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What is the reason that the author of "Rich Dad Poor Dad" chooses Bitcoin? An explanation of investment philosophy that you may not have asked until now.
He has repeatedly recommended Bitcoin (BTC) in recent years, and his comments on social media and in interviews have attracted attention among cryptocurrency investors.
Why does he harbor distrust towards fiat currency and evaluate Bitcoin as a means of "asset protection"?
In this article, we will organize Mr. Kiyosaki's thoughts and investment philosophy based on his books, posts, and interviews, and explore hints that can be applied to modern asset management.
*Please note that while Mr. Kiyosaki's posts and statements contain many valuable points, they are personal opinions. In the past, he has made posts with exaggerated expressions and provided price predictions without clearly showing evidence. Table of Contents
2-1. Major statements and actions regarding Bitcoin
2-2. Distrust in the US dollar and inflation concerns 3. Learning from the teachings of Rich Dad on how to approach money
3-1. The original experience featuring "Rich Dad"
3-2. How to create a state where money works?
3-3. Why doubt "money (fiat currency)"?
3-4. The Importance of Acquiring Financial Knowledge 4. Summary 5. Frequently Asked Questions | The Relationship Between Robert Kiyosaki and Cryptocurrency
1. Mr. Kiyosaki's Profile
Robert Kiyosaki is a Japanese-American entrepreneur widely known in the field of investment education and the author of the global bestseller "Rich Dad Poor Dad." He has engaged in a wide range of activities as a writer, entrepreneur, and educator.
Mr. Kiyosaki achieved early retirement at the age of 47 after his success as an entrepreneur. He has stated that since then, he has devoted his passion not to investing or starting businesses, but to "education." Through lectures and appearances on radio and television, he has widely communicated his thoughts on money and the importance of asset formation.
In addition, the developed board game 'Cashflow' has gained popularity as an educational tool that allows people to learn while enjoying the teachings of Rich Dad, and it is used worldwide.
2. Why does Mr. Kiyosaki recommend Bitcoin?
2-1. Main Statements and Actions Regarding Bitcoin
Robert Kiyosaki has frequently recommended investing in Bitcoin, gold, and silver on social media and in interviews in recent years. Below is a list of representative statements and actions.
From these statements, it is clear that there is a consistent background of "concerns about fiat currency (especially the US dollar)" and a "philosophy on how to protect and increase wealth."
2-2. Distrust in the US dollar and inflation concerns
The main reason Mr. Kiyosaki recommends Bitcoin is due to a "fundamental distrust of the US dollar, which is a fiat currency," and "to prepare for the risk of currency value decline due to inflation."
What is inflation?
Abbreviation for "Inflation". It refers to the rise in prices of goods and services (prices). On the other hand, it also means that the value of money decreases relatively. Furthermore, the phenomenon where prices rise rapidly and extremely is called hyperinflation.
Mr. Kiyosaki explains the essence of inflation as "the decrease in the value of money," and continues to sound the alarm against the expansion of the supply of fiat currency. In the process of the dollar losing its value, he repeatedly emphasizes the importance of Bitcoin, which is scarce and not subject to central management, as a means that people should choose to protect their assets.
There are experts who recommend Bitcoin as a countermeasure against inflation, besides Mr. Kiyosaki. In many cases, they cite the following characteristics of Bitcoin as reasons.
The following graph shows that the amount of Bitcoin you can buy for 1 dollar (in satoshi terms) has decreased by 99.9% over the past 14 years. This can be considered data that symbolizes the purchasing power of Bitcoin in an inflationary environment.
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3. Learning from Rich Dad's Lessons: How to Face Money
Behind Mr. Kiyosaki's Bitcoin endorsement lies not just an economic judgment, but a "philosophy of money" that has been passed down for many years.
Here, we will extract the points on how to face money that are applicable even in modern times from his representative work "Rich Dad Poor Dad," related books, and lectures, and organize the lessons we can learn to achieve financial freedom.
3-1 What is the original experience featuring "Rich Dad"
First of all, the "Poor Dad" mentioned in "Rich Dad Poor Dad" refers to Kiyosaki's biological father. The "Rich Dad" refers to the father of Kiyosaki's childhood best friend.
