Rich dad Poor dad author Robert Kiyosaki usually recommends investing in rock-solid assets. Her favorite ideas include precious metalsreal estate, or running your own business.
With Kiyosaki's focus on value-oriented assets and income-producing investments in mind, his recent projections for the Bitcoin(CRYPTO: BTC) cryptocurrency. Two weeks ago, Kiyosaki pinned a $350,000 price target on Bitcoin for 2025. He doubled down on that prediction this Thursday, targeting this year's price at a range of $175,000 to $350,000 per coin.
Bitcoin gained 119% in 2024, rising from $42,221 to $92,627 per coin. Kiyosaki's projections work out to a 2025 price increase of at least 89% and as much as 278%.
Do these ambitious price targets make sense? Let's have 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 so-called halvings change Bitcoin's economic model, as the fixed costs of Bitcoin mining remain unchanged while the resulting inflow of new Bitcoins slows down.
Without sudden price increases over time, crypto miners would eventually be unable to pay their bills, and the blockchain network would grind to a halt. The mining process plays an important role in validating and publishing Bitcoin transactions. So Bitcoin tends to soar after each halving, usually after a delay of 9 to 12 months.
The continued price gains appear to be in line with the time frame of the first three halves, and most of this cycle's gains are likely lurking just around the corner.
Regulators approved 11 exchange-traded funds (ETFs) that track the real-time price of Bitcoin in January 2024. The spot entry of Bitcoin ETFs gave large groups of investors easy 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 the iShares Bitcoin Trust(NASDAQ: IBIT) or ARK 21Shares Bitcoin ETF(NYSEMCT: ARKB).
These funds manage actual Bitcoin portfolios, usually with the help of the Coinbase(NASDAQ: COIN) A premier crypto-asset custody service. Buying shares of these ETFs is essentially the same as buying a small piece of Bitcoin. For example, the ARK 21Shares Bitcoin ETF closed Thursday's trading at $97.27 per share, while the iShares alternative landed at $55.37.
If you know how to buy a stock, you know how to buy a Bitcoin ETF right there. These shares are available in retirement accounts, or can be part of an institutional investor's huge portfolio, etc. The ETFs make Bitcoin easier to own in several ways.
Unlocking Bitcoin investments for banks, capital management funds, and financial advisors could have game-changing effects on Bitcoin. If these financial powerhouses want to incorporate digital assets into their standard portfolios, you will see a massive influx of old-school capital into the crypto market.
The world's top 500 money managers ended 2023 with $128 trillion under management, according to WTW. That ocean of invested capital is likely to have grown even higher in 2024, based on the S&P 500(SNPINDEX: ^GSPC) index gaining 23% last year. The total market value of Bitcoin is worth about 1% of the combined institutional investor accounts. They could very quickly change the Bitcoin supply-and-demand equation by allocating a small portion of their assets to this market.
Kiyosaki's bullish price target is part of another potentially game-changing catalyst: Rising public interest.
There are about 106 million Bitcoin accounts on the planet today – a fraction of 8 billion people and hundreds of millions of companies. Most of these accounts are quite small, and Bitcoin users do not do much with their accounts. About 400,000 Bitcoin transactions were processed on an average day in December 2024. That's not a lot of real world usage.
Now imagine a world where Bitcoin (and other cryptocurrencies) are commonly used by ordinary people, at least for buying large tokens. With a very limited supply and increasing usage day by day, the price of Bitcoin should soar in that possible future. Discussing the digital currency in widely seen media channels — such as Kiyosaki's social media accounts — should increase public interest in this new digital currency.
Bitcoin will not replace the dollar overnight, and may never be. But it could someday serve similar purposes, for more than just a handful of early adopters.
I don't know how deeply Robert Kiyosaki has analyzed Bitcoin and its future, and his near-term price targets range from “relatively very” to “kind of extreme.” Feel free to take them with a generous pinch of salt.
Still, I can't get over the fact that people like Kiyosaki are taking a serious interest in Bitcoin. This digital asset is starting to look like a normal part of any investor's financial toolbox, next to classics like stocks, gold, and real estate.
With or without Robert Kiyosaki's involvement, this may be the start of a new era in personal finance and wealth management—and his involvement certainly won't hurt Bitcoin's cause. It is similar good idea to get some Bitcoin exposure in your portfolio these days, as the catalysts I highlighted continue to be in place.
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Anders Bylund He has positions at Bitcoin and Coinbase Global. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy.
