Key takeaways:
Robert Kiyosaki’s $750,000 Bitcoin target implies a 95% discount versus gold, which is lower than the 2024 peak.
$750,000 Bitcoin might not be that significant if daily expenses, housing and energy rise in like kind.
Robert Kiyosaki, author of the “Rich Dad Poor Dad” series, stated in a social media post on Monday that a massive financial “bubble burst” is imminent. The financial educator suggests this unprecedented economic crisis will eventually lead to a $750,000 Bitcoin (BTC) rally within one year of the crash.
While Kiyosaki’s estimate seems extremely bullish at first sight, a more granular view gives deeper meaning to his price prediction.
Source: X/theRealKiyosaki
For a prediction to be valid, one needs a timeframe, even if it is stretched out over the next 12 months or more. Even if the Bitcoin price eventually reaches $750,000, the measure of success will largely depend on average US house prices or the annual cost of living for a typical family.
Accelerated expansion of the global monetary supply, such as the period between 2020 and 2021, tends to trigger a surge in demand for scarce assets, regardless of official government inflation metrics. For instance, the S&P 500 gained 52% between July 2020 and December 2021, while average home prices in major US capital cities surged by 38% in two years.
Global broad money supply (left) vs. S&P 500 (right). Source: streetstats.finance
Kiyosaki anticipates that gold prices will surge to $35,000 per ounce one year after the financial “bubble burst,” which would be a 546% gain from its highest-ever daily close. As a comparison, Bitcoin’s optimistic $750,000 target stands 500% above its $124,724 record daily close.
Kiyosaki predicts gold will subjugate Bitcoin as a store of value
Kiyosaki’s target for gold yields a $243.2 trillion market capitalization, which is 4.4 times larger than the current aggregate market cap for the entire S&P 500.
Bitcoin-to-gold ratio. Source: TradingView / Cointelegraph
Kiyosaki believes the Bitcoin-to-gold ratio should reach 21.5, far below the 40 all-time high from December 2024. More concerningly, the current 200-day…
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