Bitcoin News Today: Kiyosaki: Fiat's 1971 Collapse Dooms 60/40, Boosts Bitcoin as Lifeline

Robert Kiyosaki, author of Rich Dad Poor Dad, has declared the traditional 60/40 investment portfolio obsolete, arguing that its foundation collapsed when the U.S. dollar abandoned the gold standard in 1971. In multiple public statements across social media and interviews, Kiyosaki criticized the model's reliance on fiat currency and government debt, labeling the U.S. government as "the largest debtor nation in history" and its bonds as "IOUs from a bankrupt government." He advocates for a shift toward tangible assets such as gold, silver, Bitcoin, and Ethereum, which he claims offer superior long-term value preservation amid rising inflation and systemic debt. Kiyosaki's stance aligns with Morgan Stanley's recent 60/20/20 allocation model, which reduces bonds to 20% and allocates 20% to gold, a move Kiyosaki praised as a step toward financial security .

The author's critique extends to Bitcoin's role in a post-60/40 world. Kiyosaki predicts a dramatic correction in asset prices, including Bitcoin, gold, and real estate, driven by unsustainable global debt levels and monetary expansion. However, he also envisions a subsequent bull market cycle, with Bitcoin potentially surging to $10 million per coin by late 2025. This forecast is rooted in his belief that the U.S. dollar's credibility is eroding due to hyperinflationary risks, historical precedents like Germany's Reichsmark, and the Federal Reserve's "Marxist" policies. While his $10 million target has drawn skepticism-some users noted his repeated bullish predictions over years-Kiyosaki maintains that Bitcoin's scarcity and decentralization make it a superior hedge against fiat devaluation .

Market dynamics reflect Kiyosaki's concerns. Bitcoin recently retreated below $118,000 after hitting $123,000, with whale activity and exchange inflows signaling profit-taking. Institutional adoption, however, remains robust, as 21 companies added $810 million in Bitcoin holdings last week. Kiyosaki linked these short-term fluctuations to broader macroeconomic fragility, including $37 trillion in U.S. national debt and sticky inflation. He emphasized that asset bubbles, including those in stocks and precious metals, are vulnerable to bursting, urging investors to prioritize "real assets" like Bitcoin and gold for wealth preservation .

Kiyosaki's philosophy contrasts sharply with traditional financial planning. He dismissed the 60/40 model as a "magic wand" that failed to account for the post-1971 fiat era. Instead, he promotes a diversified approach combining gold, silver, Bitcoin, rental real estate, and commodities. Gold, in particular, has outperformed stocks and bonds over multiple decades, a fact Kiyosaki attributes to its role as a store of value. His personal strategy includes Bitcoin at $6,000–$9,000 entry points and a focus on income-generating assets like oil wells and cattle, which he claims enabled his financial independence over 30 years ago .

Analysts have offered mixed perspectives on Kiyosaki's framework. Market analyst Shanaka Anslem noted that the 60/40 model's decline stems from changing monetary regimes, not inherent flaws, and proposed a "barbell" strategy emphasizing scarcity assets like Bitcoin. Meanwhile, Morgan Stanley's 60/20/20 model reflects a broader institutional shift toward gold as a hedge against inflation. Critics, including Warren Buffett, remain skeptical of Bitcoin's utility, dismissing it as "worthless" due to its lack of intrinsic value. However, bullish forecasts from figures like Cathie Wood ($1.5 million by 2030) and Eric Trump ($1 million by 2025) underscore the crypto asset's polarizing appeal .

Kiyosaki's warnings about systemic collapse and Bitcoin's potential have gained traction amid heightened volatility. The U.S. Federal Reserve's aggressive rate hikes to combat inflation-now at 3.3%-have strained risk assets, while Bitcoin's price remains sensitive to macroeconomic shifts. Kiyosaki's advocacy for decentralized alternatives reflects a growing sentiment that traditional systems are unsustainable. As he reiterated, "It's time to listen to rich people versus financial planners," a call to action for investors to reassess their exposure to fiat-based portfolios in favor of assets perceived to transcend political and monetary instability .

Source: [1] CoinCentral (https://coincentral.com/robert-kiyosaki-predicts-major-asset-crash-says-bitcoin-will-drop-too/)

[2] Yahoo Finance (https://finance.yahoo.com/news/robert-kiyosaki-predicts-10-million-180032909.html)

[3] Cointelegraph (https://cointelegraph.com/news/robert-kiyosaki-bitcoin-gold-silver-fake-money)

[4] CoinEdition (https://coinedition.com/kiyosaki-declares-60-40-portfolio-dead-as-morgan-stanley-adds-gold-allocation/)

[5] TradingView (https://www.tradingview.com/news/u_today:29f6f1507094b:0-robert-kiyosaki-slams-60-40-investment-rule-picks-bitcoin-and-ethereum/)

[6] Cryptopolitan (https://www.cryptopolitan.com/robert-kiyosaki-predicts-bitcoin-at-10m/)