- Kiyosaki echoes Dent’s “everything crash” prediction, warning of a major market bubble burst fuelled by US debt and advocating for Bitcoin, gold, and silver as hedges.
- Responses to Kiyosaki’s predictions are mixed, with some questioning the accuracy of his recurrent doomsday scenarios.
- Despite Kiyosaki’s view of Bitcoin as a decoupled asset, evidence suggests increasing correlation with equity markets, challenging its status as an alternative financial system.
Robert Kiyosaki, author of what he calls the number one best-selling personal finance book ‘Rich Dad, Poor Dad,’ is known for his controversial predictions and posts. A couple of days ago Kiyosaki reacted to economic forecaster Harry Dent – who had predicted an “everything crash” – by saying if that scenario comes into play, he will simply buy more Bitcoin.
Related: Quant Traders Outperform ‘Buy and Hold’ Strategy in Bitcoin’s Roller-Coaster Market, Studies Show
Now, in his latest post, Kiyosaki wrote to his 2.5 million followers about what he calls the “everything bubble.” This seems to echo Dent’s doom scenario, because Kiyosaki says many major markets are in a giant bubble which is about to crash, taking down with it stocks, bonds and real estate.
The reason for the crash?
Increasing US debt and what Kiyosaki calls a US bankruptcy.
The solution?
According to the author, the best way to safeguard against this is to buy Bitcoin, gold and silver.
Kiyosaki’s Statements Not Without Controversy
Reactions to the announcement have been “mixed,” to put it mildly, with one asking if anyone is keeping score of the doomsday predictions – hinting at the many times Kiyosaki has made these predictions.
Another X-user simply posted a collage of Robert Kiyosaki’s crash predictions over time, and they are an impressive collection.
But there is another element to Kiyosaki’s statement. When he advises people to buy Bitcoin as a preparation for a crash, he makes the assumption that Bitcoin is decoupled from broader financial markets.
This has been a narrative in crypto for some time, and is sticking around for some reason – yet it simply is not true.
There’s ample evidence to suggest that Bitcoin and other cryptocurrencies have shown an increased correlation with the equity markets, particularly during times of market stress or significant monetary policy announcements from the US Federal Reserve. Although, admittedly this correlation fluctuates.
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Maria Carola, CEO of StealthEX, suggests that Bitcoin’s integration into ETFs and the increased institutional participation are making it more akin to traditional equities, potentially diluting its essence as an alternative financial system.
“These shifts could expose Bitcoin to the very systemic risks from which it was designed to escape,” she wrote, signalling a critical juncture in the cryptocurrency’s journey amidst its changing investment thesis and market correlation dynamics.
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