The author of "Rich Dad, Poor Dad" applies Metcalfe's and Gresham's Laws to explain why Bitcoin is superior to altcoins and fiat money.
Robert Kiyosaki, bestselling author of "Rich Dad, Poor Dad", has publicly explained why he believes Bitcoin is an asset protection tool, while completely rejecting other cryptocurrencies and fiat money. In his latest post on the X platform on 5/24, this veteran investor applied classic economic laws to explain his investment philosophy.
Kiyosaki affirms that he "invests in Bitcoin because it is a network", while "most cryptocurrencies are not". He refuses to invest in what he calls "shit coins" because they violate Metcalfe's Law – a rule stating that a network's value increases with the square of its user count. From this perspective, Bitcoin stands out due to its large decentralized network with millions of global users, creating a network effect that other altcoins cannot match.
This investor compares Bitcoin to successful systems like FedEx or McDonald's, emphasizing that real value comes from being part of a large system, not from individual efforts. This is why he believes most other cryptocurrencies lack real-world acceptance and sustainable use value, and are therefore not worth long-term investment.
Gresham's Law and the Fight Against Fiat Money
Kiyosaki also cites Gresham's Law – "bad money drives out good money" – to criticize fiat money, especially the US dollar. He calls USD "fake money" and declares he does not save in USD because it violates this law. This perspective reflects deep concerns about inflationary public spending and the risk of economic collapse in the United States.
Kiyosaki's solution remains consistent over the years: accumulate gold, silver, and Bitcoin – assets he considers "following rules that create wealth, not poverty". With millions of books sold globally and translated into dozens of languages, Kiyosaki's perspective continues to strongly influence the financial thinking of many investors, especially in the context of global economic instability and increasing inflation.
