Robert Kiyosaki wrote one of the world’s best-selling finance books, called “Rich Dad, Poor Dad”. The author has now spoken about the value of cryptocurrencies and why they can be hedging tools for the next financial crisis that will hit the world economy.
Kiyosaki takes a firm stand against fiat money and the fact that they will disappear eventually. He believes that there wasn’t a time in the history of human population when central banks are printing money that are backed by nothing. While fiat money is usually covered by precious metals, such as gold and silver, countries around the world are printing unbacked money and hence, inflation is rising.
According to Coinstaker’s article, when there is a mismatch between the inflation rate and the supply of money, the next financial crisis is inevitable because of the magnitude of the mismatch. The Federal Reserve in the US prints roughly around $85 billion every month, which is like $1 trillion every year.
Kiyosaki recently commented:
“For every one ounce of gold, there might be a hundred ounces of paper gold, and that’s why I’ve never trusted paper.”
Robert Kiyosaki thinks that cryptocurrencies are already categorized equally to precious metals such as gold and silver, since he believes that once the financial crisis starts, the prices of commodities, including alt coins, will soar.
The scariest prognosis is that the next financial crisis is coming almost with 100% certainty. Business leaders and financiers have long been forecasting that it is inevitable to have economic meltdown since quantitative easing (the printing of money en masse), will eventually blow up and countries will have to turn to commodities, including cryptocurrencies.
One “fresh” example is Venezuela. The Latin American country just announced the cryptocurrency Petro, which is now the second official currency in the country, after the Bolivar keeps plummeting.