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If you know Robert Kiyosaki, it’s no surprise that he has something to say about crypto skeptics during this latest BTC crash.
After bitcoin took an almost $40,000 swan dive, the Rich Dad, Poor Dad author was quick to take to X to tweet his thoughts, and reignite a seemingly one-sided beef with legendary Berkshire Hathaway CEO Warren Buffett (1).
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Buffett is known for calling crypto “rat poison” (2) and has maintained he doesn’t believe anyone should invest in something that produces nothing.
Crypto started losing steam in October, and November has brought on a massive decline. The Street reported that within one 24-hour period, “approximately 122,000 crypto traders have been liquidated and over $310 million has been wiped out” (3). Some argue that the true cost was much higher, almost $400 billion (4).
But many crypto diehards are not put off by these market shakeups, considering the coin’s history of crashes, and Kiyosaki is one of the most vocal supporters of the cause.
Kiyosaki rips into Buffett’s anti-crypto stance
On X, Kiyosaki led his extra-long tweet with a declaration that Warren Buffett “trashes” Bitcoin, before explaining that, although the nonagenarian is “arguably the smartest and maybe the richest investor in the world,” the billionaire calls crypto “speculation” and “gambling.”
During the 2022 Berkshire Hathaway annual meeting, Buffett was asked about his bitcoin disdain, and he made his opinion clear (5).
“Now, if you told me you owned all of the bitcoin in the world and you offered it to me for $25, I wouldn’t take it, because what would I do with it? I’d have to sell it back to you one way or another — it isn’t going to do anything,”
The Oracle of Omaha explained that he doesn’t see the value in “something that depends on the next guy paying you more than the last guy got,” and contrasted it with productive assets that produce tangible value, like apartments and farms.
“The apartments are going to produce rentals, and the farms are going to produce food … if I’m trying to get rid of [bitcoin], you know, people will say ‘why should I buy some bitcoin from you? I mean, why don’t you call it Buffettcoin, make your own?’”
Meanwhile, Kiyosaki continued his tweet saying, “Doesn’t WB know that stocks crash, real estate crashes, and US govt Bonds the “safest” investments in the world are at present being “dumped” by the Japanese and Chinese Central Banks?”
And although he doesn’t trust the Federal Reserve Bank, U.S. Treasury or Wall Street, “apparently Buffet does.”
While Buffett may have likened bitcoin to the intangible idea of “Buffettcoin,” Kiyosaki said he invests in crypto specifically because Buffett and the government can’t make it:
“I invest in Bitcoin and Ethereum knowing they can boom and bust, because the Fed, the US Treasury, nor Buffet can produce Bitcoin or crypto.”
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
The Kiyosaki investment strategy
Kiyosaki continued to explain his investing belief system in the post, noting that he calls crypto the “people’s money,” real gold and silver “god’s money,” and stocks, bonds and ETFs “fake” or “counterfeit money.”
So who does Kiyosaki blame for why so many investors flock to these “fake” assets? “Our Marxist school systems,” that is. He argues schools fail to teach financial education, which is what inspired his Rich Dad Company 25 years ago.
If you agree with Kiyosaki and you want to get in on the “people’s money,” now that crypto is crashing, it might be a good time to break into the bitcoin market, since you can buy during the dip.
For those looking to take advantage of this lower price, platforms like Robinhood Crypto allow users to purchase some of the most popular coins on the market. You can buy and sell with as little as $1, and you won’t be charged significant trading fees or commissions.
Robinhood has the lowest trading cost on average in the U.S. — meaning you could get up to 1.9% more crypto compared to trading on other platforms.
And if you’re not comfortable with the risks crypto presents, Kiyosaki’s other favorite — gold — could provide a safer alternative asset to invest in. While the price of gold reached all-time highs this year, peaking at $4,326 in October (6), it has since dropped to $4,077 due to broader market uncertainty (7).
One way to invest in gold that can also provide significant tax advantages is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold — making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties. Thor Metals is also 100% American-owned and operated.
If you prefer physical gold to its digital cousin, you can learn more today via Thor Metals’ free information guide. Even better, you can get up to $20,000 in free metals on qualifying purchases.
The Buffett investment strategy
Buffett’s statements around crypto have never been positive, and his belief in tangible assets makes for a straightforward investing strategy that even novice investors can easily follow.
Always a proponent of low-cost, “set it and forget it” long-term index fund investing, the key to his strategy is getting started as soon as possible.
If you prefer Buffett’s tried-and-true strategy, but you’re not sure how to get started, a simple investment platform like Acorns can help.
Acorns makes investing early easy, even for the uninitiated investor, by simply turning your extra change into investments on every purchase you make.
This is how it works: If you buy lunch for $15.30, Acorns will round up the price to $16.00 and invest the 70-cent difference into a smart portfolio of ETFs — the kind Buffett recommends. Watch as those coins snowball into a sizable investment throughout the year, with zero work on your part.
And if you’re ready to supercharge your investment account, Acorns can even accept a monthly contribution to your portfolio. New users can also get a $20 bonus investment when you set up a recurring monthly deposit.
The neutral strategy
If you’re unsure which path is right for you, the best thing to do is work with an advisor you trust to develop a plan that suits your risk tolerance and investing timeline.
If you’re not sure where to find a qualified advisor, consider Advisor.com. Just answer a few quick questions and provide your ZIP code to be matched with the best potential advisors for your needs.
Book a no-obligation call with your favorite picks to find the best advisor for you.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
@theRealKiyosaki (1); CNBC (2); The Street (3), (4); Berkshire Hathaway (5); CBS News (6); Goldprice (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.