The past week has delivered one of the most dramatic turns in the cryptocurrency market, with Bitcoin erasing nearly $400 billion in value in just seven days. What appeared to be a stable climb toward new record highs suddenly shifted into a sharp reversal, leaving traders confused and long-term investors questioning their next move. The abrupt downturn sent fear across digital asset markets, yet it also ignited a new wave of commentary from financial personalities known for their bold opinions.
Among the loudest voices was Robert Kiyosaki, the bestselling author of Rich Dad Poor Dad. Kiyosaki responded to the plunge by doubling down on his belief in Bitcoin’s future and using the moment to publicly criticize Warren Buffett, the legendary value investor who has repeatedly called Bitcoin “rat poison squared” and dismissed cryptocurrencies as pure speculation. Kiyosaki argues that Buffett simply does not understand what he calls “people’s money,” while Buffett maintains that crypto has no intrinsic value and will one day collapse.
This fierce clash arrives precisely when investors need clarity the most. With Bitcoin spiraling downward and the broader crypto market losing hundreds of billions in value, the central question has become unavoidable: Is this the time to buy the dip, or is it time to get out? To answer that, we must examine the market’s violent swing, the motives behind Buffett’s skepticism and Kiyosaki’s confidence, and the deeper forces driving the latest crypto wipeout.
Robert Kiyosaki vs Warren Buffett: A Battle of Opposite Philosophies
When examining why Robert Kiyosaki slams Buffett’s take on crypto, it becomes clear that the two men live in entirely different financial worlds. Buffett views the market through the lens of intrinsic value, predictable cash flows, and measurable fundamentals. To him, an investment must produce something: earnings, dividends, or tangible utility. Bitcoin does none of that. It is not a business, and it does not generate income. For Buffett, that makes it speculation rather than investment.
Kiyosaki, on the other hand, is driven by a worldview built on distrust of central banks, currency debasement, and the fragility of the traditional financial system. He believes that real wealth is found in scarce, decentralized assets such as gold, silver, and Bitcoin. In his view, fiat currencies are “fake money,” capable of being printed at will, while Bitcoin is mathematically limited, resistant to censorship, and controlled by no government.
This philosophical conflict explains why Buffett sees a crash as validation of his warnings, while Kiyosaki sees it as a chance to accumulate more of what he considers real wealth. To Buffett, volatility signals danger. To Kiyosaki, volatility is simply part of the journey toward long-term gains.
How Bitcoin Wiped Out $400B
The staggering $400 billion market wipeout is not the result of a single catalyst, but rather a culmination of several forces converging at once. Bitcoin had been climbing aggressively for weeks, propelled by strong inflows from new spot Bitcoin ETFs, growing institutional interest, and an optimistic narrative that the cryptocurrency was entering a new era of mainstream acceptance. Many traders were convinced that prices would continue rising toward new records.
But as often happens in markets driven by momentum, the climb invited heavy leverage. Traders took on oversized positions, betting that Bitcoin would keep pushing higher. When sentiment shifted and prices dipped even slightly, those leveraged bets began to crumble. Large positions were forcibly liquidated by exchanges, which accelerated the sell-off and triggered more liquidations. What began as a small correction soon turned into a cascading decline.
At the same time, macroeconomic uncertainty intensified. Concerns over inflation, interest rates, and global instability pushed many investors toward safer assets. Bitcoin, despite growing institutional recognition, is still categorized as high-risk and therefore vulnerable during broader risk-off environments. As major investors took profits or reduced exposure, the selling pressure compounded. In just one week, fear replaced euphoria, and the crypto market found itself in a downward spiral that erased nearly half a trillion dollars.
Why Kiyosaki Calls This a Buying Opportunity
Despite the carnage, Kiyosaki did not flinch. He immediately reiterated his belief that Bitcoin remains superior to fiat money, even during severe downturns. To him, the crash is an expected part of a long-term cycle, not a collapse. He emphasized that crashes reveal who understands the market and who simply chases momentum. In his words, prices go up and down, but value comes from scarcity and independence from government systems.
Kiyosaki maintains that Bitcoin is the “people’s money,” while traditional stocks and bonds are dependent on the decisions of institutions such as the Federal Reserve and the Treasury. He argues that governments cannot print more Bitcoin the way they print dollars, and that this fundamental scarcity is precisely why Bitcoin will continue rising in the long term. For that reason, he openly stated that he is buying more Bitcoin while prices are lower. To Kiyosaki, downturns are temporary, but the asset remains a long-term hedge against the erosion of purchasing power.
Why Buffett Believes Buying the Dip Is a Mistake
Buffett’s perspective is based on a different foundation. He believes an investment should be valued based on what it produces. Since Bitcoin does not produce earnings, profits, or dividends, there is no objective way to determine a fair value. Its price is based entirely on what someone else is willing to pay. In Buffett’s mind, this makes it fundamentally unreliable.
