Bitcoin as Rule-Based Money vs. Fiat Currency as Debt-Based Money - Robert Kiyosaki

Renowned author Robert Kiyosaki supports Raoul Pal’s concept of Bitcoin entering the “banana zone,” indicating a massive price surge.

Kiyosaki, a proponent of Bitcoin as rule-based money, contrasts it with debt-based fiat currency and advises against purchasing Bitcoin ETFs.

Instead, he advocates owning real assets like gold, silver, and Bitcoin. Discover why Kiyosaki believes Bitcoin’s value will continue to rise and how he protects his investments from financial institutions.

BTC Enriches, While Fiat Currency Impoverishes

Robert Kiyosaki, renowned for his popular book series “Rich Dad Poor Dad,” expressed his support on June 26, 2024, for Global Macro Investor (GMI) founder Raoul Pal’s opinion that Bitcoin (BTC) is entering the “banana zone.”

The term “banana zone,” coined by Raoul Pal, signifies a significant price surge. Kiyosaki explained, “The banana zone refers to the state when Bitcoin’s price skyrockets in a parabolic fashion, prompting people to say, ‘I wish I had bought more.’”

Kiyosaki shared that a few years ago, Raoul Pal encouraged him to invest in Bitcoin. Consequently, Kiyosaki purchased 30 BTC when the price was $6,000 and continues to buy Bitcoin every month.

He explains the reasoning behind Bitcoin’s current entry into the banana zone: “Bitcoin is rule-based money, whereas government-issued fiat currency is debt-based money.”

Bitcoin, as a decentralized currency with a pre-designed system limiting the total supply to 21 million BTC, contrasts with fiat currency, which is supported by credit creation and fiscal deficits that governments and central banks can freely issue.

Therefore, rule-based money like BTC is believed to maintain its value over the long term.

In his recent long post, Kiyosaki stated, “Rule-based money makes you wealthy, while fake, debt-based money makes you poor,” and advised, “Hold on tight as Bitcoin enters the banana zone.”

“I Won’t Buy Bitcoin ETFs,” Says Kiyosaki

In the cryptocurrency industry, there is growing interest in cryptocurrency ETFs, including Bitcoin spot ETFs. However, on June 28, 2024, Robert Kiyosaki stated, “I won’t buy Bitcoin ETFs.”

He remarked, “Gold, silver, and Bitcoin ETFs are all fake assets.” Kiyosaki explained that ETFs allow for more trading than the actual holdings, pointing out that “with gold ETFs, for example, one ounce of gold can be sold over 100 times through one ETF.”

Kiyosaki strongly advocates for owning real gold, silver, and Bitcoin, stating, “I own real gold, silver, and Bitcoin, and I keep them away from banks and Wall Street bankers for safekeeping.”

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