Robert Kiyosaki, author of the best-selling personal finance book “Rich Dad Poor Dad”, threw another financial warning shot, this time aimed at the US dollar and a potential competitor – a gold-backed stablecoin from the BRICS countries (Brazil, Russia), India, China and South Africa).
Kiyosaki, a longtime supporter of “real money” such as gold, silver and Bitcoin, fears that BRICScoin could trigger hyperinflation in the U.S., causing the dollar to lose its global dominance and ultimately collapse.
Hyperinflation or hyperbole?
While Kiyosaki paints a stark picture of a dollar deluge engulfing the U.S. economy, experts are divided on BRICScoin’s true impact. The very existence of the stablecoin is still under discussion within the BRICS alliance.
If this happens, its main goal will likely be to facilitate internal trade between member countries, potentially reducing their dependence on the US dollar for international transactions.
Currently in South Africa, a country I love. Watching and listening to rumors about what will happen when the BRICS countries, Brazil, Russia, India, China and South Africa produce a BRICS cryptocurrency, possibly backed by gold. If BRICS Gold Crypto Becomes Trillions of Fraudulent Money, Fiat US Dollars…
— Robert Kiyosaki (@theRealKiyosaki) May 12, 2024
This change could undoubtedly undo the dollar’s global hegemony, but financial experts are more cautious than Kiyosaki when it comes to predicting hyperinflation. The American economy, despite the challenges it faces, continues to play a significant role. A complete collapse of the dollar seems unlikely in the near future.
About hyperinflation and stablecoins
What exactly is BRICScoin and why is Kiyosaki so afraid of it? Stablecoins are cryptocurrencies pegged to real-world assets such as gold to prevent wild price swings often associated with conventional cryptocurrencies.
Bitcoin is currently trading at $62.584. Chart: TradingView
A gold-backed BRICScoin would theoretically provide stability and potentially challenge the US dollar’s dominance in international trade, particularly with commodities such as oil currently priced in dollars.
Kiyosaki: prophet or provocateur?
Kiyosaki is no stranger to bold financial projections. Although his “Rich Dad Poor Dad” series sold millions of copies, some of his earlier predictions did not come true.
His dire warnings about the US dollar and hyperinflation should be taken with a pinch of salt, especially given his vested interest in promoting alternative assets such as gold and Bitcoin.
Beyond the noise: building a resilient portfolio
The BRICS stablecoin, if it emerges, is unlikely to become an overnight revolution. However, it could signal a change in the global financial landscape. The United States, facing a potential erosion of its dollar dominance, may need to focus on strengthening its own economic fundamentals.
Featured image from Getty Images, chart from TradingView
