In a recent interview with Fox Business, financial guru Robert Kiyosaki cautioned about the possible repercussions of banks collapsing and supported cryptocurrencies as a plausible substitute. Kiyosaki explained that the current banking system is precarious, attributing it to the impact of the bond market, and advised people to brace themselves for a worst-case scenario.
He also asserted that the current financial system's overreliance on debt renders it fundamentally flawed. The banking industry continuously generates and disburses money to borrowers, despite not possessing the funds they lend. This inherent problem implies that the whole system is constructed on a fragile foundation, susceptible to an abrupt collapse.
In the event of banks' failure, financial expert Kiyosaki cautions that a colossal economic collapse may ensue, causing individuals to lose their savings, and the value of the dollar to plummet. Although the government may intervene to salvage the system, the action could spur inflation but fail to avert a total financial catastrophe. To combat this situation, the author and investor recommend seeking refuge in alternative assets such as gold, silver, and bitcoin.
Financial expert Kiyosaki asserts that bitcoin and cryptocurrencies are feasible substitutes for the conventional banking system. As decentralized currencies, they operate independently of any government or central authority, rendering them more stable and secure than traditional currencies, according to Kiyosaki. Moreover, crypto presents several advantages over fiat currencies, including its borderless nature that allows it to be used globally and its high divisibility, making it ideal for small peer-to-peer transactions.
Undoubtedly, investing in cryptocurrencies carries risks as well. The market is volatile, and cryptocurrency values can fluctuate significantly. Nonetheless, Kiyosaki contends that the potential gains and advantages of crypto far surpass the associated risks.