Robert Kiyosaki called the United States bankrupt and called for buying gold and the leading cryptocurrency. How correct and logical is it to place crypto on par with precious metals, which act as a safe haven, while crypto exhibits pronounced volatility? Can crypto really provide a hedge against the collapse of America, with its snowballing national debt and the emergence of all sorts of bubbles?
This is not the first time Kiyosaki has called on investors to buy cryptocurrency and precious metals.
There are several reasons for this:
1. Indeed, comparing cryptocurrencies and precious metals as safe havens is not entirely correct. Cryptocurrencies, especially bitcoin, have historically displayed heightened volatility, while gold is traditionally seen as a more stable and reliable asset in times of economic uncertainty. Silver is also a volatile asset.
2. Most likely, Robert Kiyosaki sees bitcoin as a hedge against inflation, financial manipulation by authorities and banks. Given the rapid rise in US and European sovereign debt, as well as uncertainty about the future of the dollar due to multipolarity, some investors indeed regard cryptocurrencies as an alternative to traditional assets.
3. It is premature to call the US bankrupt. Yes, there are legitimate concerns about the state of government finances, but the United States is still the world's largest economy with enormous economic and financial resources. Many have been waiting for the collapse of America since 2000. 23 years have gone by, the debt has quintupled, but the dollar has still not gone away.
4. Bitcoin can be part of a diversified investment portfolio, especially for those who want to hedge against possible financial shocks. However, it should be viewed as a high-risk asset rather than a safe haven like gold. Gold has its own history. And buying impersonal gold is also risky. If the dollar collapses, all markets will go bust, since all payments are made in dollars, and gold will also crater. And no one will supply physical gold through futures and impersonal accounts. There is not enough gold to meet all the demand for open positions. This is important to understand. As for physical gold, it needs to be stored somewhere and storage must be paid for. Bitcoin wins out in this regard.
In any case, investors should carefully assess the situation, diversify their investments and not panic. The economy and financial markets are always unstable, but competent risk management can help preserve and increase capital.