Rich dad, poor dad author Robert Kiyosaki usually recommends investing in rock solid assets. His favorite ideas include precious metalsreal estate or running your own business.
Given Kiyosaki’s focus on value-oriented assets and income-generating investments, I was intrigued by his recent projections for Bitcoin(CRYPTO: BTC) cryptocurrency. Two weeks ago, Kiyosaki set a Bitcoin price target of $350,000 for 2025. He doubled that prediction this Thursday, targeting this year’s price in the 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 projections point to a 2025 price increase of at least 89% and as much as 278%.
Do these ambitious price targets make sense? Let’s take a look.
Bitcoin currently has several price catalysts in the air.
The digital currency halved the rewards for mining new coins last April. These so-called halvings change the economic model of Bitcoin, as the fixed costs of mining Bitcoins remain unchanged, while the resulting inflow of new Bitcoins slows down.
Without a spike in prices 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 go up after each halving, usually after a 9 to 12 month delay.
The ongoing price rally seems to fit the schedule of the first three halvings, with most of the increases in this cycle likely lurking around the corner.
Regulators have approved 11 exchange-traded funds (ETFs) that track the price of Bitcoin in real time in January 2024. The entry of spot Bitcoin ETFs has given large groups of investors easy access to Bitcoin.
Instead of opening an account with a cryptocurrency brokerage and learning a whole new system for investing in the world of digital assets, anyone with a brokerage account can access names like iShares Bitcoin Trust(NASDAQ: IBIT) or ARK 21Shares Bitcoin ETF(NYSEMKT: ARKB).
These funds manage an actual bitcoin portfolio, usually with assistance Coinbase(NASDAQ: COIN) The premier crypto asset custody service. Buying shares of these ETFs is for all intents and purposes the same thing as buying a small piece of Bitcoin. For example, the ARK 21Shares Bitcoin ETF closed trading Thursday at $97.27 a share, while the iShares alternative hit $55.37.
If you know how to buy a stock, you know how to buy a spot Bitcoin ETF. These stocks are available in retirement accounts or can be part of an institutional investor’s huge portfolio and so on. ETFs make owning Bitcoin easy in many ways.
Unlocking Bitcoin investment for banks, wealth management funds, and financial advisors could be a Bitcoin game changer. If these financial powerhouses want to include digital assets in their standard portfolios, you will see a huge 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 grow even more in 2024, based on S&P 500(SNPINDEX: ^GSPC) index increased by 23% last year. The total market value of Bitcoin is worth about 1% of the combined accounts of institutional investors. They could very quickly change the Bitcoin supply and demand equation by allocating a small portion of their assets to this market.
Kiyosaki’s price target increase is part of another potentially game-changing catalyst: growing public interest.
There are about 106 million Bitcoin accounts on the planet today — a tiny fraction of the 8 billion people and several hundred million 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 average per 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 large purchases. With a strictly limited supply and growing daily usage, the price of Bitcoin should rise in that potential future. Discussion of cryptocurrency on widely seen media channels — such as Kiyosaki’s social media accounts — should increase public interest in this fledgling digital currency.
Bitcoin will not replace the dollar overnight, and it may not. But one day it may serve similar purposes, for more than just a few early adopters.
I don’t know how deeply Robert Kiyosaki has analyzed Bitcoin and its future, and his short-term price targets range from “very bullish” 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 seriously interested in Bitcoin. These digital assets are starting to look like a normal part of every investor’s financial toolbox, right alongside classics like stocks, gold and real estate.
With or without Robert Kiyosaki’s involvement, this could be the start of a new era in personal finance and wealth management—and his involvement certainly won’t hurt bitcoin. It probably is good idea to have some exposure to Bitcoin in your portfolio these days, while the catalysts I’ve highlighted continue to work.
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Anders Bylund has positions in Bitcoin and Coinbase Global. The Motley Fool has positions and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy.