To him, the fact that Bitcoin can lose hundreds of billions in value in a week is not a sign of opportunity, but a sign of inherent fragility. He compares crypto crashes to bubbles in history, where enthusiasm drives prices up, only for reality to bring them sharply back down. Buffett argues that “buying the dip” in a volatile, non-productive asset is not investing, but gambling. This divide between Buffett and Kiyosaki is not simply a disagreement about Bitcoin. It is a dispute about what constitutes real value and where the future of money is heading.
Understanding the Crash: The Macro Story Behind the Selloff
To determine whether this is a moment to buy or bail, it is important to understand the macro backdrop surrounding the crash. The global economy is navigating a period of uncertainty. Inflation pressures remain elevated, central banks are sending mixed signals on interest rate cuts, and geopolitical tensions are affecting markets across the board. In such climates, speculative assets often suffer first.
As investors sought safety, money flowed out of risk-on sectors, including cryptocurrencies. At the same time, Bitcoin ETFs showed signs of cooling, with outflows replacing the heavy inflows seen in previous weeks. These outflows meant real Bitcoin had to be sold, adding mechanical downward pressure.
Meanwhile, overleveraged traders faced forced liquidations, turning decline into freefall. Confidence wavered, and fear spread quickly. The result was the massive market wipeout that startled investors around the world.
Should Investors Buy Now or Bail Out?
This is the question on everyone’s mind, but the answer depends less on predictions and more on personal strategy. For investors who believe in Bitcoin’s long-term thesis — limited supply, growing adoption, and resistance to inflation — downturns like this may feel like strategic entry points. They align with Kiyosaki’s outlook that temporary volatility does not change long-term fundamentals.
For investors who require stability and predictable returns, the crash serves as a warning signal. Volatility of this magnitude is not compatible with a conservative, Buffett-style approach. In that sense, staying out of the market entirely may be preferable to attempting to time a rebound.
There is also a middle ground. Some investors maintain small, diversified positions in crypto as a speculative portion of a broader portfolio. They understand the risks yet see value in holding a limited amount over the long run. For such investors, downturns can be used for careful accumulation rather than panic selling or reckless buying. Ultimately, whether to buy or bail depends on your risk tolerance, time horizon, and belief in crypto’s future. No single answer fits everyone.
The Kiyosaki-Buffett Clash Reflects a Bigger Question: What Is Money?
The public disagreement between Robert Kiyosaki and Warren Buffett symbolizes a deeper debate about what money truly is — and what it will become. Buffett represents faith in the traditional system: corporate earnings, government-backed currencies, and steady long-term growth. Kiyosaki represents a growing movement that sees Bitcoin, gold, and decentralized assets as the future of wealth preservation. When Bitcoin crashes, Buffett’s warnings gain credibility. When governments increase debt or devalue currency, Kiyosaki’s warnings gain credibility. This dynamic ensures that the debate is unlikely to end soon.
Conclusion
The headline captures the tension perfectly: “Robert Kiyosaki slams Buffett’s take on crypto even as Bitcoin wipes out $400B in one week. Is it time to buy or bail?” All the ingredients of a market storm are present — massive volatility, high-profile opinions, macroeconomic uncertainty, and millions of anxious investors searching for direction.
Whether this moment represents opportunity or danger depends entirely on your framework. Kiyosaki sees long-term value in scarce, decentralized assets and views crashes as discounted buying opportunities. Buffett sees crypto as speculative and believes downturns are reminders that Bitcoin has no intrinsic value.
Both perspectives have merit, depending on your goals. What matters most is understanding your risk tolerance and deciding whether you align more closely with Buffett’s emphasis on stability or Kiyosaki’s belief in hard-asset resilience. The crypto market will continue evolving, but your strategy must remain grounded in your own financial reality.
FAQs
Q: Why does Robert Kiyosaki criticize Warren Buffett’s view on crypto?
Because Kiyosaki believes Bitcoin and Ethereum are superior forms of money, while Buffett considers them speculative and lacking intrinsic value. Their disagreement reflects two different philosophies on what money should be.
Q: How much did Bitcoin lose during the recent crash?
Bitcoin’s sharp decline erased nearly $400 billion in global crypto market capitalization in just one week, marking one of the most significant downturns of the year.
Q: Does Kiyosaki still support Bitcoin after the wipeout?
Yes. He maintains that downturns are buying opportunities and continues to argue that Bitcoin is “people’s money” with long-term potential.
Q: What does Buffett believe about Bitcoin?
Buffett has repeatedly stated that Bitcoin produces nothing, has no intrinsic value, and will likely come to a bad ending. He chooses not to invest in it.
Q: Should I buy Bitcoin during this dip?
The answer depends on your risk tolerance and investment philosophy. If you accept volatility and believe in crypto’s long-term future, you might consider it. If you prefer stable, cash-generating investments, it may be wiser to avoid crypto entirely.
Also Read: American Bitcoin Targets 50 EH/s Capacity
