Financial expert Robert Kiyosaki warns about the possible 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 about the consequences of bank failure 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 the 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 to people, but they don’t actually have the money they are lending on hand. This problem means that the entire system is built on a house of cards that could collapse at any moment.
So what would happen if some of the banks failed?
Kiyosaki warns that bank failures could lead to a major economic collapse. People would lose their savings and the value of the dollar would spiral downward.
The government will intervene to prop up the system which will cause inflation, but it will not be enough to prevent a total financial collapse. This is where other assets such as 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, which means that they are not controlled by any government or central authority. For this reason, he affirms, they are more stable and secure than traditional currencies.
Kiyosaki points out that cryptocurrencies have several advantages over traditional currencies. For example, crypto is borderless, which means it can be used anywhere in the world, unlike fiat currency. It’s also highly divisible, making it perfect for smaller 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 that the potential rewards and benefits of cryptocurrencies outweigh the risks.
