During the recent US banking turmoil, various financial experts and notable figures have offered their perspectives on the most secure investment options for safeguarding against potential risks. Robert Kiyosaki, the author of “Rich Dad Poor Dad,” recently cautioned investors about an impending banking crisis and recommended Bitcoin as a “parachute” for protection.
Bitcoin, A Parachute For The Banking Crashlanding?
Robert Kiyosaki alerted his 2.5 million X (formerly Twitter) followers to the potential turbulence ahead for the banking system and global economies.
Drawing parallels to the US Navy Flight School, Kiyosaki compared the current financial system to student pilots who are trained to handle plane malfunctions, enabling them to safely land under turbulent conditions.
In contrast, inexperienced investors, whom Kiyosaki refers to as “financial losers,” often find themselves at a loss when navigating a banking collapse and subsequent economic downturn.
He advised investors to “bailout,” predicting that a smooth landing was unlikely. Furthermore, he reiterated his support for assets that he believes serve as a protective shield during an economic downturn, citing Bitcoin, gold, and silver as “parachutes for a soft landing.”
Kiyosaki’s latest warning comes in the wake of concerns about a potential reoccurrence of the 2023 regional banking crisis. Nearly a year ago, the collapses of Silvergate, Silicon Valley, and Signatures caused havoc in the banking sector, leading to economic turmoil in the US.
Now, apprehensions about the stability of the US regional banking sector have surged following recent reports of significant losses at New York Community Bancorp (NYCB) in the last quarter of 2023. The bank’s acquisition of Silvergate after the 2023 crisis resulted in a 45% plunge in its share price a week ago, indicating instability in the sector.
A Shield Stronger Than Gold
Other influential figures in the financial sector have also addressed the impending banking crisis and offered investment options to shield against an economic downturn.
BitMex Co-founder Arthur Hayes directly commented on the NYCB news, predicting the bank’s potential bankruptcy and suggesting that Bitcoin could reach $1 million, reaffirming his confidence in the digital asset.
Recent remarks from Ark Invest CEO Cathie Wood also suggested that the concept of Bitcoin being a “flight to safety” is gaining traction now that spot Bitcoin Exchange-Traded Funds (ETFs) have been approved by the US Securities and Exchange Commission (SEC). Wood additionally expressed her belief that Bitcoin will surpass gold in the future:
In comparison to gold, Bitcoin’s value has been rising. There is now a shift towards Bitcoin, which we expect to continue now that there is a less cumbersome way to access it.
Bitcoin experienced a largely bullish trend in the first month of 2024. The approval of spot Bitcoin ETFs by the US SEC bolstered market optimism as crypto-based investment products were launched.
However, concerns were briefly raised by the outflows from the Grayscale Bitcoin ETF (GBTC), causing the price to dip below the $40,000 range.
Since then, the price has steadily climbed, with BTC recording a 6% gain over the last 7 days, according to data from CoinGecko. At present, BTC is trading at $44,764.5, marking a 4.2% surge in the last 24 hours.
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