Financial expert Robert Kiyosaki warns about the potential consequences of banks failing and highlights the benefits of cryptocurrencies as an alternative in a recent interview.
In an interview Fox Business, financial expert Robert Kiyosaki warns about the consequences of banks failing 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 prepare for a worst case scenario.
Kiyosaki believes that the current financial system is flawed because it is based on debt.
Banks are constantly creating and lending money out to people, but they don’t actually have the money they are lending on hand. This issue means that the entire system is built on a house of cards that could come crashing down at any moment.
So, what would happen if some of the 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 in a downward spiral.
The government will step in to prop up the system which will cause inflation, but it will not be enough to prevent a complete financial meltdown. This is where other assets like gold, silver, and bitcoin come in, according to the author and investor.
Kiyosaki believes that bitcoin and crypto are viable alternatives to the traditional banking system. Cryptocurrencies are decentralized, meaning 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, meaning that it can be used anywhere in the world, unlike fiat. It is also highly divisible, which makes it perfect for smaller peer-to-peer transactions.
Of course, there are risks when it comes to investing in cryptocurrencies as well. The market is volatile, and the value of cryptocurrencies can fluctuate wildly. However, Kiyosaki believes that the potential rewards and benefits of crypto outweigh the risks.