Thursday, January 18, 2018

Rich Dad, Gold Dad. Famed investor Robert Kyosaki sees gold and cryptocurrencies the real wealth protection

Very few books on finance have ever impacted the mainstream like Robert Kyosaki's Rich Dad, Poor Dad did when it came out a few decades ago.  And perhaps the book's most important legacy was in its painstaking examples of how two people could see money, investing, and wealth accumulation so radically different.

Rich Dad, Poor Dad's examples still resonate today, and it can even be said that the ideas within the book are needed more than ever in a world that has eschewed real money in favor of ever growing debt creation.

So with this being said, the financial mogul himself has not given up on providing opinions and insights to a world where equity markets mirror the same period in which he wrote his book, but where debt levels in every sector of the economy are beyond imagination.  And no matter that the stock markets are shooting up to new record highs daily, or that the world is splitting down the middle between East and West once again, the contrarian play is always the right one in Kyosaki's view, and that means investing in something old and something new.

Gold (old) and Cryptocurrencies (new).

On his view of financial assets, the self-proclaimed gold bug is one of few investors to be bullish on both bitcoin and gold, noting that the cryptocurrency will slowly erode fiat currencies’ relevance, while gold will act as an important hedge instrument. 
“When I talk to people, I say, ‘what do you think will be here in 2040? Will gold still be here? Well, it’s been here since eternity. Will the dollar be here? I don’t think so. Will blockchain be here, I think so,’” he said. 
Gold has rallied 6% since the Fed raised rates in December, while bitcoin has dropped 50% from its all-time high last month. Some analysts attribute this decline to bitcoin outflows back into gold, which some cryptocurrency traders view as a competing safe haven asset. 
Still, Kiyosaki maintains that bitcoin will outshine traditional fiat currencies in roughly twenty years. 
“The way I see the world today is that there’s three kinds of money,” Kiyosaki said, “there’s God’s money, which is gold and silver, there’s government money, called fiat money, or currencies, and the third type of money now is cyber money. That’s really the way I look at the world and currencies, is what’s going to be here in 22 years.” - Kitco

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