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Rich Dad, Poor Dad author Robert Kiyosaki has a mixed relationship with Bitcoin.At points he’s told his millions of followers to buy crypto .At others, he’s said that tins of tuna are a better bet than Bitcoin (BTC) — or claimed that increased regulation could cause the government to eventually seize crypto assets.Let’s take a deeper dive into what the popular author thinks and why he’s wrong.
Kiyosaki and Bitcoin Robert Kiyosaki is a somewhat controversial financial guru.His first book, Rich Dad, Poor Dad sold millions of copies and has been translated into over 50 languages.
First published in 1997, the book remains popular today.
It focuses on the importance of making your money work for you, with an emphasis on financial education and building wealth.However, Kiyosaki has come under fire from critics who say some of the advice is wrong, bordering on dangerous.
Kiyosaki originally started to buy Bitcoin because he was unhappy about the Federal Reserve’s quantitative easing and other measures.
He’s a big fan of gold and silver for similar reasons — he sees them all as a hedge against inflation and recessions.However, this narrative hasn’t held for Bitcoin in recent months.The top crypto’s price has plummeted in spite of the fact inflation is the highest it’s been in 40 years.In June, Bitcoin’s price fell to an 18-month low.
Why Kiyosaki is wrong about Bitcoin The real danger in Kiyosaki’s tweets is the idea that we can call the bottom of the current crypto price slump.
Nobody has a crystal ball, and there are so many factors that could still push Bitcoin’s price down further.A look at Kiyosaki’s messages in recent months demonstrates exactly this.
In just a few months, he’s suggested a potential Bitcoin bottom of $20,000, $9,000, or even $1,100.He says Bitcoin, food, guns, and bullets are the way forward.Then he says tuna and baked beans are better than Bitcoin because you can eat them.
And then he labels people who sell their crypto as losers.
Here are some of his recent tweets on Bitcoin in full:
June 28: RICH Dad lesson.”LOSERS quit when they lose.” Bitcoin losers are quitting some committing suicide.’WINNERs learn from their losses.I am waiting for Bitcoin to “test” $1100.If it recovers I will buy more.If it does not I will wait for losers to “capiulate” quit then buy more.
June 13: Best INVESTMENT: Cans of Tuna Fish.Inflation about to take off.Best investments are cans of tuna & baked beans.You can’t eat gold, silver, or Bitcoin.You can eat cans of tuna and baked beans.Food most important.Starvation next problem.
Invest in the solution.Take care.May 23: May 23, 2022: DAVOS, Switzerland IMF warns world faces greatest financial challenges since WWII.Global disaster has been coming for years.
Desperate leaders will do desperate things.Workd War coming? God have mercy on us.Save gold, silver, Bitcoin, food, guns, and bullets.May 19: I remain bullish on Bitcoin’s future.Waiting for test of new bottom.$20k? $14 k? $11 k? $9 k? Why do I remain bullish? Fed and Treasury are corrupt organizations.They will self-destruct before they regain honesty, integrity and moral compass.Take care.
Be aware.Bottom line There are all kinds of financial gurus who say the decisions we make in a bear market could eventually make us rich.But as an investor, these turbulent times are tough, especially if you’ve seen your crypto portfolio devalue dramatically.Investors are looking to so-called experts for advice on what to do — and a series of slightly contradictory tweets don’t help.
Some investors may be tempted to cut their losses and sell.With some cryptos down 90% from their highs, that’s understandable.
It’s hard to hunker down and wait for the storm to pass, but the risk of selling is that you won’t benefit if prices do eventually recover.The challenge is that we don’t know when — or if — better times might come.When a guru tells you the price could fall by a further 50% or more, getting out of crypto-town becomes even more appealing.
Others might want to buy Bitcoin at these low prices, and may be wondering when to jump in.Some say we hit a bottom when Bitcoin slipped below $20,000 , which may be accurate.
But there are still some significant downward pressures on crypto prices, and crypto has some serious hurdles to cross in the coming months.Even so, if Kiyosaki’s followers are waiting for a fall to $9,000 or even $1,100, they may hesitate too long on the sidelines and never buy crypto at all.
One thing that is clear from Kiyosaki’s mixed messages is that this is a high-risk asset class, and the macro economic situation or increased regulation could have a big impact on prices.If you’re considering buying crypto while prices are low, do your own research and make sure you understand the risks.You may find some good advice from financial gurus on social media.Just bear in mind that only you know your financial situation and it is you — not them — who is putting your money on the line.
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The Ascent does not cover all offers on the market.Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has positions in Bitcoin.The Motley Fool has positions in and recommends Bitcoin.The Motley Fool has a disclosure policy .
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