Mr. Kiyosaki, during his childhood, attended a public school where wealthy children went due to a "little twist of fate," and from the experience of being called a "poor kid," he became interested in ways to become rich.
This book begins with "I have two fathers. A rich father and a poor father." As you read on, you will understand who each of them refers to. I will omit the detailed background in this article, but Mr. Kiyosaki, who was interested in how to become wealthy, decided at the age of 9 to listen to what rich dad had to say about money.
Additionally, there are scenes in this book where Mr. Kiyosaki's real father, the poor dad, advises to ask the rich dad about money. This book is mainly composed of the teachings of the rich dad.
3-2. How to create a state where money works?
The "Rich Dad Poor Dad Official Website" states that "understanding the differences in mindset between Rich Dad and Poor Dad is essential to taking the first step toward financial freedom."
The following content is widely pointed out as important words that represent the differences in the attitudes of the two people.
In "Rich Dad Poor Dad," this way of thinking is described as the decisive difference that separates rich dads from poor dads. While his highly educated biological father continued to struggle with money, Robert Kiyosaki states that it was this way of thinking that allowed the rich dad to become the richest person in Hawaii.
Mr. Kiyosaki refers to this way of thinking as the "first lesson," as his rich dad taught him this idea repeatedly.
As written in the "Conclusion" section of this book, "making money work for yourself" means not only earning labor income, but also enabling the acquisition of portfolio income and passive income. For example, it states that portfolio income comes from stocks and bonds, while much of passive income is derived from real estate.
And, it is said that Rich Dad often said the following.
The key to becoming wealthy lies in the ability to convert earned income into passive income or portfolio income as quickly as possible.
He also stated that taxes on earned income are the highest and taught to be mindful of taxes.
Rich Dad and Poor Dad say opposite things about money, and understanding that difference is the first step toward financial freedom.
According to "Rich Dad Poor Dad," the rich dad taught Mr. Kiyosaki six main things over the course of 30 years. Here are the details.
3-3. Why do we doubt "money (fiat currency)?"
Mr. Kiyosaki does not trust his country's legal currency, the US dollar, and refers to it as "fake money." This distrust is a major reason for his endorsement of Bitcoin, gold, and silver.
The reason for not trusting the US dollar dates back to 1971. That year, President Nixon of the United States suspended the convertibility of the US dollar into gold, ending the gold standard. In 2018, Mr. Kiyosaki claimed that after the gold standard, the US dollar has become entirely fake money.
After the end of the gold standard, which issued U.S. dollars backed by gold, it became possible to issue fiat currency without being constrained by gold reserves, thereby promoting economic growth. However, there is a view that the discipline necessary for a sound fiat currency has been lost.
As a result, it is said that the supply of fiat currency has increased to supplement fiscal expenditure, leading to a deterioration in the value of fiat currency.
The gold standard is also mentioned in "Rich Dad Poor Dad." According to this book, Rich Dad was worried that "one day the gold standard would disappear and there would be rumors that the US dollar would no longer be exchangeable for something with tangible and intrinsic monetary value."
At that time, Rich Dad was ringing the alarm bell that the world would be in an uproar once the gold standard ended. At that time, Mr. Kiyosaki did not fully understand the content, but he wrote, "As time goes by, I have come to understand the meaning of those words better."
In the section "To the Readers from Robert" of "Rich Dad's Unfair Advantage," it states the following.
Right now, there is an abundance of money in the world. Trillions of dollars are wandering around looking for a place to go. This is because governments around the world are continuously printing trillions of dollars worth of "counterfeit money"—also called "fiat currency."
The government does not want to create a global recession. Therefore, it continues to print worthless money. This is the reason why the prices of gold and silver rise, and why people who save money suffer losses.
Currently, there are many countries, such as the United States and Japan, where debt is expanding, and there are also movements to implement policies that further increase debt. Additionally, there is a view that President Trump’s attempt to early nominate the next candidate for the Chairman of the Federal Reserve is threatening the independence of the central bank, which is also lowering the value of the US dollar.
