In the wake of the Federal Reserve raising interest rates to historic lows, the dollar reacted positively, gaining ground at the expense of other global fiat currencies. In particular, the pound sterling is one of the currencies that performs poorly against the dollar.
Despite the strength of the dollar, the author of the book on personal finance ‘Rich dad, poor dad’ Robert Kiyosaki believes that the strength of the US currency will be short-lived.
In a Tweeter on October 1, Kiyosaki noted that the dollar could potentially collapse in early 2023, but suggested that silver could be an alternative asset to hedge against a possible dollar collapse.
“Will the US dollar follow the British pound? I believe him. I think the US dollar will collapse by January 2023 after the Fed pivot. To take advantage of the US dollar’s collapse, I bought a lot more US Silver Buffalo Bullets. Money is good business,” Kiyosaki said.
In a previous TweeterKiyosaki also suggested that the United States and England share a historical bond that could spill over into financial markets.
“AMERICA’S BIRTHPLACE is NEW ENGLAND. Old ENGLAND died this week. The old English pound died this week, as did the old English pensions. Is America’s NEW ENGLAND next? Remember that crashes make the rich richer. Don’t be a victim like the old English of old England. Think and act with NEW vigor,” he said.
Possible stock market crash
Kiyosaki’s latest stance on the dollar comes after he previously warned that global markets are likely to experience a “catastrophic crash”, and that investors should venture into cryptocurrencies before usurping the dollar.
At the same time, Kiyosaki had previously predicted the end of the dollar, calling it fake money while advising investors to go for silver which he said could climb to around $500.
In general, other fiat currencies fall as their respective central banks attempt to follow Fed policies. Notably, there are signs that the Fed will continue with its hike schedule, as lowering rates would mean an end to soaring inflation.
Interestingly, the strong dollar directly translated into losses in other global fiat currencies, with investors primarily turning to Bitcoin (BTC) as a hedge. In this case, Finbold reported that individuals in the UK and EU were selling both the pound and the euro at record highs to acquire Bitcoin.
Top Performing Assets in Crypto and Dollars
The interest is evidenced by a spike in Bitcoin trading volume that hit a three-month high despite the asset price consolidating below $19,000 in a year characterized by significant corrections.
Investors are abandoning fiat as they view Bitcoin as a hedge, while others intend to profit from arbitrage. The development highlights Bitcoin’s potential and ability to fulfill the founding principle of acting as an inflation hedge.
In general, Bitcoin corrected in line with stock markets, offset by macro factors. It should be noted that despite the correction in Bitcoin and the cryptocurrency sector, Finbold reported on September 26 that digital currencies and the dollar are competing to become the best performing assets in the second half of 2022. .
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