Rich father poor father Author Robert Kiyosaki generally recommends investing in rock-solid assets. His favorite ideas include: Precious metalsreal estate, or running your own business.
With Kiyosaki’s focus on value-oriented assets and income-producing investments, I’m intrigued by his recent projections. 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, aiming for $175,000 to $350,000 per coin this year.
Bitcoin rose 119% in 2024, rising from $42,221 to $92,627 per coin. Kiyosaki’s projections work out to a 2025 price increase of a minimum of 89% and a maximum of 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 so-called halvings change the economic model of Bitcoin, as the fixed costs of Bitcoin mining remain unchanged while the flow of new Bitcoins slows down.
Without sharp increases 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 the validation and publication of Bitcoin transactions. So Bitcoin goes up after every halving, usually after a 9 to 12 month delay.
While ongoing price gains appear to be on schedule for the first three quarters, most of this cycle’s growth may be lurking around the corner.
Regulators approved 11 exchange-traded funds (ETFs) tracking the real-time price of bitcoin in January 2024. The entry of spot bitcoin ETFs gave a large group of investors easy access to bitcoin.
Instead of opening accounts with a cryptocurrency brokerage and learning a whole new system to invest in the world of digital assets, anyone with a stock brokerage account can access names like iShares Bitcoin Trust(NASDAQ: IBIT ) or ARK 21Shares Bitcoin ETF(NYSEMKT: ARKB ).
These funds manage real bitcoin portfolios, usually with the help of Coinbase(NASDAQ: Coin) Prime 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 Thursday’s trading at $97.27 a share, while the iShares Alternative landed at $55.37.
If you know how to buy stocks, you know how to buy spot bitcoin ETFs. These shares are available in retirement accounts, or they can be part of an institutional investor’s broader portfolio, etc. ETFs make it easy to own Bitcoin in a number of ways.
Unlocking Bitcoin investments for banks, capital management funds and financial advisors could have a game-changing impact on Bitcoin. If these financial powerhouses want to add digital assets to their standard portfolios, you’ll see a huge influx of old-school capital into the crypto market.
The world’s top 500 money managers have $128 trillion under management at the end of 2023, according to WTW. That sea of invested capital might get even higher in 2024, depending on S&P 500(SNPINDEX: ^GSPC) The index rose 23% last year. Bitcoin’s total market value is about 1% of combined institutional investor accounts. They can change the Bitcoin supply and demand equation very quickly by allocating a small portion of their assets to this market.
Kiyosaki’s bullish price target is part of another potentially game-changing catalyst: increased 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 very small, and Bitcoin users don’t do much with their accounts. About 400,000 Bitcoin transactions were processed on an average day in December 2024. This is not the full extent of real-world use.
Now imagine a world where Bitcoin (and other cryptocurrencies) are commonly used by ordinary people, at least for big-ticket purchases. With a strictly limited supply and increasing usage day by day, the price of Bitcoin should rise in the foreseeable 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 will not replace the dollar overnight, and it probably never will. But it may someday serve similar purposes, beyond 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 “very bullish” to “kind of extreme”. Feel free to take them with a generous pinch of salt.
Still, I can’t understand the fact that people like Kiyosaki are taking a serious interest in Bitcoin. This digital asset is looking like a common part of any 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 It is a good idea to have some Bitcoin exposure Catalysts like the ones I’ve highlighted play out in your portfolio these days.
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Anders Bylund Bitcoin and Coinbase have global positions. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. Motley Fool has a Disclosure Policy.
