Amid the recent banking turmoil in the US, different financial gurus and important figures have shared their thoughts on the most secure options for investors to protect themselves. Recently, “Rich Dad Poor Dad” Author Robert Kiyosaki warned investors about a looming banking crisis and advocated for Bitcoin as a “parachute” for the landing.
Bitcoin, A Parachute For The Banking Crashlanding?
Robert Kiyosaki warned his 2.5 million followers on X (former Twitter) about the potentially turbulent times ahead for the banking system and world economies.
The author of “Rich Dad, Poor Dad” compares the US Navy Flight School to the current financial system. Student pilots learn how to proceed when the plane starts to fail, making them able to land under turbulent conditions.
However, this is not the case for “financial losers,” as inexperienced investors usually find themselves clueless about the steps to take after a banking collapse and subsequent economic crash.
BAIL OUT, BAIL OUT, BAIL OUT: In US Navy Flight School, student pilots learn how to fly and how to crash their plane. Financial losers will lose money because they do not know what to with their money as banks fail and world economy crashes. For many years I have warned, “Buy…
— Robert Kiyosaki (@theRealKiyosaki) February 8, 2024
He suggested investors “bailout” as he predicted that a soft landing was not on the horizon. Additionally, he reiterated his position on the assets he believes serve as a shield in an economic crash, naming Bitcoin, gold, and silver as “parachutes for your soft landing.”
Kiyosaki’s latest warning comes after the recent concerns of a repeat of the 2023 regional banking crisis. Almost a year ago, Silvergate, Silicon Valley, and Signatures caused havoc in the banking sector after their collapses, which led to economic turmoil in the US.
Now, concerns about the stability of the regional banking sector in the US have significantly increased after the recent reports of major losses from New York Community Bancorp (NYCB) in the last quarter of 2023. The bank bought Silvergate after the 2023 crisis and saw its shares’ price plummet by 45% a week ago, hinting at instability in the sector.
A Shield Stronger Than Gold
Other prominent figures in the financial sector have recently spoken about the looming banking collapse and have given investors options to shield themselves from an economic crisis.
BitMex Co-founder Arthur Hayes directly commented on the NYCB news, forecasting impending bankruptcy for NYCB’s future. Additionally, he suggested that Bitcoin’s price could reach $1 million, reaffirming his trust in the digital asset.
Oh baby …
From junk to bankrupt, that’s the future.
— Arthur Hayes (@CryptoHayes) February 7, 2024
Recent comments from Ark Invest CEO Cathie Wood suggested that the idea that Bitcoin is a “flight to safety” is reasserting now that the spot Bitcoin Exchange-Traded Funds (ETF) have been approved by the US Securities and Exchange Commission (SEC). Wood also shared her belief that the digital asset will surpass gold in the future:
Relative to gold, Bitcoin has been rising. There’s now a substitution into Bitcoin and we think that is going to continue now that there is a less friction-filled way to access Bitcoin.
Bitcoin has had an overall bullish run throughout the first month of 2024. The approval of spot Bitcoin ETFs by the US SEC fueled the bullish sentiment as the crypto-based investment products launched.
However, the outflows from the Grayscale Bitcoin ETF (GBTC) raised momentary concerns and drove the price under the $40,000 price range.
Since then, the price has steadily been rising above, and BTC has gained 6% in the last 7 days, per data from CoinGecko. At the time of writing, BTC is trading at $44,764.5, a 4.2% surge in the last 24 hours.
Bitcoin is trading at $44,764.5 in the hourly chart. Source: BTCUSDT on TradingView.com
Featured image from Unsplash.com, Chart from TradingView.com