Why Crypto Investors Are Missing the Bigger Picture

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0:46Whole Foods Market, make your summer sizzle. This is the Rich Dad Radio Show. The good news and bad news about money. Here's Robert Kiyosaki. Hello, this is Robert Kiyosaki. So before I begin, I'll just give a little bit of my background. I'm an old guy, obviously. So why do I know anything about Bitcoin or crypto and all that? And the reason is, is years and years ago, I was a student of this man here. this is dr r buck mr fuller so in 1981 fuller read this wrote this book here it's called critical path it's the critical path of humanity it's not one of the easier books to read and especially for me since i flunked out of school twice because i'm not very smart but i do like to study i want to say to all you crypto guys out there you guys are small change you think too small it's because there's something far more important than what the price of Bitcoin.

1:48So in this book, Critical Path, which came out in 1981, I began studying with Dr. Fuller. I traveled from Hawaii, where I grew up, to a place called Kirkwood, California, which is the shores of Lake Tahoe in California, on the California side. And a critical path is the path of humanity. And Fuller is known as a futurist. He could predict the future. For example, he predicted the rise the fall of communism and the rise of the internet he said that would happen before the end of the decade and the riot and the fall of communism and he fuller died in 83 by the way so he says by the end of this decade communism would fall and all the internet would appear it appeared in 1989 so he was very very accurate but I predicted the start of the discovery of new elements and all this fuller also predicted what's going on in the world today he said that these tall office buildings would someday be homeless shelters because the economy would collapse so as you know today many of the big high rises throughout the world will someday be homeless shelters just because our economy is collapsing right now which is good news for Bitcoin guys but I'm gonna say it again I'll piss some of you guys off you think too small you gotta think bigger so this is critical path he also predicted in here the rise of Bitcoin and he talked about how these electronic games back then it was held by modems that would give rise to a new form of currency and that's Bitcoin so fuller was way ahead of his time and again he died in 1983 and And I first started studying at Fuller in 1967.

3:38So I went to the Expo 67 in Montreal, Canada. I was at school in New York, went to military school. I hitchhiked to Montreal, Canada to see the World's Fair on the Future. And Fuller's dome, the geodesic dome, was the US pavilion at Expo 67. so i was i was a this 20 year old kid just looking around this dome going holy mackerel because i was looking at the future so that's that's this man here dr r buckminster fuller he was my teacher and he helped me see the future but i'm going to give you some bad news your crypto guys think too small gotta think bigger so the point here is this think bigger because you're onto something very very important so what happened fuller passed away in 1983 and he wrote this book here posthumously it came out after he passed away he died on july 1st 1983 and this came out a few months later it's called the grunge of giants so why am i an old guy speaking to young guys who are crypto heads the reason is because of this book here it's called the grunge of giants i understand how the world is ripped off by grudge grudge stands for gross universal cash in simple terms is the fed it's wall street it's the u.s treasury it's big pharma it's the military industrial complex it's media it's our education system and all that these guys rip us off so the reason I love Bitcoin I love all you crypto heads out there is because you guys are anti-grudge so I may not know as much about crypto as you guys do but what I do know is the bigger picture of what's going on in the world of money so let me say it again your Bitcoin and crypto heads out there you guys think too small you're peeing in the ocean of infinite wealth if you think oh there's 21 million satoshis or whatever they are you know that's small it's massive and I don't really I own some Bitcoin I own some ethereum I also make a lot of money other places because the world of money is much much bigger than Bitcoin so I'll say it again you Bitcoin guys are just peeing in the ocean of money and there's so much money to be made out there and you guys are worried about if cryptos of bitcoins going up or down and all that all things go up and down you know so i i i i got interested in bitcoin when it was at 20k i watched it and it crashed down to i think free it came to seven i watched it again there and then i started buying at nine so i'm still in the money i mean if it if bitcoin drops to 27 i'm back in again it's called i i don't ever i don't ever sell bitcoin i never sell gold i never sell silver i just stash it i hoard it because i don't need money i'm an entrepreneur but bitcoin and ethereum are stores of value same as gold and silver gold and silver are god's money i call bitcoin and crypto people's money so i'll say it again if you guys want to get rich you guys think too small you guys are like me peeing in the ocean thinking I'm a rich man.

