Bitcoin News Today: Kiyosaki's 60/40 Rejection: Fiat's Instability Fuels Hard Asset Shift

Robert Kiyosaki, author of Rich Dad Poor Dad, has publicly dismissed the traditional 60/40 investment model-60% stocks and 40% bonds-as obsolete, arguing it lacks relevance in today's economic environment. In a series of social media posts and public statements, Kiyosaki attributed the model's demise to the 1971 removal of the U.S. dollar from the gold standard by President Richard Nixon. "The BS ratio died in 1971," he asserted, criticizing the dollar's reliance on fiat currency and the U.S. government's growing debt. Kiyosaki framed bonds as risky assets, describing them as "IOUs from a bankrupt U.S. Government controlled by the Marxist Fed," and questioned the viability of investing in a system he views as unstable.

Kiyosaki advocates for a revised allocation strategy, echoing Morgan Stanley's 60/20/20 model, which allocates 60% to stocks, 20% to bonds, and 20% to gold. He emphasizes gold's historical outperformance against stocks and bonds, though he acknowledges limited public discourse on this point. Beyond gold, Kiyosaki champions Bitcoin and Ethereum as "scarcity assets" with zero counterparty risk, alongside real estate, oil wells, and cattle as tangible, income-generating assets. His personal portfolio includes gold and silver coins, rental properties, and crypto holdings, which he claims enabled him to retire financially free over 30 years ago.

The 60/40 model's decline has been debated by market analysts. Shanaka Anslem, a financial analyst, argued that the model itself did not fail but rather the economic regime that supported it-marked by falling interest rates and quantitative easing-has shifted. Current conditions, including negative real yields and inflation-driven bond volatility, have eroded the diversification benefits once provided by bonds. Anslem proposed a "barbell" strategy emphasizing scarcity assets (e.g., Bitcoin and gold), resilient short-term bonds, and growth-oriented equities. This aligns with Kiyosaki's critique but adds nuance by acknowledging the evolving role of equities in a low-yield environment.

Market data underscores the shift in investor behavior. Bitcoin and Ethereum have seen renewed interest amid concerns about the U.S. dollar's long-term stability. Bitcoin recently traded near $121,000, while Ethereum hovered around $4,343, despite short-term volatility. Gold also reached record highs, trading at $4,017 per ounce. These trends reflect a broader de-dollarization movement, with the U.S. dollar's share of global reserves declining to a 30-year low of 56.3% in Q2 2025. Citadel CEO Ken Griffin noted that investors are increasingly favoring hard assets over fiat currency, with the dollar losing 10% of its value since January 2025.

Critics of the 60/40 model highlight longevity risk as another key factor. With global life expectancy rising and healthcare costs escalating, traditional retirement portfolios may lack sufficient growth to sustain extended lifespans. Kiyosaki's emphasis on real assets and crypto aligns with this concern, offering alternatives that he claims retain intrinsic value independent of government-issued debt. However, his approach diverges from mainstream recommendations, which often advocate for tactical adjustments to 60/40 portfolios-such as increasing equity exposure or incorporating inflation-protected securities-rather than abandoning the framework entirely.

Kiyosaki's stance has sparked debate within the financial community. While some investors align with his skepticism of fiat currency and government debt, others caution that Bitcoin and Ethereum's volatility poses risks unsuitable for conservative portfolios. The shift toward alternative assets also raises questions about liquidity and accessibility for retail investors. Despite these concerns, Kiyosaki's influence highlights a growing trend toward decentralization and tangible value in investment strategies, particularly amid geopolitical and economic uncertainties.

Source: [1] Coinedition.com (https://coinedition.com/kiyosaki-declares-60-40-portfolio-dead-as-morgan-stanley-adds-gold-allocation) [2] 8figures.com (https://8figures.com/blog/portfolio-allocations/the-60-40-portfolio-in-2025-still-relevant-or-outdated) [3] Financialexpress.com (https://www.financialexpress.com/trending/robert-kiyosaki-says-magic-wand-of-6040-is-dead-bets-on-this-investment-approach/4004549/) [4] U.today (https://u.today/robert-kiyosaki-slams-6040-investment-rule-picks-bitcoin-and-ethereum) [5] Yahoo Finance (https://finance.yahoo.com/news/robert-kiyosaki-advocates-buying-bitcoin-103342585.html)