The dollar has responded favorably to the Federal Reserve boosting interest rates to historical levels, outperforming other global fiat currencies. Notably, one currency that is struggling versus the dollar is the British pound.
Despite the dollar’s good performance, Robert Kiyosaki, the author of the personal finance book “Rich Dad, Poor Dad,” thinks its strength will be transitory.
On October 1, Kiyosaki indicated that the dollar may crash early in 2023 but offered silver as a potential alternative asset to protect against such a crash.
“Will U.S. dollar follow English Pound Sterling? I believe it will. I believe U.S. dollar will crash by January 2023 after Fed pivots. To profit from crash of U.S. $ I bought many more U.S. silver Buffalo rounds. Silver is a bargain,” said Kiyosaki.
In a previous tweet, Kiyosaki also suggested that the United States and England share a historical bond that might spill over the financial markets.
“AMERICA’s BIRTHPLACE is NEW ENGLAND. Old ENGLAND died this week. Old English Pound died this week, as did old English pensions. Is America’s NEW ENGLAND next? Remember crashes make the rich richer. Don’t be a victim like Old English of Old England. Think & act with NEW vigor” he said.
Potential market collapse
The latest Kiyosaki stance on the dollar follows his earlier warnings that a “catastrophic meltdown” in the world markets is coming, and that investors should consider investing in cryptocurrencies before they takeover the dollar.
Kiyosaki had previously predicted the downfall of the dollar, calling it false money, and advised investors to choose silver, which he estimated might rise to roughly $500.
As other central banks try to follow the Fed’s practices, all fiat currencies are generally declining. Notably, there are indications that the Fed will stick to its plan of rate increases because decreasing rates would lead to catastrophically high inflation.
Intriguingly, the strong dollar has resulted in losses in other global fiat currencies, leading investors to primarily use Bitcoin (BTC) as a hedge. In this instance, people from the UK and the EU are selling the pound and the euro at historic rates in order to buy bitcoin.
Best performing investments include bitcoin and the dollar
A surge in Bitcoin trading volume that has reached a three-month high underlines the enthusiasm even if the asset’s price has been consolidating below $19,000 in a year marked by major falls.
Investors are selling off their fiat because they see Bitcoin as a hedge, while others want to make money through arbitrage. The development emphasizes Bitcoin’s potential and capability to live up to its guiding premise of serving as an inflation hedge.
In general, macroeconomic considerations have trumped Bitcoin corrections, which have generally followed stock market corrections. It’s important to note that despite the decline in Bitcoin and the cryptocurrency market, CoinCu stated on September 26 that the dollar and cryptocurrencies are vying to be the best-performing assets in the second half of 2022.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu