The dollar has reacted favourably to the Federal Reserve’s decision to raise interest rates to historical levels, gaining ground at the expense of other global fiat currencies. Notable among the currencies performing poorly versus the dollar is the British pound.
Robert Kiyosaki, author of the personal finance book “Rich Dad, Poor Dad,” believes the dollar’s strength will be temporary despite its recent success.
In a tweet published on October 1, Kiyosaki stated that the dollar might fall in early 2023 and proposed silver as a potential hedge against a possible dollar meltdown.
BUYING OPPORTUNITY: if FED continues raising interest rates US $ will get stronger causing gold, silver & Bitcoin prices to go lower. BUY more. When FED pivots and drops interest rates as England just did you will smile while others cry. Take care
— therealkiyosaki (@theRealKiyosaki) October 2, 2022
In a recent tweet, Kiyosaki indicated that the United States and the United Kingdom had a historical connection that may affect the financial markets.
“AMERICA’s BIRTHPLACE is NEW ENGLAND. Old ENGLAND died this week. The 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 the Old English of Old England. Think & act with NEW vigour,” said he.
Potential market collapse
The current Kiyosaki stance on the dollar comes after he warned that the world markets will likely undergo a catastrophic crash and that investors should invest in cryptocurrencies before the dollar’s replacement.
Simultaneously, Kiyosaki had previously predicted the dollar’s demise, referring to it as fake money, and advised investors to purchase silver, which he said would increase to almost $500.
In general, other fiat currencies are declining as their various central banks strive to match the practices of the Fed. Notably, there are indications that the Fed will continue its rate hikes, as cutting rates would be disastrous for the soaring inflation.
Intriguingly, the strong dollar has directly resulted in losses in other global fiat currencies, with most investors opting to hedge using Bitcoin (BTC). In this instance, Finbold claimed that citizens of the United Kingdom and the European Union are selling pounds and euros at record rates to purchase Bitcoin.
Bitcoin & USD are the top performing assets.
Bitcoin trade activity has reached a three-month high despite the asset’s price settling below $19,000 in a year marked by significant falls.
As investors view Bitcoin as a hedge, fiat currency is being dumped, while others want to profit from arbitrage. The event demonstrates Bitcoin’s potential and capacity to fulfil its fundamental idea of functioning as a hedge against inflation.
Bitcoin’s price has retreated in tandem with the stock market, but macroeconomic factors have overcome this trend. Notably, despite Bitcoin and the cryptocurrency industry’s downturn, Finbold announced on September 26 that digital currencies and the dollar compete are competing to become the best-performing assets during the second half of 2022.