12 hours ago
Investor and “Rich Dad Poor Dad” writer Robert Kiyosaki warned investors to beware of holding Bitcoin (BTC), golden and metallic done exchange‑traded funds, saying those paper‑based instruments are nary substitute for the existent thing.
Kiyosaki likened ETFs to having lone a “picture of a gun” for self‑defense, utile successful bully times but useless successful a crisis. He said ETFs marque assets specified arsenic Bitcoin and bullion much accessible to mundane investors, but they don’t springiness investors carnal possession of the underlying commodity.
He wrote:
“Sometimes it’s champion to person existent gold, silver, Bitcoin, and a gun.”
Kiyosaki’s skepticism isn’t new, helium has antecedently told his followers to ditch “fake money,” meaning fiat currency, and crook to bearer assets similar Bitcoin, golden and metallic arsenic a hedge against ostentation and a weakening U.S. dollar.
He argued that insubstantial claims connected hard assets tin go worthless if the instauration issuing them fails to clasp capable reserves. He added that a situation of assurance tin trigger a tally connected an ETF oregon slope that doesn’t person capable liquidity, risking collapse.
ETFs person exploded successful popularity arsenic much investors question vulnerability to cryptocurrencies and precious metals without dealing with cold‑storage wallets oregon vaults.
Several spot Bitcoin ETFs, introduced successful the US this year, regularly commercialized billions of dollars’ worthy of shares. But that convenience comes astatine a cost, Kiyosaki contends: you are buying a claim, not the plus itself.
However, ETF experts similar elder Bloomberg expert Eric Balchunas judge specified fears are unfounded. He told CoinTelegraph that ETFs are taxable to strict safeguards and ineligible separation betwixt issuers and custodians
He said:
“All the shares of the ETF are connected to existent Bitcoin; it’s a one‑for‑one ratio, determination is nary paper.”
Balchunas acknowledged that the crypto assemblage is often suspicious of accepted finance, but noted the ETF assemblage has operated for 30 years with “a sterling reputation.”
Balchunas said that affluent Bitcoin holders mightiness really beryllium safer utilizing ETFs, due to the fact that self‑custody tin marque them targets for theft and ransom schemes. He added that carnal golden and metallic besides transportation retention and information costs that galore retail investors can’t afford, and a regulated money mightiness beryllium the amended stake for them.
The statement highlights a broader hostility betwixt advocates of decentralized assets and the accepted fiscal system. While products similar spot Bitcoin ETFs person brought billions successful inflows and opened integer assets to a wider audience, skeptics specified arsenic Kiyosaki judge thing beats idiosyncratic possession successful a crisis.
The station Robert Kiyosaki slams ETFs for being ‘paper versions’ of Bitcoin, golden and silver appeared archetypal connected CryptoSlate.
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