Robert Kiyosaki claims the poor stay poor for ignoring 2 crucial money laws — here's what he says you must follow

Time of India

2 days ago

Robert Kiyosaki, author of the best-selling personal finance book '
Rich Dad Poor Dad
', has spent decades exploring what separates the rich from the poor, and now in a recent post on social media platfom X (formerly Twitter), Kiyosaki revealed that people remain poor because they ignore two fundamental 'laws of money,' as per a GoBankingRates report.
As he explained, here are the two laws of money that one shouldn't break if they want to be rich, according to the report.
Bad Money Drives Out Good Money
Gresham's Law is the first important law, an economic theory which says, 'bad money drives out good money,' as per GoBankingRates. Kiyosaki has explained it as 'When bad money enters a system….good money goes into hiding,' as quoted in the report.
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With reference to the currency markets, the law means that legally overvalued currency will drive legally undervalued currency out of circulation and according to Kiyosaki's interpretation, people should focus more on obtaining assets like precious metals and cryptocurrency instead of stockpiling cash, reported GoBankingRates.
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Kiyosaki wrote in his X post that, 'In 'Rich Dad Poor Dad' I stated, 'Savers are losers', in 2025, poor people are working for and saving fake money and not saving real money … gold, silver, bitcoin,' as quoted in the report.
The Power of Networks
The second law Kiyosaki cites is Metcalfe's Law, which says, 'the value of a network grows as the square of the number of its users,' quoted GoBankingRates.
Kiyosaki explained by giving this example on X, 'McDonald's is a franchise network. Mom Pop burgers is not. That's why they're poor. FedEx is a network. Joe's one truck package delivery is not,' as quoted in the report.
He applies the same logic while investing in cryptocurrencies, as, according to him, the cryptocurrencies that have a larger network behind them are also the most valuable, reported GoBankingRates.
The author said, 'I invest in bitcoin because [it] is a network,' adding, 'Most cryptos are not,' as quoted in the report.
Why These Laws Are Important To Get Rich
Kiyosaki says these two laws guide how he manages his own money. He wrote on X, 'If you want to be rich, obey the laws,' adding, 'Michael Saylor's rich man's words of wisdom are: 'Only invest in things … a rich person will buy from you.' Think about that," as quoted by GoBankingRates.
He also revealed that 'I do not save U.S. dollars because the U.S. dollar violates Gresham's Law,' as quoted in the report. Kiyosaki pointed out that, 'I do not invest in … coins without networks, because they violate [Metcalfe's] Law. That's why I save gold, silver and acquire bitcoin. They obey the laws,' quoted GoBankingRates.
FAQs
Why does Kiyosaki invest in bitcoin over other cryptos?
Because Bitcoin has a large, established network behind it, and most other cryptocurrencies don't follow Metcalfe's Law.
What's the biggest money mistake people make, according to Kiyosaki?
Ignoring the two laws of money, which is not understanding Gresham's Law and Metcalfe's Law.