Kiyosaki: Bond Crash Signals Bitcoin as Safe Haven?
Key Takeaways
Robert Kiyosaki and Max Keiser are raising concerns about potential economic collapse in Western nations. As bond markets falter, investors are increasingly looking to Bitcoin, gold, and silver as safe stores of value.
Veteran investor Robert Kiyosaki is cautioning about a possible global financial crisis, citing a 24% drop in European bonds and escalating political instability. He's advising investors to seek refuge in gold, silver, and Bitcoin [BTC] to safeguard their portfolios.
Kiyosaki's Economic Warning
Kiyosaki highlighted growing risks, particularly in France, where he anticipates social unrest. He also pointed to significant declines in government bonds globally:
- U.S. Treasuries: Down 13%
- European Bonds: Down 24%
- British Bonds: Down 32%
Kiyosaki's stark warning included the statement that Europe is nearing a breaking point, with potential for significant upheaval.
Despite Bitcoin's recent dip below $108,000, Kiyosaki maintains a bullish outlook on cryptocurrency as a hedge against market volatility.
He also noted a decline in confidence in Western nations' debt management, evidenced by Japan and China's continued selling of U.S. Treasuries in favor of gold and silver. Kiyosaki criticized traditional financial planning strategies, particularly the 60/40 portfolio of bonds and stocks, given the 13% drop in American Treasury bonds since 2020.
Keiser and Others Echo Concerns
Echoing Kiyosaki's sentiments, prominent Bitcoin advocate Max Keiser, advisor to El Salvador's President Nayib Bukele, suggested that investors diversify into crypto to protect against looming instability.
Shanaka Anslem Perera argued that Europe is mirroring the decline of past empires due to debt, wars, and disconnected leadership. Perera emphasized that gold preserves memory, Bitcoin offers exile, and true sovereignty remains the only secure asset during times of change.
Europe vs. El Salvador: Diverging Bitcoin Paths
Europe and El Salvador are taking different approaches to Bitcoin.
In Europe, André Dragosch, Bitwise’s European head of research, reported significant growth in BTC-traded contracts in Q3, totaling over 140,600 BTC – equivalent to almost a full year's newly mined supply.
However, the European Banking Authority (EBA) released draft Regulatory Technical Standards (RTS) to regulate crypto-asset exposure, aiming to standardize crypto risk management across the EU.
Conversely, El Salvador is reinforcing its Bitcoin adoption. The National Bitcoin Office divided its 6,300 BTC reserve into 14 addresses, each holding a maximum of 500 BTC. A new Investment Banking Law now allows regulated banks to hold Bitcoin and offer crypto services to accredited investors, positioning El Salvador as a growing crypto hub attracting foreign investment.