Robert Kiyosaki Explains Bitcoin’s Rise Using Two Economic Laws Exposing Fiat’s Weakness
Robert Kiyosaki, the author of Rich Dad Poor Dad, recently shared his thoughts on why Bitcoin is rapidly gaining influence over traditional fiat currencies. In a post on social media platform X on January 25, Kiyosaki linked Bitcoin’s surge to two key economic laws: Gresham’s Law and Metcalfe’s Law. According to Kiyosaki, these principles illustrate why Bitcoin is challenging the dominance of fiat currencies like the U.S. dollar.
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Kiyosaki started with Gresham’s Law, explaining that “when bad money enters a system, good money goes into hiding.” He argued that inflation and excessive printing of U.S. dollars have devalued the currency, making it “bad money.” On the other hand, he sees assets such as gold, silver, and Bitcoin as “good money” that maintain their value. “Good money—gold, silver, and Bitcoin—has been hiding from fake U.S. dollars for years,” he remarked, reinforcing his critique of fiat currencies.
Moving on to Metcalfe’s Law, which states that the value of a network increases with its size, Kiyosaki drew parallels with Bitcoin’s growing influence. He compared Bitcoin’s network effect to the dominance of large companies like McDonald’s over small businesses. “Network marketing, which I endorse, has more power than small business entrepreneurs for the same reason,” Kiyosaki noted. He also reflected on his own success, saying that his “Rich Dad” brand gained power through its global network of bookstores and Amazon.
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Kiyosaki’s latest remarks fit with his ongoing warnings about the U.S. dollar’s eventual collapse, driven by excessive debt and inflation. He also reaffirmed his belief that Bitcoin could reach $250,000 this year, as its growing network and role as a store of value continue to challenge traditional financial systems.