One of the main reasons why Mr. Kiyosaki is attracting attention is that the content and claims of his books are increasingly aligning with the current global situation.
3-4. The Importance of Acquiring Financial Knowledge
Another important point noted in Rich Dad's teachings is the necessity to master "financial literacy." Financial literacy refers to the ability to read and write about money, the ability to understand numbers (accounting skills), and the ability to read the flow of money.
And the first important thing is to understand the difference between "assets" and "liabilities," and on that basis, continue to purchase assets, as Rich Dad taught. He explains that what determines what an asset is, is not words but numbers.
Mr. Kiyosaki writes in "Rich Dad Poor Dad" that "it can be said that this is what those who want to become rich should know." The teachings of the rich dad recorded in this book are as follows.
Assets put money in my pocket.
Debt takes money out of my pocket.
For example, many people consider a "home" that they purchase through a mortgage to be an "asset," while the rich dad thinks of it as a "liability." This difference is something that Kiyosaki learned from his rich dad, and he emphasizes that understanding this distinction and continuing to buy assets is crucial for becoming wealthy.
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4. Summary
This article summarizes the reasons Mr. Kiyosaki recommends Bitcoin and the content of his books.
Please note that Mr. Kiyosaki's claims and the teachings of Rich Dad are not always correct. For example, if the value of a home exceeds the remaining balance of the mortgage, it will result in money in your pocket.
In fact, Mr. Kiyosaki wrote in "Rich Dad Poor Dad" that he wants the teachings of Rich Dad to be taken as "guidance" rather than as "answers."
On the other hand, concerns about fiat currency and the ability to utilize Bitcoin to alleviate those concerns have also been pointed out by other experts. Additionally, there are remarks from experts emphasizing the importance of the differences between assets and liabilities, as well as the necessity of financial literacy, as taught by Rich Dad.
Cryptocurrencies come with risks, but there are investment methods such as staking and lending that aim to earn yields, not just capital gains from the appreciation of cryptocurrencies.
If you are interested in investing and managing cryptocurrencies, how about continuing to learn about the ever-evolving world of cryptocurrencies and first enhancing your financial literacy? In addition, if you decide to actually invest and manage, it is recommended to start with a small amount within a range you can afford.
Frequently Asked Questions | The Relationship Between Robert Kiyosaki and Cryptocurrency
Q1. In Mr. Kiyosaki's book, is there any mention of cryptocurrencies or Bitcoin?
Yes. The book "Rich Dad's 'This is Fake!'" published in 2019 contains positive views on Bitcoin and blockchain technology.
In response to the question, "Do you think Bitcoin is real money?" Mr. Kiyosaki answered as follows.
The answer is yes. But not just Bitcoin. I believe that blockchain technology will change the world because it is more trustworthy than government money.
For the same reason, I prefer gold and silver. Gold and silver are far more trustworthy than government officials, banks, and pension funds.
The book also states that "there is no doubt that cryptocurrencies and blockchain will become the money of the future."
Q2. What are your thoughts on altcoins (cryptocurrencies other than Bitcoin)?
Regarding altcoins, a cautious stance is being shown. In December 2022, many altcoins were pointed out on X (formerly Twitter) to be considered securities by the U.S. Securities and Exchange Commission (SEC), posing legal risks.
On the other hand, it is stated that Bitcoin is classified as a commodity like gold and silver, and is considered a more reliable asset.
However, it is clear that in May 2024, they mentioned purchasing Ethereum (ETH) in a YouTube video, indicating that it is not a complete denial. Nevertheless, in recent years, there has been a strong tendency to focus on recommending Bitcoin.
Q3. Do you have any opinions on stablecoins and CBDCs (Central Bank Digital Currencies)?
Mr. Kiyosaki has not made any clear statements regarding stablecoins. However, given his frequent expression of distrust towards fiat currencies, it is difficult to believe that he has a positive view of stablecoins (digital assets linked to fiat currencies).
In February 2024, they also expressed a strong opposition to central bank digital currencies (CBDCs), labeling them as a "means of government surveillance over citizens" and expressing concerns that they could lead to violations of privacy and freedom.
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