Rich Dad Poor Dad author Robert Kiyosaki says he believes that the price of bitcoin will reach $2.3 million, citing a prediction by Ark Invest CEO Cathie Wood. Meanwhile, he said stock, bond, and real estate markets are “set to crash,” and he expects the U.S. to go bankrupt. Robert Kiyosaki Foresees Bitcoin Hitting $2.3 […]
Source link
Robert Kiyosaki, the author renowned for his best-selling book “Rich Dad Poor Dad,” has again captured the public’s attention with his unconventional financial strategies, this time revealing a staggering $1.2 billion in debt. The revelation follows a statement he made in September 2022 via a YouTube short, where he disclosed being $1 billion in debt at the time, accompanied by the caption, “The reason I’m so rich is because I’m in debt.”
In the YouTube video, Kiyosaki explains his financial status, saying, “If you understand history, the reason I pay no taxes is because I borrow money. I’m a debtor.”
He directly addresses his critics and those with contrasting economic ideologies, saying, “And check this out … I mean all you communists out there, check this stuff out … I am a billionaire in debt. You know why? Because I get tax breaks for borrowing money.”
Kiyosaki’s approach to wealth and debt contrasts with more traditional financial advice. He believes that leveraging debt is a key driver of his wealth because of the tax advantages it provides.
Kiyosaki goes on to critique the common financial advice of living debt-free, as popularized by financial expert Dave Ramsey, saying, “And my friend Dave Ramsey says ‘live debt free.’ Well, you’re an idiot. I mean he’s my friend, but I say ‘Dave, I like debt.’”
He acknowledges Ramsey’s caution toward debt saying, “I know but most people can’t handle debt.” This admission highlights a critical divide in financial philosophy — while Kiyosaki sees debt as a tool for wealth accumulation, he concedes that not everyone possesses the financial acumen to manage it effectively.
Kiyosaki’s commentary extends beyond personal finance to critique the broader educational system, arguing, “But that’s why there is no financial education in schools because if you knew how to handle debt you wouldn’t save that crappy dollar you have in your hand. I’d rather borrow the money tax-free.”
Through this statement, he advocates for a more nuanced understanding of debt and finance, suggesting that conventional wisdom on saving and debt avoidance may be limiting for those looking to maximize their financial potential.
The author’s financial strategy capitalizes on the tax benefits associated with borrowing in the United States. The principle at work here is that interest payments on debt, especially when used for investment purposes, can be tax-deductible. This means that the costs of borrowing can effectively reduce the amount of taxable income an individual or entity reports, lowering their overall tax liability.
In the context of Kiyosaki’s investments, particularly in real estate, borrowing money to finance these investments allows him to deduct the interest paid on the debt from his taxable income. This deduction is a significant factor in why he says, “The reason I pay no taxes is because I borrow money.” The tax code in the United States offers provisions that incentivize investment and business activities by allowing deductions for various expenses, including interest on loans that finance productive activities.
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Robert Kiyosaki, ‘Rich Dad Poor Dad’ Author, Says, ‘I Am a Billionaire in Debt’ — And Calls Dave Ramsey An Idiot For Encouraging People To Live Debt-Free originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The crypto community is buzzing with excitement after a renowned finance author predicts an impending Bullish outcome for Bitcoin. The words of the respected financial figure have raised questions and discussions across the crypto community.
Japanese-American entrepreneur and author of the famous Rich Dad Poor Dad book, Robert T. Kiyosaki recently stated in an X (formerly Twitter) post on Thursday, that Bitcoin was poised to reach $135,000 after hitting a $30,000 mark at one point on Friday following rumors of BlackRock’s Bitcoin ETF approval.
Gold will soon break through $2,100 and then take off. You will wish you had bought gold below $2,000. Next stop gold $3,700. Bitcoin testing $30,000. Next stop Bitcoin $135,000. Silver from $23 to $68 an ounce. Savers of fake dollars F’d. Please tell your friends to “Wake up.”…
— Robert Kiyosaki (@theRealKiyosaki) October 20, 2023
With recent predictions suggesting that Bitcoin could gain back its bullish momentum if it surpasses the crucial $30,000 mark, the crypto community found itself filled with hopes that the $30,000 could be sustained. However, at later periods on Friday, Bitcoin dropped back below $30,000 and presently it is trading at $29,714 according to CoinMarketCap.
