After The First U.S. Bitcoin Exchange-Traded Fund Approval, Robert Kiyosaki Buys More Bitcoins

Robert Kiyosaki is a well-known investor and author of the best-selling personal finance book ‘Rich Dad Poor Dad’, where he challenged traditional views on wealth and investing.

His investment strategy focuses on acquiring assets that generate income and appreciating over time, rather than relying solely on traditional investments like stocks and bonds.

In 2023, he was firmly against fiat money, calling it “trash,” “fake money,” “toilet paper,” and other derogatory terms. He argued that 'rich people' purchase "real assets" and 'poor people' purchase reliabilities. And this is why the rich gets richer, and the poor gets poorer.

While Kiyosaki is known for his firm stance in 'traditional' assets, he also has eyes on more modern source of incomes, including cryptocurrencies.

At this time, Bitcoin, the world’s largest digital cryptocurrency, just witnessed a significant surge, exceeding $47,000.

This increase is attributed to the U.S. Securities and Exchange Commission (SEC) approving 11 new Bitcoin Exchange-Traded Funds (ETFs), marking a pivotal moment in the mainstream acceptance of cryptocurrencies as viable investment options.

Because of this, Kiyosaki also believes that the cryptocurrency is indeed an asset worth buying for a long-term investment.

Kiyosaki, a well-known figure in the personal finance world, is a big fan of Bitcoin, having praised it multiple times over the years, labeling it as one of the three "hottest subjects on Earth," next to gold and silver, due to the increasingly deteriorating value of the U.S. dollar.

Following the first-ever ETF approval by the U.S. Security Exchange Commission, Kiyosaki said that he is buying 5 more Bitcoins, and persuade others to do so as well.

And like ever before, Kiyosaki advises his followers to continue buying precious metals, especially silver, before it runs out.

He said that silver is becoming scarcer. But because its price is still significantly lower than gold, making it a "better bargain as a long-term investment".

Some key aspects of Kiyosaki's investment philosophy, include:

1. Focus on Assets, Not Liabilities: Kiyosaki makes a distinction between assets, which put money in your pocket, and liabilities, which take money out. He encourages investors to prioritize acquiring assets that generate income, such as rental properties, businesses, and even intellectual property like books or patents.

2. Financial Literacy and Education: Kiyosaki emphasizes the importance of financial education and understanding how money works. He believes that many people struggle financially because they lack the knowledge and skills to manage their money effectively.

3. Diversification Beyond Traditional Investments: While Kiyosaki acknowledges the value of traditional investments like stocks and bonds, he advocates for diversifying into alternative assets like real estate, commodities like gold and silver, and even alternative currencies like Bitcoin.

4. The BRRRR Method: Kiyosaki popularized the BRRRR method for real estate investing, which stands for Buy, Rehab, Rent, Refinance, Repeat. This involves purchasing a property below market value, fixing it up, renting it out to generate income, refinancing to cash out equity, and using that money to repeat the process.

5. Entrepreneurship and Business Building: Kiyosaki encourages individuals to explore entrepreneurship and build their own businesses as a path to financial freedom. He believes that owning a business gives you more control over your income and wealth creation than relying on a traditional job.

In all, Kiyosaki's core principles of financial freedom involves financial education, asset acquisition, and diversification.

In many of his videos over the years, the Japanese-American businessman and author has shared that he and his wife Kim had invested a lot, and have together amassed a considerable amount of wealth from their real estate assets, which is the cornerstone of their investment strategy due to the dual reward system that consists of relatively steady rental income and capital appreciation.

While his investment strategies do work, they are also criticized.

Some argue that his advice is overly simplistic and that he doesn't take into account individual circumstances and risk tolerance. Additionally, his predictions about specific asset prices, such as his recent claim that Bitcoin will reach $135,000, have been criticized for being overly optimistic.

Bitcoin and other cryptocurrencies are extremely volatile, and this is the main reason why digital coins have made many rags-to-riches, as well as riches-to-rags.

There are many people who became instant millionaires, whereas they are also many people who instantly became broke because of their cryptocurrency investment.

The approval of the ETF is anticipated to further boost investor confidence and demand for Bitcoin, potentially leading to a positive impact on its price.

The approval of these Bitcoin ETFs is not just a win for the proponents of digital currency but also signifies a significant evolution in the market, reflecting a shift towards broader adoption and enhanced liquidity in the crypto space.