Escape the Counterfeit Trap: Robert Kiyosaki’s Top 3 Assets to Buy Instead of USD

Are you worried about your savings losing value? Renowned author and financial guru Robert Kiyosaki, the man behind the best-selling book ‘Rich Dad Poor Dad,’ is sounding the alarm once again. This time, his target is fiat money, particularly the United States dollar (USD), which he bluntly labels as ‘counterfeit.’ If you’re invested in crypto or just trying to navigate the turbulent financial waters, Kiyosaki’s latest warning and recommended alternatives are something you need to pay attention to.

Kiyosaki’s ‘Counterfeit Money’ Revelation: A Throwback to Toothpaste Coins?

In a recent X post that grabbed everyone’s attention, Kiyosaki shared a rather unconventional story from his childhood. Believe it or not, the financial expert started his entrepreneurial journey young, very young! He recounted how he used to melt down old toothpaste tubes – yes, the ones made of lead back in the day – to create his own makeshift currency.

Imagine a young Kiyosaki, in his makeshift ‘mint,’ diligently “producing lead nickels, dimes, and quarters.” It’s quite a picture, isn’t it?

However, this early venture into currency creation was short-lived. The ‘poor dad’ figure in his life, a character inspired by real individuals and representing a conventional mindset, quickly intervened. He cautioned young Robert about the illegality of his actions, explaining it was ‘counterfeiting’ and could land him in jail. That was the end of Kiyosaki’s “toothpaste tube smelting business.”

Why Does Kiyosaki Call USD ‘Counterfeit’? The Nixon Shock and Fiat Money

Fast forward to the present day, and Kiyosaki’s understanding of ‘counterfeit’ money has evolved, but his skepticism about fiat currency remains strong. He argues that the real ‘counterfeiting’ began on a much larger scale in 1971.

Referring to the historical moment when President Nixon severed the US dollar’s direct link to gold, Kiyosaki asserts that “in 1971, President Nixon took the dollar off the gold standard, and the US Treasury and Federal Reserve Bank began counterfeiting money.” In his view, by removing the gold backing, the USD became, in essence, “fake money.”

But what’s the big deal? Why does this historical event matter to you and your finances today?

• Loss of Intrinsic Value: Prior to 1971, the dollar was directly convertible to gold, giving it intrinsic value. Removing this link meant the dollar’s value became based on faith and government decree – fiat.
• Inflationary Pressures: Without the gold standard, governments can print more money more easily. Kiyosaki and many others believe this leads to inflation, devaluing your savings over time.
• Wealth Gap Widening: Kiyosaki argues that this system of ‘fake money’ benefits the wealthy and those close to the money printing presses, exacerbating the gap between the rich and the poor.

Kiyosaki’s message is clear and direct: “People working for ‘Fake Money’ is one of the primary reasons why the gap between rich and poor grows. Don’t be a loser. Stop working for and saving ‘Fake Money.’”

Top 3 Assets to Buy Instead of ‘Fake Money’ USD

So, if the USD is ‘counterfeit,’ according to Kiyosaki, where should you put your money? He doesn’t leave us hanging with just the problem; he also offers solutions. Drawing inspiration from recent endorsements by former President Donald Trump, Kiyosaki highlights three key assets:

“Get smarter and save gold, silver, and Bitcoin.”

Let’s break down why Kiyosaki champions these three assets as escapes from the ‘fake money’ trap:

1. Gold: The Timeless Store of Value

Gold has been valued for millennia, acting as a store of wealth across cultures and economic systems.

• Hedge Against Inflation: Gold tends to maintain or increase its value during inflationary periods when fiat currencies lose purchasing power.
• Safe Haven Asset: In times of economic uncertainty or geopolitical instability, investors often flock to gold, driving up its price.
• Tangible Asset: Unlike digital currencies or stocks, gold is a physical asset you can hold, offering a sense of security.

2. Silver: Gold’s More Volatile Sibling with Upside Potential

Silver shares many of gold’s characteristics as a precious metal but with its own unique dynamics.

• Industrial Demand: Silver has significant industrial applications in electronics, solar panels, and medicine, adding another layer of demand beyond investment.
• More Affordable than Gold: Silver is generally more accessible to smaller investors due to its lower price per ounce.
• Higher Volatility, Higher Potential Gains: Silver tends to be more volatile than gold, meaning it can offer higher percentage gains during bull markets, but also steeper drops during downturns.

3. Bitcoin: The Modern Digital Gold

Bitcoin, the leading cryptocurrency, is increasingly being seen as ‘digital gold’ and a hedge against traditional financial systems.

• Decentralization: Bitcoin operates outside of government and central bank control, appealing to those skeptical of centralized financial systems.
• Limited Supply: Like gold, Bitcoin has a capped supply of 21 million coins, potentially making it a deflationary asset over time.
• Growing Adoption: Despite its volatility, Bitcoin adoption by institutions and individuals continues to grow, suggesting increasing mainstream acceptance.

Donald Trump’s Bitcoin Endorsement: A Sign of the Times?

Kiyosaki isn’t alone in his growing bullishness on Bitcoin. He specifically highlighted recent comments from Donald Trump, referring to him as a “financially brilliant man” for endorsing Bitcoin and silver as ‘smart money.’

Trump’s presence at the Bitcoin 2024 conference in Nashville, Tennessee, where he declared his intention to make the US the “crypto capital of the world,” sent ripples of excitement through the crypto community. This endorsement from a major political figure signifies a potential shift in the regulatory landscape and mainstream acceptance of cryptocurrencies.

The impact of Trump’s words was almost immediate. Social sentiment around Bitcoin surged, reaching a 16-month high, reflecting increased positive conversations online.

And it’s not just sentiment; the market reacted too. Bitcoin’s price has been on an upward trend, demonstrating a 3.13% increase in the last 24 hours, a 3.25% gain over the past week, and a significant 13.94% jump in the last month, reaching around $69,520 (as of July 29th). This price movement further fuels the narrative of Bitcoin as a viable alternative asset.

Are You Ready to Escape the ‘Counterfeit Trap’?

Robert Kiyosaki’s warnings about fiat currency and his recommendations for gold, silver, and Bitcoin might seem radical to some, but they resonate with a growing number of investors seeking to protect their wealth in an uncertain economic climate. Whether you fully agree with his ‘counterfeit money’ label or not, the underlying message is crucial: diversification and considering alternative assets are key in today’s financial world.

Are you going to continue working for and saving what Kiyosaki calls ‘fake money,’ or will you explore the potential of gold, silver, and Bitcoin to safeguard your financial future? The choice, as always, is yours.