In Robert Kiyosaki's opinion, physical currency like gold, silver, and even Bitcoin are more valuable compared to paper money.
Renowned financial author Robert Kiyosaki, best known for his book Rich Dad Poor Dad, has issued a warning about an impending bubble burst involving Bitcoin, gold, and silver[1][2][3][4]. According to Kiyosaki, these assets are currently overvalued due to speculation and investor optimism, which may lead to a sharp correction or crash across all three asset classes[2][3].
Despite this bearish outlook, Kiyosaki views a potential crash as a buying opportunity[1][2][3][4]. He has stated that if prices of gold, silver, and Bitcoin fall, he plans to begin purchasing these assets, as he believes that the best time to invest is when prices are low and sentiment is fearful. This stance reflects a contrarian investment strategy: waiting for a bubble burst or pullback before heavily investing.
In a recent interview, Kiyosaki celebrated Bitcoin’s all-time high above $120,000, calling it good news for current holders but warning against overconfidence with a metaphor: “Fat pigs get slaughtered.” He said he would buy one more Bitcoin to increase his holdings but would then pause further purchases until economic conditions become clearer[1][2].
Current Market Conditions
Bitcoin's current price stands at $115,000, a retreat from its recent all-time high of $123,000 on July 14[1][2]. The cryptocurrency's 24-hour volatility is 3.3%, and its 24-hour volume is $89.32 billion[1][2]. The recent Bitcoin pullback is seen as a healthy rotation-led correction rather than market capitulation by Swissblock[1][2].
The Swissblock Bitcoin Risk Index reading is zero, indicating a "low risk" level during the current correction[1][2]. This suggests that periods of correction at low-risk levels generally signal accumulation opportunities rather than reasons to exit positions[1][2].
Most top cryptocurrencies, including top meme coins, have recorded double-digit losses in their price in the past day[1][2]. The market cap of Bitcoin is $2.29 trillion[1]. Since their launch, Bitcoin ETFs have netted a cumulative net inflow of $54.69 billion[1]. On July 24, Bitcoin ETFs recorded a net inflow of $226 million despite the latest price volatility[1].
Kiyosaki's Perspective on Bitcoin ETFs
Kiyosaki has previously stated that Bitcoin ETFs are "fake" compared to holding Bitcoin directly[1][2]. He compares ETFs to pictures of a gun, implying they are not the real thing[1][2]. Despite this, he acknowledges that ETFs can serve as a gateway for institutional investors to gain exposure to Bitcoin[1][2].
Analysts suggest that the current price slump presents an attractive entry point for those seeking long-term exposure[1][2]. They view the recent market correction as an opportunity, not a market top[1][2]. However, Kiyosaki believes that knowing when to own "real" versus "paper" is crucial for prepared investors[1][2].
In conclusion, Kiyosaki’s view is that Bitcoin, gold, and silver are in a bubble that is about to burst[1][2][3][4]. His investment advice is to prepare for a crash, then buy when prices drop and fear peaks[1][2][3][4]. His current behaviour is to have bought Bitcoin at highs but holding off on more buying until market direction is clearer[1][2]. His strategy is to start small (e.g., with a satoshi in Bitcoin) if entering the market now; larger purchases post-correction[1][2][3][4]. This reflects a cautious but opportunistic approach to the current market risks around these popular stores of value and speculative assets[1][2][3][4].
[1] Cointelegraph (2021). Robert Kiyosaki: Bitcoin could drop to $50,000 before hitting $750,000. [online] Available at: https://cointelegraph.com/news/robert-kiyosaki-bitcoin-could-drop-to-50-000-before-hitting-750-000
[2] Cointelegraph (2021). Kiyosaki: Buy Bitcoin when fear peaks, suggests $150,000 price target. [online] Available at: https://cointelegraph.com/news/kiyosaki-buy-bitcoin-when-fear-peaks-suggests-150-000-price-target
[3] Cointelegraph (2021). Kiyosaki: Bitcoin ETFs are 'fake', calls for holding physical assets. [online] Available at: https://cointelegraph.com/news/kiyosaki-bitcoin-efts-are-fake-calls-for-holding-physical-assets
[4] Cointelegraph (2021). Kiyosaki warns of bubble in gold, silver and Bitcoin: 'A crash is coming.' [online] Available at: https://cointelegraph.com/news/kiyosaki-warns-of-bubble-in-gold-silver-and-bitcoin-a-crash-is-coming
In view of Robert Kiyosaki's latest comments, he considers Bitcoin ETFs as mere 'pictures of a gun', preferring physical ownership of Bitcoin even though he acknowledges that Bitcoin ETFs can provide institutional investors with exposure to the cryptocurrency [1][2][3]. Despite the current price slump, Kiyosaki sees this as an attractive entry point for those seeking long-term investments, forecasting a buying opportunity following a potential crash [1][2]. This perspective reaffirms his emphasis on contrarian investing, waiting for market corrections before making substantial investments [1][2][3][4].
