Currencies

Why Are You Poor? Author Robert Kiyosaki Blames ‘Two Broken Laws of Money’


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His remarks come amid ongoing volatility in global markets, persistent inflation, and growing scepticism towards central bank policies.

In a recent statement shared on social media, Rich Dad Poor Dad author Robert Kiyosaki explained why many people remain poor, pointing to two often-overlooked financial principles—Gresham’s Law and Metcalfe’s Law. The 78-year-old finance educator, investor and entrepreneur urged individuals to abandon fiat savings and instead invest in what he calls “real money”: gold, silver, and Bitcoin.
The comments were made in a public post on X (formerly Twitter), where Kiyosaki said, “Most poor people are poor because they break the two most important laws of money.” As quoted by the Financial Express (FE), he further declared, “Savers are losers,” reaffirming his long-held belief that storing wealth in fiat currencies is financially self-defeating.

According to Gresham’s Law, “When bad money enters a system… good money goes into hiding.” Kiyosaki interprets this to mean that fiat currencies—like the US dollar or Indian rupee—lose value over time, driving real value assets into scarcity. “People are poor because they are working for and saving fake money,” he said, referring to fiat money, which he considers inherently flawed.

Instead, he recommends assets with intrinsic or network value. His second pillar is Metcalfe’s Law, which argues that the value of a network is proportional to the square of its user base. He applied this concept to successful enterprises and cryptocurrencies: “McDonald’s is a franchise network. Mom Pop Burgers is not. That’s why they’re poor. FEDEX is a network. Joe’s one-truck delivery is not,” Kiyosaki explained. He continued: “I invest in Bitcoin because it is a network. Most cryptos are not.”

He cited entrepreneur and Bitcoin advocate Michael J. Saylor, the former CEO of MicroStrategy, who once advised: “Only invest in things… a rich person will buy from you.” Kiyosaki used this to emphasise quality over novelty when choosing investments.

In line with this philosophy, Kiyosaki has consistently advised against saving in fiat currency. As reported by FE, he noted: “That’s why I save gold, silver, and acquire Bitcoin. They obey the laws [of money].” He warns that US dollars and other fiat currencies are in violation of these fundamental principles, lacking both intrinsic value and network robustness.

In a related post dated 18 May, Kiyosaki sounded an alarm about what he sees as a looming global financial crisis, stating, “The end is here,” and predicting “millions to be wiped out financially.” His call to action? Bail yourself out—by moving away from traditional currency systems and investing in tangible or decentralised assets.

His remarks come amid ongoing volatility in global markets, persistent inflation, and growing scepticism towards central bank policies. Kiyosaki has repeatedly warned that geopolitical instability, rising debt levels, and currency devaluation could trigger a catastrophic shift in the financial system.





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