Rich dad and poor dad Author Robert Kiyosaki usually recommends investing in hard assets. Include his favorite ideas Precious metalsOr real estate or running your own business.
With Kiyosaki’s focus on value-oriented assets and income-generating investments, I am intrigued by his latest forecasts on the global economy. Bitcoin(Crypto: Bitcoin) Cryptocurrency. Two weeks ago, Kiyosaki set a $350,000 price target for Bitcoin for 2025. He doubled that prediction on Thursday, targeting this year’s price in a range of $175,000 to $350,000 per coin.
Bitcoin rose 119% in 2024, rising from $42,221 to $92,627 per coin. Kiyosaki’s forecasts indicate a price increase of at least 89% in 2025 and up to 278%.
Do these ambitious price targets make sense? Let’s take a look.
Bitcoin has several price catalysts in the air right now.
The digital currency halved the rewards for mining new coins last April. These halvings change the economic model of Bitcoin, as the fixed costs of Bitcoin mining remain unchanged while the resulting flow of new Bitcoins slows.
Without sharp price increases over time, cryptocurrency miners will eventually be unable to pay their bills, and the blockchain network will stop working. The mining process plays an important role in validating and publishing Bitcoin transactions. So Bitcoin tends to rise after each halving, usually after a delay of 9 to 12 months.
Continued price gains appear to fit the timeline for the first three halves, and most of the increases in this cycle are likely just around the corner.
Regulators approved 11 exchange-traded funds (ETFs) to track the price of Bitcoin in real-time in January 2024. The entry of spot Bitcoin ETFs has given large groups of investors easier access to Bitcoin.
Instead of opening accounts with a cryptocurrency brokerage and learning a whole new system for investing in the world of digital assets, anyone with a stock brokerage account can access names like iShares Bitcoin Trust(NASDAQ:EBIT) or ARK 21Shares Bitcoin ETF(NYSEMCT:ARKB).
These funds manage actual Bitcoin wallets, usually with assistance Coinbase(NASDAQ: Currency) The main crypto asset custody service. Buying shares of these ETFs is for all intents and purposes the same as buying a small slice of Bitcoin. For example, the ARK 21Shares Bitcoin ETF closed trading Thursday at $97.27 per share, while the iShares alternative fell at $55.37.
If you know how to buy stocks, you know how to buy spot Bitcoin ETF. These stocks are available in retirement accounts, or could be part of an institutional investor’s massive portfolio, etc. ETFs make it easier to own Bitcoin in several ways.
Opening up Bitcoin investments to banks, capital management funds and financial advisors could be a game-changer for Bitcoin. If these financial powers want to integrate digital assets into their standard wallets, they will see a massive influx of legacy capital into the cryptocurrency market.
The world’s 500 largest money managers finished 2023 with $128 trillion under management, according to… WTW. This pool of invested capital will likely rise to a higher level in 2024, depending on… Standard & Poor’s 500(SNPINDEX: ^GSPC) The index rose 23% last year. Bitcoin’s total market capitalization is about 1% of the combined accounts of institutional investors. They can change the Bitcoin supply and demand equation very quickly by allocating a small portion of their assets to this market.
Kiyosaki’s upside price target is part of another potentially game-changing catalyst: increased public interest.
There are about 106 million Bitcoin accounts on the planet at present – a small fraction of 8 billion people and several hundred million businesses. Most of these accounts are very small, and Bitcoin users don’t do much with their accounts. An average of about 400,000 Bitcoin transactions were processed per day in December 2024. This does not represent a huge amount of real-world usage.
Now imagine a world where Bitcoin (and other cryptocurrencies) are commonly used by ordinary people, at least for expensive purchases. With very limited supply and increasing daily use, the price of Bitcoin should rise in this potential future. Discussion of cryptocurrency in widely viewed media channels – such as Kiyosaki’s social media accounts – should increase public interest in this new digital currency.
Bitcoin won’t replace the dollar overnight, and it probably never will. But they may serve similar purposes one day, for more than just a handful of early adopters.
I don’t know how deeply Robert Kiyosaki analyzes Bitcoin and its future, and his near-term price targets range from “very bullish” to “kind of extreme.” Feel free to eat it with a pinch of salt.
However, I can’t get over the fact that people like Kiyosaki are seriously interested in Bitcoin. These digital assets are starting to look like a natural part of any investor’s financial tools, alongside digital assets such as stocks, gold, and real estate.
With or without Robert Kiyosaki’s involvement, this could be the beginning of a new era in personal finance and wealth management – and his involvement certainly wouldn’t hurt the Bitcoin cause at all. Maybe this is the case It’s a good idea to have some exposure to Bitcoin In your portfolio these days, as the catalysts I highlighted continue to surface.
Before you buy shares with Bitcoin, keep in mind the following:
the Motley Fool stock advisor The analyst team has just defined what they think it is Top 10 stocks Investors buy it now… and Bitcoin wasn’t one of them. The 10 stocks that were discounted could deliver huge returns in the coming years.
Think when Nvidia I prepared this list on April 15, 2005… If you invested $1,000 at the time of our recommendation, You will have $885,388!*
Stock advisor It provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. theStock advisorThe service has More than four times The return of the S&P 500 since 2002*.
Anders Billund He has positions in Bitcoin and Coinbase Global. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has Disclosure policy.
