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-based assets and income-generating investments, I’m interested in his latest predictions. Bitcoin:(CRYPTO: BTC) cryptocurrency.Two weeks ago, Kiyosaki set a $350,000 price target for Bitcoin in 2025. He doubled that forecast this Thursday, aiming for a price of $175,000 per coin this year.
Bitcoin gained 119% from $42,221 to $92,627 per coin in 2024. Kiyosaki’s predictions are for a 2025 price increase of at least 89% 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.
Last April, the digital currency halved the rewards for mining new coins.These so-called halvings change the economic model of Bitcoin, as the fixed costs of mining Bitcoin remain unchanged, while the inflow of new Bitcoins slows down as a result.
Without a dramatic increase in price over time, crypto miners will eventually be unable to pay their bills and the blockchain network will grind to a halt.The mining process plays an important role in validating and publishing Bitcoin transactions. after a delay of 12 months.
Continued price increases appear to be on schedule for the first three quarters, with most of this cycle’s hikes likely lurking around the corner.
Regulators have approved 11 exchange-traded funds (ETFs) that track the real-time price of Bitcoin in January 2024. The introduction of Spot Bitcoin ETFs has given large groups of investors easy access to Bitcoin.
Instead of opening accounts with a cryptocurrency brokerage and learning a whole new system of investing in the world of digital assets, anyone with a brokerage account can access names like: iShares Bitcoin Trust(NASDAQ: IBIT) or ARK 21 holds equity stakes in a Bitcoin ETF(NYSEMCT: ARKB).
These funds manage actual bitcoin portfolios, usually with the help of Coinbase:(NASDAQ: COIN) Prime Crypto Asset Custody Service Buying shares in these ETFs is for all intents and purposes the same as buying a small portion of Bitcoin.For example, the ARK 21Shares Bitcoin ETF closed trading at $97.27 per share on Thursday, while the iShares It was $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 they can be part of an institutional investor’s bulk portfolio, etc. ETFs make it easier in many ways Mastering Bitcoin.
Opening up bitcoin investment to banks, wealth management funds and financial advisors could be a game changer for bitcoin. If these financial powerhouses want to include digital assets in their standard portfolios, you’ll 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. WTW. That ocean of invested capital probably went even higher in 2024 based on that S&P 500:(SNPINDEX: ^GSPC) the indicator increased by 23% last year. The total market value of Bitcoin is about 1% of the accounts of institutional investors combined.
Kiyosaki’s rising price target is part of another potential game-changing catalyst: growing public interest.
There are about 106 million Bitcoin accounts on the planet today, 8 billion people and a fraction of a few hundred million companies about 400,000 bitcoin transactions have been processed.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 big-ticket purchases.With a severely limited supply and increasing daily usage, the price of Bitcoin should rise in the future , such as Kiyosaki’s social media accounts, should increase public interest in this fledgling digital currency.
Bitcoin won’t replace the dollar overnight, and it may never, but it may one day serve similar purposes for more than a few early adopters.
I don’t know how deeply Robert Kiyosaki has analyzed Bitcoin and its future, and his near-term price targets range from “very bullish” to “kind of extreme.” Feel free to take them with a generous pinch of salt.
However, 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 regular part of any investor’s financial instruments, right next to the classics like stocks, gold and real estate.
With or without Robert Kiyosaki, this could be the start of a new era in personal finance and wealth management, and his involvement certainly won’t hurt Bitcoin It’s a good idea to have some exposure to Bitcoin in your portfolio these days, as the catalysts I’ve highlighted continue to play out.
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Anders Bylund has positions in Bitcoin and Coinbase Global.The Motley Fool has positions in and recommends Bitcoin and Coinbase Global.The Motley Fool has a disclosure policy.
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