Renowned for penning "Rich Dad Poor Dad" in the 1990s, Robert Kiyosaki has emerged as a vocal proponent of Bitcoin. He appreciates the token's deflationary nature, along with assets like gold and silver. Kiyosaki solidified his position following recent developments involving the Federal Reserve and its chair, Jerome Powell.
In a post on X, Kiyosaki remarked, "Fed Chairman Powell finally spoke the truth. Last week, he finally acknowledged that inflation is gaining ground. The Fed can no longer guarantee inflation at 2% or dismiss inflation as 'transitory.' He has ceased his falsehoods. Congratulations. However, most individuals fail to grasp the implications of the Fed Chairman's admission for themselves, their families, or the world. In simpler terms, it means 'We're in trouble.'"
In particular, Kiyosaki likely refers to a speech Powell delivered at Stanford University, indicating that inflation is "moving down toward 2% on a sometimes bumpy path" following persistent inflation data in January and February 2024. However, Kiyosaki may be misconstruing some of Powell's remarks; the Fed chair did not explicitly state that they cannot commit to 2% inflation.
Janet Yellen, the former Fed chair and current Treasury Secretary, did express regret for stating that inflation was "transitory" in 2021.
While Kiyosaki's portrayal of Powell's statements may be overstated, the underlying argument is that central banks wield their authority to print money, undermining the purchasing power of currencies like the dollar. Kiyosaki champions "real money" and only holds assets like gold, silver, and Bitcoin.
Unlike central banks, which are subject to human influence, Bitcoin, gold, and silver have finite supplies, allowing them to preserve value over time.
Bitcoin serves as an exemplar of an asset with deflationary traits. Its supply is capped at 21 million tokens, with new tokens entering circulation at a decreasing rate. This scarcity could lead to appreciation against the dollar, as observed sporadically over the past decade.
While Kiyosaki's critique of the Federal Reserve may not be entirely accurate, the notion that certain assets perform well during periods of high inflation holds true. As inflation approaches the Fed's 2% target, the impact of the central bank's policies on Bitcoin's price remains to be seen.
