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Real estate guru Robert Kiyosaki isn\\u2019t placing ALL his eggs in the real estate basket. He\\u2019s recommending Bitcoin as a way to protect yourself against the death of the dollar. The Rich Dad, Poor Dad author believes that the dollar is going to fail, and when it does, it will \\u201ccrash the whole economic system.\\u201d (1)

Hi I\\u2019m Kathy Fettke and this is the Real Estate News for Investors. Thanks for joining me and don\\u2019t forget to hit the subscribe button for our podcast.

Kiyosaki has been tweeting a lot lately about Bitcoin. He just tweeted: \\u201cBITCOIN to $50,000. Great news for Bitcoin holders. Bad news for mom and pop. The primary reason I invest in Bitcoin, gold, & silver is because I do not trust our leaders, the Fed, Treasury, nor the stock market. Unfortunately mom and pop who save money do. Take care.\\u201d

According to Benzinga, he pointed out in an email that \\u201cBitcoin is up over 200% from last year\\u201d and that other cryptocurrencies are also up significantly. He asks his readers if that sounds like crypto is dead and says what is going to die is the dollar. He\\u2019s even suggesting that the whole economy will go down with it.

Outside the Economic System

He is suggesting that people protect themself with a form of currency, like Bitcoin, that is \\u201coutside the economic system.\\u201d But he says it\\u2019s important to choose cryptocurrencies that are decentralized, so they cannot be regulated by any government agencies or officials.

His book \\u201cRich Dad, Poor Dad\\u201d is well-known among real estate investors. It has been a New York Times bestseller and has sold tens of millions of copies in more than 50 languages in more than 100 countries. The book tells the story of two realities \\u2014 the rich dad who built wealth as an savvy entrepreneur and real estate investor and the poor dad who struggled at a full-time job and never gained financial security.

Hard Assets Will Hold Value

Kiyosaki encourages financial literacy, and has recommended hard assets, like real estate, along with precious metals, and now cryptocurrencies. These assets would hold their value if the economy does collapse. As Kiyosaki would argue, they would also hold their value much better during times of inflation. (2) And there\\u2019s a lot of uncertainty in that department right now.

The Consumer Price Index has risen to an annual rate of 5.4%, after another .5% increase in July. (3) If you remove food and energy from the mix, the annual rate of inflation is slightly lower at 4.3%. But that\\u2019s still well above the Fed\\u2019s target rate of 2% and the economic conditions driving prices higher have not resolved.

If you\\u2019ve gone shopping for food, or a home, or a car, or gas to put in your car, you\\u2019ll have noticed how much prices have risen. The Fed acknowledges that inflation has been more persistent than it expected, but is still expecting prices to settle back down when things like supply chain shortages resolve, the labor market reaches full employment, and the economy gets back to normal.

Dollar vs. Bitcoin

The government has been printing a lot of money to keep the economy afloat. According to Kiyosaki and many economists, it\\u2019s going to be tough to impossible to pay it all back. On the other hand, Bitcoin is limited in supply so it cannot be diluted by making more and more Bitcoin. As the Bicoinist writes \\u201conly 21 million BTC can or will ever exist.\\u201d That makes it more stable that a currency that can be manufactured at will, like the dollar.

This is why Kiyosaki is so big on Bitcoin, and other cryptocurrencies. What\\u2019s a good buy-in price? I\\u2019m not here to give investment advice, but like any kind of investment, you buy on the dips. Right now Bitcoin is rallying off a recent low. It hit a low point of $31,000 in July and is now approaching the $50,000 mark, once again. (4)

Real Estate for Financial Stability

I am not personally recommending Bitcoin as an investment. You\\u2019ll have to discuss that with your financial advisor. I am a firm believer in the value of real estate as a way to build wealth. Like Bitcoin and precious metal, there is a finite amount of real estate in the world. It\\u2019s a hard asset that might fluctuate in value, but will always be worth something substantial so long as there are human beings on this earth.

If you\\u2019d like to learn more about that kind of investing, you can join RealWealth for free at newsforinvestors.com. As a member, you have access to the Investor Portal where you can view sample property proformas and connect with our network of resources, including experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more.

You\\u2019ll find links to our sources for this episode in the show notes. And please remember to hit the subscribe button, and leave a review!

Thanks for listening. I\'m Kathy Fettke.

Links:

1 - https://www.benzinga.com/markets/cryptocurrency/21/08/22277486/bitcoin-and-dogecoin-will-rise-as-us-dollar-is-dying-rich-dad-poor-dad-author-robert-kiyos

2 - https://bitcoinist.com/why-this-finance-author-advocates-bitcoin-over-gold-and-real-estate/

3 - https://www.bls.gov/cpi/

4 - https://www.cnbc.com/2021/08/13/bitcoin-just-jumped-above-47000-and-could-be-on-a-straight-path-to-50000-analysts-say.html