Robert Kiyosaki Suggests BTC As US Debt Signals Market Crash

Businessman and “Rich Dad, Poor Dad” author Robert Kiyosaki shocked many this week when tweeting we are on the brink of “the biggest (financial) crash in the world”. While expressing his concerns over the current financial markets, Kiyosaki also took the opportunity to detail how one could get rich during the impending crash: by getting more Bitcoin. The tweet reads, “The best time to prepare for a crash is before the crash. The biggest crash in world history is coming. The good news is the best time to get rich is during a crash. Bad news is the next crash will be a long one. Get more gold, silver, and Bitcoin while you can. Take care.” 

This tweet comes on the heels of Kiyosaki revealing that he was waiting for Bitcoin to dip to $24,000 so he could invest, saying “Biggest bubble in world history getting bigger. The biggest crash in the world history coming. Buying more gold and silver. Waiting for Bitcoin to drop to $24 k. Crashes are the best time to get rich. Take care.” At the time of publishing, Bitcoin was sitting at a jaw-dropping $55,000. 

But why all the panic signaling, you may ask? The author and Bitcoin enthusiast is not the only one who thinks we are about to hit a major crash. 

Is the Stock Market Going to Crash?

All this crystallizes when we assess the sheer amount of debt the US has accumulated since the start of the COVID-19 pandemic, done in an attempt to ward off a financial crisis. Stimulus checks and trillions of dollars of infrastructure spending have pushed the national debt to 108 percent of GDP this year, surpassing the record 106% set after World War II. 

The United States has never defaulted on federal debt before, something it is currently at risk of doing. As a result, President Joe Biden has called on Congress to raise the debt ceiling given Treasury Secretary Janet Yellen’s announcement that the Treasury won’t have any money for spending which has not already been approved. If a bill that is a roadmap for raising the debt ceiling long-term continues to be blocked it could lead to what Yellen defines as “a catastrophic event for the economy”. 

Concurrently, US inflation hit a staggering 5% year-on-year rise this past May, the highest change since 2008. And given inflation implies higher interest rates are coming, investors are scrambling for alternative safe-havens. Bitcoin and crypto have gained a strong reputation as a hedge against inflation because unlike the U.S Dollar or other fiat currency, they have limited supply by design. Inflation and more people rushing to acquire Bitcoin will inevitably lead to a healthy BTC rally. 

To learn more about how inflation affects the price of Bitcoin, watch this video: 

While crypto may be seen as a safe haven for investors, many are beginners speculate as to whether US regulatory authorities will move to ban cryptocurrencies like China has. However, during a hearing before the House Financial Services Committee, Federal Reserve Chair Jerome Powell revealed he has no intention of banning or limiting the use of cryptocurrencies. Another sigh of relief was heard when SEC Chairman Gary Gensler said the SEC also has no plans to ban cryptocurrencies. 

Could Bitcoin and other altcoins be the knight in shining armor for the many that managed to hop on early enough ahead of Kiyosaki’s impending crash? Stick with Dchained for up-to-the-moment coverage. 

Next
AXS Price Spikes, Is GGTK, DXO, + PYR Next in Crypto Gaming?