7:11The world of money is massive, massive, massive. So that's why I can speak to you from the period of Grunch of Giants, that after I read Grunch, then came this book here. This is by my friend G. Edward Griffin. This is a second look at the Federal Reserve Bank. So the reason I understand Bitcoin and crypto is because I actually did study the Federal Reserve bank system if you guys want to get rich study this system because whether you know it or not the federal reserves the u.s dollar is the reserve currency of the world it became the reserve currency in 1944 in 1971 when i was in vietnam nixon took it off the reserve currency list so the reason i support crypto is because these guys are corrupt and what you're doing is we are it's sympathical working together to prevent the world from ripping these guys off which is part the fed is part of grudge here so if you understand the bigger picture of this you'll understand why i'm talking to you today so i'm an old guy but i studied the biggest picture possible and you guys in crypto are this big think bigger because there's so much money out there i don't know what the heck you're thinking about satoshis and all that stuff for there's so much money to be made i talked to several guys who had made several hundred million dollars in bitcoin the trouble is they don't know what to do with their money you know one guy says well i bought a lamborghini then i bought another ferrari then what do they do you see what happens if you don't understand money and you just happen to get lucky you know you're like megan markle who marries prince harry that's all you crypto guys are you married them into royalty called Bitcoin the story of rich dad poor dad is about the story of my two dads I wrote this book in 1997 after I created this board game cash flow in 1996 so I'm going to tell you how I make money and why you crypto heads can you know assist in the process because otherwise all you guys are gonna do is you're gonna make more money and buy another Lamborghini I mean I have my I have my Rolls Royce downstairs I have my Ferraris I have houses I have a jet and all this but I am an investor first so I made my of the old-fashioned ways an investor so rich dad's rich dad poor to the store but my poor dad who was a head of education for the state of Hawaii very good man PhD went to Stanford Northwest at the University of Chicago.

9:55And as you know, most school teachers know jack about money. Nothing. Absolutely nothing. But they think they're intelligent. And my rich dad was a man who never went to school. He was a man whose father, his father died when he was 13. And he had to take over the family business. So rich dad, man with no education, became a real capitalist. My poor dad, a very good man, was a Marxist, communist. But he didn't know it. because our schools do not teach this. So most of you guys out there, you still think like your mother or your poor father. Go to school, get a job, get a college degree, save money, and invest in the long term of the stock market or get out of debt and pay your taxes.

10:39I don't do any of that stuff. So just hear me. If you're going to get rich, you've got to change the way you think. You've got to change the words in your head. Don't say go to school. what are you going to learn for a poor person like my poor dad you know get a job get a job you're going to pay taxes pay taxes you're going to pay taxes uh buy a house house is a liability that's what most bitcoiners do they they get this house they buy a they got this they make millions they buy this big freaking house they pay higher taxes that's really silly and then they buy a nice car now i'm not against i have big houses i have nice cars i have my jet if you're going to become rich you'd better start thinking like an investor because the moment you sell your bitcoin you have a taxable event the trouble with selling your bitcoin is you pay taxes the trouble with borrowing against your bitcoin when the price drops you have a margin call you gotta start thinking like an investor and that comes up to this book here called rich dad's cash flow quadrant so this is book number two this is your book right now okay so let me explain rich dad poor dad this is rich dad poor dad here this is what they don't teach you in school all this is is a financial statement so financial education in schools begins with a financial statements or financial literacy what's an income expense asset liability statement of cash flow that's all rich that poor dad is it's this here so when i talk to all you crypto guys here this is where you guys are at you're way down here there's businesses there's real estate there's stocks bonds mutual funds etfs and paper and there's commodities bitcoin i classify in the commodities of oil silver gold and bitcoin you're way down here this is the world of money so you made a lot of money here but like I said it's like peeing in the ocean there are so much opportunity out here but if you think like my poor dad what you're gonna think like is say that oh I have a high paying job or I have a lot of money I made money in Bitcoin what I want to do is I want to buy a Lamborghini or a house my poor dad his biggest asset was his house that's why he was poor because it's not a house it's not a house it's not an asset it's a liability so this is where financial literacy kicks in you must know the definition of words an asset puts money in your pocket so i own businesses and businesses put money in my pocket every month i own real estate every month they put money in my pocket i own a house and it takes money from my it takes my money from here out the expense column.

