Signature Bank, Silicon Valley Bank (SBV) and Silvergate Bank, three major U.S. banking institutions have collapsed, and in the face of this, financial advisor Robert Kiyosaki believes it is an appropriate time to buy bitcoin (BTC).
The author of the personal finance book Rich Dad, Poor Dad warned in a tweet today that once the bailout is activated, “more fake money will flood into the ailing economy” of the United States.
In doing so, he points to the fact that the Federal Reserve (Fed) is saving SVB customers by activating its “Bank Term Funding Program” (BTFP), as announced in a statement yesterday.
It means that, through its program, the Fed and the Federal Deposit Insurance Corporation (FDIC) are guaranteeing the assets of all customers and preventing customers of the 17th largest bank in the United States from facing problems.
For Kiyosaki, the bailout activated by the Fed is evidence that it will activate its expansive monetary policy to inject liquidity into the economy. A measure that he considers a failure, as he has observed on other occasions.
In fact, precisely one month ago, Kiyosaki pointed out that a “giant” economic debacle was underway, as well as the possibility of a great depression. On that occasion, as he emphasizes now, bitcoin is among the scarce assets he recommends to flee from the money that governments issue at will through central banks.
Bitcoin vs. state-issued money.
Last month Kiyosaki predicted that bitcoin could reach the price of USD 500,000 by 2025. In fact, the first of the cryptocurrencies kicked off the week of March 13 with a sharp rise amid the U.S. bank failures.
The price of bitcoin rose more than 18% in the last 24 hours to USD 24,500. In doing so, it recovered from the fall it had seen over the past two weeks. Meanwhile, gold also responded to the upside by rising 2% to around USD 1,910.
Now, in the midst of the collapse of three U.S. banks, the question remains as to the extent to which there may be a contagion spreading the effects to the banking sector and to what extent what happened will affect the economy in general. At this point, several members of the cryptocurrency community are warning that nothing will be able to contain the collapse that is underway.
For her part, U.S. bitcoiner Stacy Herbert believes that the machinery that was keeping the U.S. economy afloat has failed. “The U.S. empire has failed. It is finished and there is nothing they can do now to stop the collapse of the institutions and the vast machinery that had kept them afloat, including the dollar-based capital markets long manipulated by insiders and oligarchs,” she noted.
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