Virtual currencies as hedging tools? Cleese warns of financial collapse impact

“Rich Dad, Poor Dad” author Robert Kiyosaki recently posted a warning, believing that a large-scale financial collapse is imminent, which will cause severe impacts on traditional assets. To prepare for this anticipated economic storm, he recommends investors actively allocate funds into safe-haven assets such as cryptocurrencies to protect their wealth. This viewpoint has once again sparked widespread discussion in the market regarding asset allocation strategies.

Large-Scale Economic Collapse Approaching, Cryptocurrencies and Precious Metals as Shields

Kiyosaki pointed out in his recent market analysis: “A massive crash is imminent, and millions will face liquidation risks.” He believes that in such an environment, investors holding assets like gold, silver, Bitcoin, and Ethereum will be better protected.

This warning stems from his long-term observation of the fragility of the global financial system. Kiyosaki repeatedly emphasizes that traditional fiat currencies, represented by the US dollar, are continuously losing purchasing power, with inflation pressures and policy risks eroding investors’ real asset values. In this context, cryptocurrencies, as decentralized assets, are viewed alongside physical assets like gold and silver as effective tools against fiat devaluation and economic collapse.

According to the latest market data, Bitcoin is currently trading at approximately $90.29K, and Ethereum at about $3.04K. The volatility of these cryptocurrencies is, in fact, seen by some investors as a hedging option during times of economic uncertainty.

Mindset Differences Determine Wealth, Emotional Intelligence Surpasses IQ

Kiyosaki recently shared a thought-provoking story. When he showed a friend his Bitcoin holdings worth millions of dollars, the friend’s attention was focused on the recent paper loss of several hundred thousand dollars in the account, completely ignoring the substantial underlying value of the holdings.

This conversation highlights a fundamental mindset difference. Kiyosaki believes that what truly distinguishes the wealthy from the average person is not IQ but EQ (Emotional Quotient). He explains that many people, driven by fear, hesitate in the face of risk and ultimately miss opportunities to create wealth; successful investors, on the other hand, can find a balance between fear and greed, which is the core secret to long-term wealth accumulation.

From Paper Losses to Millions in Wealth, the Logic of Long-Term Cryptocurrency Holding

Kiyosaki states that he remains optimistic about the prospects of cryptocurrencies. He believes Bitcoin could potentially double in value in the future and even break through the $200,000 mark. This optimism is not based on short-term fluctuations but on his belief in the long-term value of cryptocurrencies.

He emphasizes that the key to investing in cryptocurrencies is a shift in mindset. Don’t just focus on short-term volatility and losses; instead, look at future opportunities. Under the expectation of a financial collapse, the logic of allocating to cryptocurrencies becomes clearer — they are no longer just speculative tools but also vital means of asset protection.

Fiat Currency Devaluation Accelerates, Asset Allocation Strategies Must Be Upgraded

Kiyosaki’s criticism of the fiat system has never ceased. He points out that as global central banks continue their easing policies, the purchasing power of traditional currencies will keep declining. In this broader context, early positioning in cryptocurrencies, precious metals, and other non-traditional assets has become a wise move.

This is not alarmist talk but based on long-term market trend observations. More and more investors are recognizing that, under the dual pressures of economic collapse and inflation, the decentralized nature and scarcity design of cryptocurrencies offer more protection mechanisms compared to traditional assets. Regardless of how the global financial system fluctuates, cryptocurrency holders can, to some extent, hedge against systemic risks.