13:35So that's why the most important words are cash flow. So what real financial education is, is how do you control cash flow? The two most important words in financial literacy. This is a game for capitalists. If you're a communist, go to school, get a job, work for the government, work for the Fed. So anyway, you Bitcoin guys are kind of down here. I have gold, silver, and Bitcoin and Ethereum. And I have oil, I have food. This is how big the world of money is. The thing about my gold and silver is I pay zero for it. For my Bitcoin, zero for it. For Ethereum, zero for it. And the reason is my assets from here buy my Bitcoin, my gold, my silver, and all this stuff.

14:30So, if I'm twisting your heads around good, or I could tell you, go to school, get a job, pay your taxes, work hard, save money, and put your money in a 401k. That's what every loser does. Loser, loser, loser. Or they buy themselves a big house, and they call it an asset when it's really a liability, or a Ferrari, or a Lamborghini, or a Rolls Royce, and they call it an asset. It's a liability. That's why they're losers here. so the reason i created this board game with my wife and this cash flow thing book here is this is what we teach and the beauty bug game here the way i learned to be an investor was my rich dad taught me playing monopoly four green houses one red hotel four green houses one red hotel today i own 8 000 rental units i own businesses i own hotels but all i'm doing is focusing here.

15:26So when I left school, this is all I focus on here. How do I acquire assets? Most of you are thinking over here or over here. You've got to get your mind back into here. How do you convert Bitcoin into other assets is your job. Otherwise, you can just go buy a big house, a new Lamborghini. Big deal. You're poor.

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16:29Great coverage and durability starting at$29.98 per gallon. Enjoy everyday protection against scuffs and wear with a smooth, washable finish. We're made of colors. And with Valspar Ultra, you can reflect that pride of culture you have inside on every wall of your home. available at Lowe's. So let me review it really quickly. My wife and I built this cash flow game because I learned to get rich playing Monopoly. But what makes this game different than Monopoly is this here. This game teaches you how to use a financial statement. It teaches you how to move your money around, how to control your cash flow.

17:11That's what this game does. So in 1996, we created this book. This game, 1997, I wrote this book to sell this. And then I wrote the second book in the Rich Dad series, The Cash Flow Quadrant. And that's this book here. And this is what I'm talking to most of you about today, is most of you are here in mindset. You go to school to get a job. and what you're taught and what an employee will always say is, oh, I'm looking for a job security, I want a steady paycheck, and I want benefits. You're a loser then because you're going to pay taxes. And these guys here, the S's, they're the specialists like doctors, lawyers, or dentists, or they're small entrepreneurs.

