R. Kiyosaki warns dollar to crash within 4 months as investors ditch fiat for Bitcoin
In the wake of the Federal Reserve raising interest rates to historic levels, the dollar has reacted positively, gaining at the expense of other global fiat currencies. In particular, the British pound is among the currencies that perform poorly against the dollar.
Despite the dollar’s strong performance, the author of the book on personal finance “Rich Dad, Poor Dad” Robert Kiyosaki, believes the US currency’s strength will be short-lived.
In a chirping On October 1, Kiyosaki noted that the dollar would potentially crash in early 2023, but suggested that silver could be an alternative asset to cushion a possible dollar crash.
“Will the US Dollar Follow the British Pound? I think it will. I think the US Dollar will crash by January 2023 after the Fed swings. To profit from the crash of the US $ I bought many more US Buffalo rounds. Silver is a bargain, Kiyosaki said.
In an earlier chirpingKiyosaki also suggested that the US and England share a historical bond that could spill over into the financial markets.
“AMERICA’S BIRTHPLACE is NEW ENGLAND. Old ENGLAND died this week. The Old English Pound died this week, as did old English pensions. Is America’s NEW ENGLAND next? Remember crashes make the rich richer. Don’t be a victim like the Old English of Old England. Think and act with NEW power,” he said.
Possible market crash
Kiyosaki’s latest stance on the dollar comes after he previously warned that global markets are likely to experience a “catastrophic crash” and investors should venture into cryptocurrencies before usurping the dollar.
At the same time, Kiyosaki had previously predicted an end for the dollar, calling it fake money while advising investors to choose silver which he suggested could rise to around $500.
Generally, other fiat currencies fall as their respective central banks try to keep pace with Fed policy. In particular, there are signs that the Fed will continue with its hiking plan since lowering interest rates would spell doom for soaring inflation.
Interestingly, the strong dollar has directly translated into losses in other global fiat currencies, with investors largely turning to Bitcoin (BTC) as a hedge. In this case, Finbold reported that individuals from the UK and EU are selling both the pound and the euro at record highs to acquire Bitcoin.
Crypto and dollars give the best results
The interest is highlighted by a surge in Bitcoin trading volume that has hit a three-month high despite the asset’s price consolidating below $19,000 in a year marked by significant corrections.
Investors are dumping fiat since they consider Bitcoin a hedge, while others intend to profit from arbitrage. The development highlights Bitcoin’s potential and ability to fulfill the fundamental principle of acting as a hedge against inflation.
In general, Bitcoin has corrected in line with the stock markets, offset by the macroeconomic factors. It is worth noting that despite Bitcoin and the cryptocurrency sector’s correction, Finbold reported on September 26 that digital currencies and the dollar are competing to emerge as the best performing assets in the second half of 2022.
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