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R. Kiyosaki names investment mistake made by ‘poor people’

R. Kiyosaki names investment mistake made by 'poor people'
Paul L.
Finance

Financial educator and author Robert Kiyosaki has identified a key misstep that he believes keeps many people poor.

According to Kiyosaki, the mistake centers on breaking the “laws of money,” specifically Gresham’s and Metcalfe’s laws, as he explained in an X post on May 25.

Under Gresham’s Law, which highlights how bad money drives good money out of circulation, Kiyosaki argued that many people today are working for and saving depreciating fiat currencies like U.S. dollars. 

Instead, he recommended storing wealth in assets with intrinsic value, such as gold, silver, and Bitcoin (BTC).

“Most poor people are poor because they break the 2 most important laws of money. <…> In 2025, poor people are working for and saving fake money and not saving real money, gold, silver, or Bitcoin,” the author said. 

Meanwhile, Metcalfe’s Law focuses on the value of networks. Kiyosaki noted that successful companies like McDonald’s and FedEx thrive because they operate within strong, expansive networks. 

Why Kiyosaki prefers Bitcoin

In contrast, small, isolated businesses without network effects often struggle to generate wealth.

The investor applied this same logic to cryptocurrency, highlighting Bitcoin’s network effect compared to many other digital assets that lack widespread adoption.

“I do not save US dollars because the US dollar violates Gresham’s law. I do not invest in shit coins without networks, because they violate Metcalfe’s Law.  That’s why I save gold, silver, and acquire Bitcoin. They obey the laws,” Kiyosaki said. 

Kiyosaki’s message is consistent with his long-standing advocacy for investing in alternative assets, which he believes are likely to soar. 

For instance, as reported by Finbold, the Rich Dad Poor Dad author predicts Bitcoin could trade at $1 million, gold could reach $25,000, and silver might climb to $75.

Interestingly, these three assets stood out in 2025 amid widespread economic uncertainty, including disruptions from trade tariffs. Kiyosaki has long warned of an impending market crash, which he believes may already have unfolded.

Nevertheless, the author remains especially bullish on Bitcoin, emphasizing that its fixed supply virtually guarantees sustained price appreciation, making it a stronger asset than gold.

Disclaimer: The featured image in this article is for illustrative purposes only and may not accurately reflect the true likeness of the individuals depicted.

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