18:00Guess who plays the highest taxes over here? These guys here. so when these these financial experts on youtube say start your own business i go oh god you gotta be a nut you start your own business you come here you walk into a 60 tax bracket here you cannot get ahead it's almost impossible to get out of here so they this is about this is worldwide there's not much difference it's worldwide so at 40 you quit your job you start your small business you got a little side hustle going you're now paying 60 percent in taxes if you have any profits you cannot get ahead so the reason i wrote this book so b stands for big business big business is 500 employees or more it also stands for brand rich dad is a brand the reason i make so much money is rich dad is a brand it is a worldwide brand and what I stands for is insider I only invest from the inside these guys invest from the outside these guys invest in stocks bonds mutual funds ETFs 401ks IRAs but if you want to go ahead but the reason we created the cash flow board game is to start thinking on this side here you got to reorient your brain to this side not this side and your mommy and daddy probably said stay over here it's my thing to do an insider means you have to be inside the deal I would never touch a 401k you know guys like Dave Ramsey's a friend of mine says live debt-free I would never let I would never live debt-free you said I borrow money over here which is debt and I buy real estate I buy houses I buy businesses but I use debt to get rich and Dave Ramsey says get out of debt and for most people Dave Ramsey is correct these guys should live debt-free and then Tony Robbins was also a friend of mine he tells you to buy ETFs oh my god you know that's called passive investors I wouldn't touch this stuff but if you like Tony Robbins buy ETFs have an IRA and a 401k I don't touch that stuff and the reason for that is in this book I wrote here it's who stole my pension in the next few years if you already don't know about it those guys with ETFs and stocks and bonds they're gonna find out their pensions have been looted they've been stolen what I was when I was just coming out of the Marine Corps was getting into the Marine Corps 1974 they started selling guys my age in our 20s that we should have a 401k the reason they wanted my generation about the baby boomers of a 401k is because most americans wouldn't touch stocks because everybody knew stocks were risky most americans back in the 70s when i was growing up were in bonds and they couldn't get people into stocks so they invented this thing called the 401k when I was work I was just just growing up and everybody said you only have a 401k you know 401k and because I had a rich dad I knew I was being set up I don't have a 401k our company doesn't issue a 401ks and they're good for the average person but what you're gonna find out within the next five to ten years there's nothing in them they've been looted and who looted it the fed and that's why i know that's why i support bitcoin and all that because they're outside the financial system of the fed the treasury and wall street you like the fed treasury wall street stay on this side here but i think the reason you guys are in bitcoin is because you don't trust the US government which is my way of saying the advantage the younger generation has over the older generation is you guys are more aware than the baby boomers you guys know you're being screwed this is not news to you guys the baby boomers are still over here thinking their 401k and IRAs are safe when they have no idea that this has been going on the whole time by Wall Street the Fed the Fed and the US Treasury.

22:34So that's why I write, I speak, and I do what I do. If you're going to be rich, you've got to get out of this thinking here, job security, oh, I have a little Bitcoin business, I have a pizza shop and all this. You're not going to make it with that mindset. You're not. It's on this side. And that's why the Rich Dad Company was formed to teach people on this side here. So a little while I'll go into what this side is. It's very different on this side. B stands for brand. Rich Dad is a brand. It's worth millions. So what is my net worth? It's not Bitcoin. It's what is the brand Rich Dad worth in the world marketplace.

23:19All my books and things are sold throughout the world. Our games are sold throughout the world. Rich Dad is a brand. If you ask Warren buffett what he invests in warren buffett only invests in brands when he invested in gold for a short time he invested in barrack and newmont gold he invested in brands nobody's going to invest in here because you're too small so your job is to open up your mind ask yourself how do i get onto this side here so let me give you the tax consequences these guys throughout the world pay 40 percent these guys 60 these guys 20 these guys zero because we're smart we have financial education if you're paying taxes you're not that smart every time you sell bitcoin you're going into a capital gains tax i wouldn't ever do that but by having financial education i can make money and not pay taxes but that's the difference between this side and this side now the bad news is you're going to have to take care of these guys that's the problem please start thinking over here just because you have just because you have 100 million in bitcoin doesn't mean you're rich you have 100 million bitcoin there's so much money to be made but you have to shift your thinking over to this side so let me go back again about investing first book was rich dad poor dad it's this here you have to know the difference between income stations balance sheets statements of cash flow.

24:50That's very fundamentally educational. Next is cash flow quadrant, E, S, B, and the I. And most of you are raised by your mothers and daddies who are E's and S's. Or you go to school and you're taught by E's and S's. This is my poor dad's side. This was my rich dad's side. It's not easy. Most of you can't do it. But if you're smart enough and you're determined enough, you can get there especially if you've made a lot of money in bitcoin you can convert it onto this side hopefully and once again this is not 401k etf save money bonds or stocks this is an inside deal i only do inside deals i structure deals i put deals together taking three companies public i don't touch that garbage called stocks bonds mutual funds etfs most people should and again dave ramsey always says live debt free and for most people they should but the reason i don't need bitcoin or gold or silver is because i understand monetary policy and in 1971 the u.s dollar became debt so i simply borrow money to buy real estate the government and the fed will give me as much money as i want to buy real estate which pumps a lot of money into my pocket here i pay no taxes because the money is debt i want you to understand that it's debt so i pay no taxes the money comes up here reason it's tax-free is because government likes real estate the tax law lets me depreciate the property, the money comes in here for free.

