Over the past few years, Robert Kiyosaki, author of the best-selling personal finance book Rich Dad Poor Dad, has become a strong advocate of Bitcoin (BTC -1.11%) as a potential path to "rich dad" status. While some of his calls on Bitcoin in the past have been controversial, he's now absolutely convinced that Bitcoin is going to $100,000 by June.
Given that Bitcoin is currently trading at around $50,000, that would amount to a near doubling within a remarkably short period of time. So why is Kiyosaki so certain this is going to happen in 2024?
Bitcoin ETFs and the democratization of crypto
One major factor, of course, is that the Securities and Exchange Commission (SEC) recently approved the creation of nearly a dozen spot Bitcoin exchange-traded funds (ETFs). This immediately unlocked Bitcoin as a potential investment for many retail investors who might have otherwise remained on the sidelines when it comes to crypto. It is now possible for people to invest in Bitcoin without the need for any specialized crypto knowledge.
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As soon as the SEC approved the new ETFs, Kiyosaki started adding to his already substantial Bitcoin position. As of January, Kiyosaki said he owned 66 Bitcoins, worth more than $3 million at current market prices.
Bitcoin as a hedge against financial uncertainty
The Rich Dad Poor Dad author is increasingly concerned about the growing likelihood of new banking and financial market crises. He now says that only Bitcoin, gold, and silver -- all commodities with relatively fixed supplies -- are worth holding in unstable times. As a result, Bitcoin could become a safe haven asset for investors if we encounter any new market turbulence in 2024. We saw that already during the regional banking crisis in early 2023, when many investors shifted into Bitcoin.
Kiyosaki also sees Bitcoin as a potential hedge against inflation. That's because Bitcoin has a maximum lifetime supply of just 21 million coins, and the pace of new Bitcoin creation is carefully controlled by an algorithm. Every four years or so, the rate of new Bitcoin production drops by half, in an event known as a halving.
Each halving potentially increases Bitcoin's allure to investors looking for a hedge against inflation. If you are concerned about the Federal Reserve's willingness to expand the money supply, Bitcoin could be an attractive option.
Buy the dip on Bitcoin
In response to a question he says he's often asked -- what he would do if the price of Bitcoin crashed -- Kiyosaki (writing on the social media platform X) had a simple answer: "I would be happy and I would buy more, once the crashing stops." In short, he's so convinced that Bitcoin is a form of sound money that he would view even a sustained market downturn that crushes the value of his Bitcoin holdings as a buying opportunity.
To use a bit of Wall Street lingo, he'd buy the dip on Bitcoin. Instead of panicking every time it drops by 10% or more, he would view those events as opportunities to buy Bitcoin on sale.
That's exactly what happened at the start of this year. Bitcoin was trading for nearly $45,000 when the SEC approved the new spot Bitcoin ETFs. But the price soon plunged to under $40,000, and some investors panicked, convinced that the price was headed to $20,000 or lower. But guess what? After that more than 10% dip, it is back up to more than $50,000 and is now up nearly 30% for the year.
How realistic is Bitcoin soaring to $100,000 by mid-year?
While there are plenty of market experts who are convinced that Bitcoin will end the year above $100,000, the big question is just how quickly this might happen. The good news is that the Bitcoin halving in April is still to come, so a dramatic price move for the world's most popular cryptocurrency by June is not entirely out of the question.
As with any asset, though, it's best to take a long-term view rather than trying to time the market. And Bitcoin's long-term outlook is nearly unparalleled. While some of the investment advice of the Rich Dad Poor Dad author might be controversial, there's one thing that's not. Buying Bitcoin before it skyrockets in value again might just be the single best investment you can make this year.
