Rich Dad Poor Dad author Robert Kiyosaki says now is the right time to buy Bitcoin (BTC), noting that the crypto presents opportunities. The tip comes as the best-selling author foresees a potential U.S. dollar crash by January.
Use any interest rate hikes by the Federal Reserve as buying opportunities
The author and businessman said there is an opportunity for Bitcoin and two other commodities, silver, and gold, amid a strengthening dollar and continued interest rate surge. The advice follows Kiyosaki’s belief that rate hikes by the Fed usually lead to price drops in the three commodities.
According to a Twitter post dated October 2, Kiyosaki told his 2.1 million followers that these three commodities would keep going lower as the USD becomes more powerful. In his opinion, the action would prove the dollar’s worth once the “FED pivots” and lowers interest rates. He stated:
“BUYING OPPORTUNITY: if FED continues raising interest rates, U.S. $ will get stronger, causing gold, silver & Bitcoin prices to go lower. BUY more. When FED pivots and drops interest rates as England did, you smile while others cry. Take care”
According to Kiyosaki, the ‘pivot’ may occur as early as January 2023, causing the USD to crash, similar to the British pound scenario. The famed author believes the USD will take the same path as the GBP, noting:
“Will the U.S. dollar follow English Pound Sterling? I believe it will. I believe the U.S. dollar will crash by January 2023 after Fed pivots, and I will not be a victim of the F*CKed FED.”
This is not the first time Kiyosaki has advocated for asset classes beyond the Fed’s direct influence. In May 2020, the renowned author warned investors to “Get Bitcoin and save yourself.” The advice came amid prompt mass money printing episodes by the Fed in retaliation to the COVID-19 pandemic.
In many instances during the pandemic, Kiyosaki was very vocal in criticizing how the Fed responded to the economic fallout. He also urged his social media followers to protect themselves from imminent inflation and possibly hyperinflation by leveraging their fiat currencies to acquire Bitcoin, silver, and gold.
During a podcast on Rich Dad, Kiyosaki articulated that there is no value to Bitcoin. His comment was, however, ironical, as he continues to see it as a hub in times of crisis. According to a September letter addressed to his mailed subscribers, the author and financial literacy advocate insisted on investing in digital assets to score massive long-term returns. Standing behind Bitcoin in his latest tweet, Kiyosaki explained:
“When FED pivots and drops interest rates as England did, you smile while others cry. It’s not enough to WANT to get into crypto […] Now is the time you NEED to get into crypto, before the biggest economic crash in history.”
The Rise and Rise of The U.S. Dollar
Over the last year, the U.S. dollar has progressively gained over some of the world’s major currencies, including the Sterlin pound, the Euro, and the Japanese According to data from Trading Economics, the USD rose against GBP, JPY, and Euro by 18.24%, 23.33%, and 15.54% respectively. The U.S. Dollar index (DXY) has also displayed excellent performance reaching record highs around 114.7 on September 29.
Similarly, the interest rate hike by the Feds and the burgeoning USD over the last year corresponded with a 55% decline in the total cryptocurrency market cap.
In a September announcement by CK Zheng, a hedge fund co-founder, October is expected to display massive volatility for Bitcoin. He said:
“October is a pretty volatile period, especially when combined with high inflation, with much debate regarding the Fed and policy change. The concern is that if the Fed tightens too much, the U.S. economy may suffer a severe recession.”
Peter Schiff Supports Kiyosaki
Peter Schiff, known for being anti-Bitcoin, used the opportunity to comment, this time in favor of the flagship crypto. According to Schiff, there is a likelihood that gold and silver prices have already hit bottom. He notes, “The first pivot domino already fell, and the markets have not realized it yet. This is the time to buy your gold and silver while prices remain low.”