26:33So I'm buying my gold, serving Bitcoin for free. That's what real investors do.

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28:15So that's on this side here. But this here is the BI triangle. It's made out of eight pieces. First is the mission, team, leadership, product, legal, systems, communication, cash flow. When I structured my gold mine deal, boom, boom, boom, boom, boom. I just did a great new deal. Again, it was mission, team, leadership, product, legal, systems. I don't touch stocks, bonds, mutual funds, ETFs. Maybe you guys should, but I won't touch them. I don't have to. So on this side here, this is product. So if you're looking at this here, this is a product. I spent most of my life building products. If you had Rich Dad Pornet, my first product was nylon wallets.

29:06I made surfer wallets. I went to rock bands. I made hats and all this. I was designing products. You've got to have it legal. It's going to be patented or protected. Then we have to have the systems of sale. For example, I just looked at a water deal the other day. So I understood the product. I understood the legal and the water deal. It was bottled water. But their systems sucked. They had no distribution throughout the world. And systems are very, very expensive. So I backed out of the water deal because their systems were no good. Their communication sucks. They didn't have any sales or marketing.

29:40One of the beauty of YouTube and this medium, social media, is communications is really cheap. When I was starting out with the nylon wallet business, I had to fly from Hawaii to New York to go onto a radio station to try and hopefully get the promo up my little wallets or i had to buy advertising space and magazines stuff like this and surfer magazines running magazines and this is where cash flow i want you to notice really quickly here the better your communications the better your cash flow so when i meet people who have no income it's because our communications suck. So that's a way of saying, let me say it again, if you can't sell, you have no income.

30:24So the reason so many people, my school teachers or people in the Fed, I think the Fed has 780 PhDs. They're all like my poor dad. That's why the Fed is broke. They're all poor people who have no idea how to make money. So when I got out of the Marine Corps, I flew for six years. My first job was to learn how to sell. That's how I went to work for Xerox, so I could learn to sell. I stayed in Xerox for four years until I became number one in sales. My best friend became number one in Xerox for another division. He and I started off as salesmen. When I was in the papers years and years ago, the New York Times said, oh, what does Kiyosaki know?

31:05He's just a salesman. And what happens is the academics, guys like my poor dad, they think salesmen suck because they're academics, they're academic elites. Look, if you can't sell, you're not gonna be rich. So I'll say it again, every time I meet a company that's going broke, either their product sucks, they don't have legal protection on it, their systems aren't in place, and they can't sell, and then they have no money. So let me say it another way, this here is what we're taught in military school first word I learned I went to school in New York the US Merchant Marine Academy first word we were taught was mission what is the mission what is the mission when I joined the Marine Corps what is the mission who is your team who is your leader so again let me explain why I can talk to young guys here is I studied this book here the grunge of Giants gross universal cash heist how the Fed rips us off the creature from jackal allen how the fed was created in 1913 and then this book here critical path by buckminster fuller the way the current monetary system works here is this the only way money can be created this is after 1971 money has to be borrowed let me say it again the current system of money from the fed and the treasury the only way money comes into existence existence is you have to borrow money the fed prints all this money just print print print the only people that get the money are people like me people on the b in the i side who can borrow millions of dollars so that when dave ramsey says live debt free that's good advice for these guys here but on this side the fed loves us the federal the system of money today needs the banking system to give money to me and give credit cards and student loans to these guys here.

33:08The system is broken. It's maxed out. Our debt to GDP is too high. In 1980, the United States was 30 % debt to GDP. Today, it's 130 % debt to GDP. America is bankrupt. We're bankrupt. So that's why gold, silver, Bitcoin, in my opinion, are the future. The most important piece of real estate between this year and this year, and that's why the Rich Dad Company was created. I want to teach you to be on this side, not this side. You want to be on this side, do what your mommy and daddy told you to do. Go to school, get a job, work hard, save money, get out of debt, and die. Thank you very much.

33:55This podcast is a presentation of Rich Dad Media Network. Thank you.