It’s A Bitcoin BOOM
As an investor, I’m investing against the U.S. dollar.
Let me be clear: I’m not investing against the U.S.—America is a rich, productive country.
But our dollar is toast. Those who have followed my articles know that in 1971, our dollar stopped being money and became a currency, a piece of paper with ink on it
I meet and talk with people from all over the world. One thing I hear over and over again is: “I’m just an average person… how does an ordinary person—without a lot of training or skills or financial literacy—prepare for the future and the future of money?”
In my opinion, the best way to prepare is to not need money.
Money Is Toxic
After 1971, the U.S. dollar became toxic.
In 1971, the U.S. dollar became debt—an IOU from American taxpayers. As long as the taxpayer did not complain, the presses kept running. Printing toxic money was like giving alcohol to a drunken sailor.
In the first 10 years of this century, the world has gone through three giant crashes. First, the dotcom crash in 2000, then the real estate crash in 2007, followed by the stock market crash in 2008.
Each time the markets crashed, the printing presses were kicked into gear, printing more money, hoping the economy would not collapse. Printed money blew the United States and the world into a bubble.
Today savers are losers, the stock market is in the biggest bubble in world history, and bonds, once safe and secure, are time bombs.
If interest rates start going back up, the bond market may blow up.
Three Assets You Should Own
I own gold and silver because I trust real gold and silver. I do not own gold and silver to make money. Gold and silver are insurance, a hedge against the dying dollar.
The reason they buffer against inflation is that they are tangible assets that are purchased with currency. So when the currency supply increases there are more dollars chasing the same amount of goods.
I own Bitcoin because it’s outside the system.
Below are three assets you should own as a hedge or protection against inflation—which is important when governments are printing a lot of money, as they are today.
Gold is a tangible asset that has held its value throughout history. Gold is real money. A dollar bill, a peso, or a euro is not real money; they are currencies. What’s the difference? Real money has intrinsic value. Currency such as the US Dollar is backed only by a promise.
True money is always currency because it can be used to purchase other items that have value. Currency, however, is not always money because it does not have value by itself.
For example, pull a $20 bill or Euro note from your wallet. Do you think that piece of paper you are holding is really worth $20? No, the paper itself is probably worth about one cent. The only way a currency has value is because people have confidence in the government issuing the currency and a shared agreement that the currency is worth something.
As a hedge against a weakened currency and inflation, gold can be a good investment.
Silver has been a popular subject for the past few years. The public wasn’t talking about silver years ago, but today the price of silver pops up on the TV screen throughout the financial news shows. What makes silver so attractive?
Silver is a consumable commodity. It is used in the manufacture of things such as computers, cell phones, televisions, light bulbs, cars, mirrors, medicine, and water purification.
With the growth of emerging countries, the demand for silver should increase, even as the supply is dwindling.
In fact, for the first time in modern history, there is more gold available throughout the world than silver. It stands to reason that the price of silver should increase as the demand increases.
For the small investor, I believe buying silver coins is a safe bet. As the dollar drops, silver will hold its value or go up. I don’t recommend buying coins for numismatic value (rarity).
In today’s economic environment, it’s better to save silver than to save paper with ink on it,
Bitcoin is soaring again, as it just neared $19,000—doubling where it ended in 2019. It can be argued that no other asset has delivered such strong returns in one of the worst financial markets in history.
Today, billions of people are trapped in a central banking system owned by the mega-rich. As a reminder, the central banks are not elected by the people and do not have to answer to the people. That is why gold and Bitcoin are a threat to central bankers.
Bitcoin is the “gold standard” for cryptocurrencies. Bitcoin is a threat to those who print fake money—fiat currencies.
One Asset You Already Own
“Your mind is your greatest asset, so be careful what you put into it.”
This quote remains as true today as it was 20 years ago.
Your mind is one of the only assets in the world that will never decrease in value. It has infinite returns, as you can always be improving your mind. You can always learn and grow and change your thoughts, which is incredible! There is no endpoint to the growth of your mind.
That’s why at the Rich Dad Company, we view cultivating your mind and increasing your education as the first and most important step to achieving financial freedom.
Investing in this asset means increasing your education, learning new things, trying out new experiences, and taking the time to actively grow your knowledge.
As Benjamin Franklin once said, “An investment in knowledge pays the best interest.”
The best part is, in this day and age, investing in your mind is one of the few assets that doesn’t have to cost you a dime. With the variety of online courses and free lectures available, you can invest in your mind every single day and benefit from the returns.
As with any investment, do your research and make sure you’re educated before you plunk down your hard-earned money.
Editor, Rich Dad Poor Dad Daily