crypto bulls have expected The Fed will return to loose monetary policy in the face of such market turmoil. This will likely lead back to higher crypto/asset prices and a weakening dollar. Kiyosaki thus arrives at his final position – that the American dollar is dying.

“BUY GS-Bitcoin,” he concluded.

Gold, silver and Bitcoin are often put in the same bucket as forms of “sound money” – money that is scarce with reliability, and therefore cannot be degraded. This makes them resistant to inflation, unlike the dollar – which has expanded its supply exponentially over the past 3 years.

Kiyosaki has previously advised followers to invest in the same basket of goods while including Ethereum on some occasions.