Does Robert Kiyosaki’s Bullish Bitcoin 2025 Prediction Make Sense?

Rich Dad Poor Dad author Robert Kiyosaki usually recommends investing in solid assets. Her favorite ideas include precious metalsreal estate or run your own business.

Given Kiyosaki’s focus on value-oriented assets and income-generating investments, I’m intrigued by his recent projections for the Bitcoin (CRYPTO: BTC) cryptocurrency Two weeks ago, Kiyosaki set a $350,000 price target for Bitcoin by 2025. This Thursday, he doubled down on that prediction, targeting this year’s price range of $175,000 to $350,000 per coin.

Bitcoin gained 119% in 2024 from $42,221 to $92,627 per coin. Kiyosaki’s projections reach a price gain by 2025 of at least 89% and as much as 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 rewards for mining new coins last April. These so-called halvings change the economic model of Bitcoin, as the fixed costs of mining Bitcoin remain unchanged while the resulting inflow of new Bitcoins slows.

Without a sharp increase in prices over time, cryptominers would not be able 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 skyrocket after each halving, usually after a 9-12 month lag.

Ongoing price gains appear to be on the schedule of the first three halves, with most of the increases in this cycle likely just 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 allowed large groups of investors easy access to Bitcoin.

Instead of opening accounts with a cryptocurrency brokerage and learning a whole new system for making investments in the world of digital assets, anyone with a stock brokerage account can access names like iShares Bitcoin Trust (NASDAQ: IBIT) or ARK 21 Shares Bitcoin ETF (NYSEMCT: ARKB).

These funds manage real Bitcoin wallets, usually with the help of the Coinbase (NASDAQ: CURRENCY) Leading crypto asset custody service. Buying shares of these ETFs is for all intents and purposes the same as buying a small portion of a Bitcoin. For example, the ARK 21Shares Bitcoin ETF closed Thursday at $97.27 a share, while the iShares alternative hit $55.37.

If you know how to buy stocks, you already know how to buy a spot Bitcoin ETF. These stocks are available in retirement accounts, or can be part of an institutional investor’s massive portfolio, etc. ETFs make Bitcoin easier to own in many ways.

Unlocking Bitcoin investments for banks, wealth management funds and financial advisors could have game-changing effects on Bitcoin. If these financial powerhouses want to incorporate digital assets into their standard wallets, 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, according to WTW. This ocean of invested capital is likely to soar further in 2024, according to the S&P 500 (SNPINDEX: ^GSPC) the index gained 23% last year. Bitcoin’s total market value is worth about 1% of institutional investor accounts combined. They could 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 currently about 106 million Bitcoin accounts on the planet, a small fraction of 8 billion people and several hundred million businesses. Most of these accounts are quite small and Bitcoin users don’t do much with their accounts. As of December 2024, about 400,000 Bitcoin transactions were processed on an average day. This is not of much real world use.

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 increasing day-to-day usage, the price of Bitcoin should soar in this potential future. Talking about the cryptocurrency in widely known 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 may never. But one day it might serve similar purposes, for more than just a handful of early adopters.

Chart of Bitcoin transactions per day — Bitcoin transactions per day data for YCharts.

I don’t know how much 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 getting serious about Bitcoin. This digital asset is starting to look like a normal part of any investor’s financial toolbox, 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 commitment is sure not to hurt Bitcoin’s cause. It probably is a good idea to have some exposure to Bitcoin in your portfolio these days, as 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 one disclosure policy.

Does Robert Kiyosaki’s Bullish Bitcoin 2025 Prediction Make Sense? was originally published by The Motley Fool

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