U.Today - Financial guru, entrepreneur and author of a popular piece of writing on financial self-literacy "Rich Dad Poor Dad," , took to Twitter to opine on why Bitcoin is important, particularly now, as the overall state debt of the USA continues to grow.
U.S. politicians discuss raising state debt ceiling
Robert Kiyosaki reminded his followers that the state of the U.S. economy is worsening; the state debt of the country keeps growing, and now Congress is discussing the president's suggestion to raise the ceiling of the U.S. debt to $31.4 trillion to avoid a default.Kiyosaki referred to it as "kabuki theater," claiming that the U.S. is bankrupt. Unfunded liabilities on Social Security alone stand at more than $250 trillion. Financial market "derivative assets," he goes on, is measured in thousands of trillions of USD.
The best decision in these circumstances, the financial guru reckons, is to buy more gold, silver and "digital gold" — Bitcoin.
Kiyosaki has been a vocal supporter of Bitcoin for the last several years. In 2020, when the pandemic emerged and the U.S. government started printing trillions of USD to support the economy, he began tweeting that those new dollars were fake since they were backed with nothing and printed out of thin air.
That year alone, more than $6 trillion were printed to be given away to average Americans in the form of "survival checks" and to bail out large businesses and banks. Since the U.S. has continued to print dollars since then, Kiyosaki believes that by the year 2025, the price of Bitcoin thanks to this should jump to about $500,000.
Later on, he changed this prediction to a more modest one: $100,000.
Bitcoin loses momentum
Bitcoin has been dropping over the past week. Since Tuesday, the flagship digital currency has lost around 4.87%, falling from $27,412 to the $26,077 level. By now, BTC has managed to recover a little and is exchanging hands at $26,228.Earlier this week, the president of the Federal Reserve Bank of St. Louis that he believes the Fed is likely to conduct two more rate hikes this year of 25 basis points each.
Each time the Fed has raised interest rates before, this year and last, Bitcoin responded with a price plunge.
As reported by U.Today, earlier this week, legendary commodity trader Peter Brandt voiced a negative prediction for BTC; he spotted a "flag" pattern forming on a chart, which may mean that the leading crypto may extend its recent losses.