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Sunday, 13/7/2025 | 10:20 GMT+7

Two laws explain why you're still poor

Robert Kiyosaki, author of "Rich Dad Poor Dad", argues that the root of poverty lies in many people violating two key laws of money.

According to Robert Kiyosaki, these are two laws not to break if you want to be rich.

Gresham's law

Gresham's law is an economic principle stating that "bad money drives good money out of circulation", or as Kiyosaki explains, "When bad money appears in the system, good money withdraws and hides".

In the currency market, this means that money overvalued above its real worth (bad money) will circulate widely, while money with high intrinsic value (good money) will gradually disappear, as people hold onto it rather than spending it.

In Kiyosaki's view, people should focus on owning real assets like precious metals and cryptocurrency, instead of just holding cash.

"In 'Rich Dad Poor Dad', I wrote: 'Savers are losers'", he posted on X. "In 2025, poor people are working for and saving 'fake' money, not valuable money like gold or Bitcoin".

Metcalfe's law

Metcalfe's law states: "The value of a network is proportional to the square of the number of connected users of the system. The more participants, the stronger and more valuable the network".

Robert Kiyosaki uses this principle to explain the difference between thinking big and thinking small in business. "McDonald’s is a network, a franchise. Your mom and pop’s burger shop is not. This is why they are poor", he writes.

Based on network thinking, Kiyosaki chooses to invest in cryptocurrencies with strong ecosystems. "I invest in Bitcoin because it is a network. Most other coins are not", he says.

Kiyosaki believes that to become rich, one needs to understand and follow these two core economic laws. "I do not save dollars because it violates Gresham’s law: bad money drives out good money. I also do not invest in coins that are not networks, violating Metcalfe’s law", he states. "That is why I stack gold and Bitcoin".

However, according to Kiyosaki, the fundamental reason why many people remain poor is not a lack of opportunity, but rather their FOMM (Fear of Making Mistakes). "This fear prevents many people from taking action, even in the face of the biggest wealth creation opportunity in history", he warns.

FOMM is even more dangerous than FOMO (Fear of Missing Out). FOMO makes people rush to buy when prices rise. But FOMM makes them hesitate to the point of missing out on opportunities altogether.

He advises people not to listen to just one side, but to equip themselves with financial knowledge. Learn from both supporters and opponents of cryptocurrency. Traditional education does not teach financial intelligence. Schools only encourage risk avoidance and fear of failure, while successful people are those who know how to learn from mistakes and act at the right time.

Bao Nhien (Yahoo)

By VnExpress: https://vnexpress.net/hai-quy-luat-ly-giai-vi-sao-ban-van-ngheo-4912397.html
Tags: finance Robert Kiyosaki poor

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