Financial expert Robert Kiyosaki warns of the potential consequences of bank failures and highlights the benefits of cryptocurrencies as an alternative in a recent interview.
In an interview with Fox Business, financial expert Robert Kiyosaki warns of the consequences of bank failures and the impact it could have on the economy in a recent interview. According to Kiyosaki, the current banking system is unstable, the bond market is the cause, and people need to be prepared for the worst case scenario.
Kiyosaki thinks the current financial system is flawed because it is debt-based.
Banks are constantly creating and lending money to people, but they don’t actually have the money they are lending on hand. This problem means that the whole system is built on a house of cards that could collapse at any moment.
So what would happen if some banks failed?
Kiyosaki warns that bank failures could lead to a huge economic collapse. People would lose their savings and the value of the dollar would go into a downward spiral.
The government will step in to support the system that will cause inflation, but that will not be enough to prevent a complete financial collapse. This is where other assets like gold, silver and bitcoin come in, according to the author and investor.
Kiyosaki believes bitcoin and crypto are viable alternatives to traditional banking. Cryptocurrencies are decentralized, which means that they are not controlled by any government or central authority. For this reason, he states, they are more stable and secure than traditional currencies.
Kiyosaki points out that crypto has several advantages over traditional currencies. For example, crypto is borderless, which means it can be used anywhere in the world, unlike fiat. It is also highly divisible, which makes it perfect for small peer-to-peer transactions.
Of course, there are also risks when it comes to investing in cryptocurrencies. The market is volatile and the value of cryptocurrencies can fluctuate wildly. However, Kiyosaki believes the potential rewards and benefits of crypto outweigh the risks.