Robert Kiyosaki Breaks Down Bitcoin’s Growing Power Over the US Dollar

CN
2 days ago

Robert Kiyosaki, author of the bestselling book Rich Dad Poor Dad, shared his perspective on bitcoin’s growing power through two economic principles on social media platform X on Jan. 25. Writing, “Two laws that give bitcoin power,” Kiyosaki highlighted Gresham’s law and Metcalfe’s law, concepts he believes explain why bitcoin is increasingly challenging the dominance of traditional currencies like the U.S. dollar.

Kiyosaki began by explaining Gresham’s law, stating: “When bad money enters a system, good money goes into hiding.” He argued that inflation and excessive money printing have turned the U.S. dollar into “bad money,” while assets like gold, silver, and bitcoin represent “good money” that holds value over time. “Good money gold and silver have been hiding from fake U.S. dollars for years,” he stressed, emphasizing:

Today, gold, silver, and bitcoin are forcing the fake U.S. dollar into hiding.

This statement reflects Kiyosaki’s longstanding critique of fiat currencies and his advocacy for alternative assets as protection against economic instability.

Shifting focus to Metcalfe’s law, which emphasizes the value derived from networks, Kiyosaki illustrated its relevance to bitcoin. He wrote: “McDonald’s has more power than a small business hamburger stand. McDonald’s is a franchise network. Network marketing, which I endorse, has more power than small business entrepreneurs for the same reason.” Comparing this principle to his own financial success, the acclaimed author noted:

Rich Dad has power because it uses a global network of book stores and Amazon to distribute products.

Encouraging others to capitalize on network effects, he opined: “You too can be small, like me, and gain wealth and influence by using the power of Metcalfe’s law. This is also known as capitalism, which I prefer over communism. Good luck.”

Kiyosaki’s post aligns with his broader financial warnings, including repeated predictions of a U.S. dollar collapse due to debt and inflation. Tying this belief to bitcoin, he recently doubled down on his forecast that BTC could hit $250,000 this year.

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