Robert Kiyosaki, author of the famous personal finance book “Rich Dad Poor Dad,” came up with another enthusiastic statement in support of the cryptocurrency. The author listed 7 reasons why his followers should invest in Bitcoin and precious metals,
Robert Kiyosaki, author of the famous personal finance book “Rich Dad Poor Dad,” came up with another enthusiastic statement in support of the cryptocurrency. The author listed 7 reasons why his followers should invest in Bitcoin and precious metals, focusing on the current financial situation of the US government.
According to Kiyosaki, the first reason to invest in Bitcoin is that the US is heavily indebted. The nation is currently in debt of up to about $31 trillion, according to the US National Debt Clock. Meanwhile, the US GDP stands at just $24.8 trillion. Hence, the country's debt-to-GDP ratio stands at 137.76%.
Kiyosaki then voices the country's intention to 'keep interest rates low'. Interest rates have been drawn to historically low levels throughout 2020 and 2021. As you follow on Kriptokoin.com, this has encouraged a bull market for both Bitcoin and stocks. But keeping interest rates low requires the Fed to buy Treasury bills and expand its balance sheet. This leads to the fourth reason to buy Bitcoin: Inflation.
Annual CPI in the US has been rising since 2021. Accordingly, it peaked at 9.1% in June. However, in the process, the Federal Reserve stepped in and blooded the crypto and stock markets. CPI has fallen slightly in the last two months, thanks to the Fed's tightening of policy with rising interest rates.
As the author points out, higher interest rates lead to more expensive debt across the country. Market analyst Nicholas Merten of DataDash said on Monday that Fed policy is now increasing the cost of housing. It's possible that this is causing "depressive levels of recession," according to Merten. Indeed, the United States followed two consecutive quarters of negative GDP growth. It then confirmed its recession status in July.