BTC market cap currently at $581 billion on the weekly chart: TradingView.com
In his post, Kiyosaki also mentioned other investment assets like gold and silver which he believes would soon break resistance and gain more value. He urged people who hold or save “fake” US dollars to become more aware, possibly implying a negative outcome for these investments.
“Gold will soon break through $2,100 and then take off. You will wish you had bought gold below $2,000. Next stop gold $3,700. Bitcoin testing $30,000. Next stop Bitcoin $135,000. Silver from $23 to $68 an ounce,” Kiyosaki stated.
He added “Savers of fake dollars F’d. Please tell your friends to ‘Wake up.’ Take care.”
In a different post on Wednesday, Kiyosaki spoke on the topic of inflation. He stated that inflation has a high effect on the wealth gap, which is the economic disparity between the rich and the rest of the population.
INfLATION makes the POOR &MIDDLE CLASS poorer because they work for & save dollars. Yet INFLATION makes the RICH RICHER. Why? Because today’s rich work for & save Gold, Silver, & Bitcoin.
— Robert Kiyosaki (@theRealKiyosaki) October 18, 2023
Kiyosaki stated that inflation had a crippling effect on the poor and middle class because they work and save US dollars, making them poorer and unable to accumulate wealth without challenges.
In contrast, he said that the rich get even more wealthy during inflation because they save valuable investment assets like Gold, Silver, and Bitcoin. This theory holds some weight seeing that the wealthy usually have more access to financial instruments and assets that appreciate during inflationary periods.
“INfLATION makes the POOR & MIDDLE CLASS poorer because they work for & save dollars. Yet INFLATION makes the RICH RICHER. Why? Because today’s rich work for & save Gold, Silver, & Bitcoin,” Kiyosaki stated.
Featured image from The Daily Hodl
Former FTX CEO Sam “SBF” Bankman-Fried once looked into paying Donald Trump not to run for United States president, according to Michael Lewis, the author of a new book documenting the rise and fall of SBF.
Michael Lewis, author of Going Infinite: The Rise and Fall of a New Tycoon, spoke about the former crypto billionaire and FTX founder in a 60 Minutes interview on Oct. 1.
One of the revelations in the book is that SBF looked into paying Donald Trump not to run for president. “That only shocks you if you don’t know Sam,” said Lewis before adding:
“Sam’s thinking that we could pay Donald Trump not to run for president […] like how much would it take?”
“The number that was kicking around was $5 billion,” he added before saying that SBF was unsure if that number came directly from Donald Trump.
SBF was also looking into the legality of it, according to Lewis, who added that “they were still having these conversations when FTX blew up.”
It just didn’t happen because Bankman-Fried didn’t have the $5 billion any longer, he added.
lol what??
SBF was trying to pay Trump $5 billion not to run again. pic.twitter.com/ffbmfI3R9F
— Brad Michelson (@BradMichelson) October 2, 2023
According to Lewis, SBF saw Trump as trying to undermine democracy in the United States, thinking he “belongs on the list of existential risks.”
Lewis spent more than 70 days in the Bahamas on a dozen different trips to visit SBF in 2022, and the pair became close. “I would stay in spare bedrooms, so I had codes to every room including the penthouse,” he told The Wall Street Journal.
Speaking on the fallout following the collapse of FTX in November 2022, he said:
“It was like the aftermath of Pompeii. Clothes and belongings left behind, frozen in time. Many headed to the airport leaving company cars with the keys inside at the curb.”
Cointelegraph contacted legal representatives for Bankman-Fried and Trump. Mark Botnick, who handles communications for the SBF case, said there was no comment from his legal team.
Related: How long could Sam Bankman-Fried go to jail for? Crypto lawyers weigh in
According to the trial schedule calendar released last week, the high-profile Bankman-Fried trial begins on Oct. 3 with jury selection. The trial begins on Oct. 4.
The trial will involve seven fraud cases against SBF, two substantive charges where the prosecution must convince the jury that Bankman-Fried committed the crime, and five other conspiracy charges.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
