Investment Dilemma: Kiyosaki, author of 'Rich Dad Poor Dad', clarifies his stand between ETFs and Bitcoin
Renowned financial educator and author of "Rich Dad, Poor Dad," Robert Kiyosaki, has emphasized the distinction between owning Bitcoin Exchange-Traded Funds (ETFs) and actual Bitcoin. According to Kiyosaki, ETFs represent a "paper" claim or exposure to Bitcoin, rather than holding the real digital asset itself.
In a world where financial systems can be flipped overnight, Kiyosaki likens owning Bitcoin ETFs to having a picture of a gun for personal defense—it may look like protection or ownership, but it doesn’t provide the true security or control of having the actual gun, or in this case, the actual Bitcoin.
Kiyosaki cautions against relying on paper assets like Bitcoin ETFs because they do not grant physical possession or direct control over the underlying commodity. This means investors are dependent on institutions managing the ETFs, which poses risks—if these institutions fail to maintain adequate reserves or face liquidity crises, the paper claim might become worthless or inaccessible.
In times of financial turmoil, holding a paper claim (ETFs) is far less secure than controlling the actual asset, such as real Bitcoin, gold, or silver. Kiyosaki's warning extends beyond market exposure, focusing on ownership, custody, and survival.
While Kiyosaki acknowledges that ETFs make investing easier and more accessible for average investors, he stresses the importance of understanding these differences and knowing when to hold "real" assets versus paper representations. His caution highlights the risk that in times of systemic financial stress, possession of paper assets could fail to protect investors, urging them to prefer bearer assets held directly when possible.
In summary, according to Robert Kiyosaki:
- Bitcoin ETFs = paper ownership/exposure, not real possession.
- Actual Bitcoin = real asset you fully control and can safeguard.
- Caution: Paper claims can fail or become worthless if institutions collapse or crises occur.
- Hence, he recommends understanding risks and holding real assets for personal security and true ownership.
Kiyosaki's advice is not just about knowing when to rely on one type of asset versus another but also about understanding the difference between real assets and paper assets and how to move between them. As a financial survivalist, Kiyosaki offers advice on topics beyond stocks and portfolios, including sovereignty and preparedness. His warning against Bitcoin ETFs is a testament to his belief that in high-stakes situations, paper (digital slips) will not provide protection.
In light of potential financial establishment upheavals, owning Bitcoin Exchange-Traded Funds (ETFs) can be misleading, resembling more of a symbolic shield rather than a true fortress, much like a picture of a gun compared to the actual weapon.
Furthermore, the distinction between Bitcoin ETFs, Ethereum ETFs, or any other paper assets and actual cryptocurrencies like Bitcoin lies in the control and security they offer. A direct investment in the digital currency gives investors the advantage of holding the actual asset, unlike ETFs that are contingent on managing institutions.
