In the wake of the Federal Reserve raising interest rates to historical levels, the dollar has reacted positively, gaining at the expense of other global fiat currencies. Notably, the British pound is among the currencies performing poorly against the dollar.
Despite the dollarâs strong performance, the author of thepersonal finance bookâRich Dad, Poor DadâRobert Kiyosaki, believes the U.S. currencyâs strength will be short-lived.
In atweeton October 1, Kiyosaki noted that the dollar will potentially crash early 2023 but suggested that silver might be an alternative asset to cushion against a possible dollar crash.
âWill U.S. dollar follow English Pound Sterling? I believe it will. I believe U.S. dollar will crash by January 2023 after Fed pivots. To profit from crash of U.S. $ I bought many more U.S. silver Buffalo rounds. Silver is a bargain,â said Kiyosaki.
In a previoustweet, Kiyosaki also suggested that the United States and England share a historical bond that might spill over the financial markets.
âAMERICAâs BIRTHPLACE is NEW ENGLAND. Old ENGLAND died this week. Old English Pound died this week, as did old English pensions. Is Americaâs NEW ENGLAND next? Remember crashes make the rich richer. Donât be a victim like Old English of Old England. Think & act with NEW vigor,â he said.
Possible market crash
The latest Kiyosaki stand on the dollar comes after he previously warned that the global markets will likely experience a âcatastrophic crashâ, and investors should venture intocryptocurrenciesbefore they usurp the dollar.
At the same time, Kiyosaki had earlierprojected an end for the dollar, terming it fake money while advising investors to opt for silver which he suggested might surge to about $500.
In general, other fiat currencies are falling as their respective central banks attempt to keep up with the Fed policies. Notably, there are signs the Fed will continue with the hiking schedule since lowering rates would spell doom for the skyrocketing inflation.
Interestingly, the strong dollar has directly translated to losses in other global fiat currencies, with investors mostly turning to Bitcoin (BTC) as a hedge. In this case, Finboldreportedthat individuals from the United Kingdom and the European Union are selling both the pound and Euro at record levels to acquire Bitcoin.
Crypto and dollar best performing assets
The interest is highlighted by a spike inBitcoin trading volume that has hit a three-month highdespite the assetsâ price consolidating below $19,000 in a year characterized by significant corrections.
Investors aredumping fiat since they consider Bitcoina hedge, while others intend to profit from arbitrage. The development highlights Bitcoinâs potential and ability to fulfill the founding principle of acting as a hedge against inflation.
In general, Bitcoin has corrected in line with the stock markets, outweighed by the macroeconomic factors. It is worth noting that despite Bitcoin and thecryptocurrency sectorâscorrection, Finboldreportedon September 26 that digital currencies and the dollar are competing to emerge as the best-performing assets during the second half of 2022.
