If Bitcoin starts trading at $50,000, its market cap will then rise to $928 billion which is about 10% of the market cap of gold.
Robert Kiyosaki, the author of the famous book “Rich Dad Poor Dad” has joined the tall list of experts who firmly believe that Bitcoin will set the world ablaze in 2021 with its price. According to his price prediction, there is a huge potential in the Bitcoin market because its market cap is just 2.9% of that of Gold.
Kiyosaki is also an investor with his portfolio containing a fair amount of precious metals. Bitcoin is currently trading around the $19,400 price zone in an attempt to break its resistance to price above its all-time high, something Kiyosaki says is the beginning of a rally.
Kiyosaki Explains His Bitcoin Price Prediction
Firstly, Kiyosaki believes that the market cap of Bitcoin is still in the early phase when compared head to head with Gold. The current price of Bitcoin is a reflection of a market cap not even up to 3% of the market cap of Gold. Meaning the digital asset has a lot of potential ahead.
When Bitcoin trades at $50,000, its market cap will then rise to $928 billion which is about 10% of the market cap of Gold which is still low. Kiyosaki also based his Bitcoin price prediction on the low correlation of the Bitcoin market to the US stock market. The reason for the low correlation is linked to the rise in investors’ interest in Bitcoin when risk-on assets increases. Also, investors find comfort in Bitcoin in situations where they seek to hedge against inflation especially in recent times where the central banks have injected liquidity into the economy causing stock prices to rise as well.
Kiyosaki also based his Bitcoin price prediction on the institutional inflow of money into the BTC market. According to him, the next stop is $50,000.
“Glad I bought Bitcoin. Next stop $50k. Wall of institutional money coming 2021. Buy below $20k. If you missed Bitcoin, buy silver. Silver set to move due to AOC’s Green New Deal. America in trouble. Future bright for gold silver Bitcoin and entrepreneurs, ” he said.
Institutional interest in Bitcoin has hit a different level with reports revealing that institutional-focused platforms have overtaken some of the main retail exchanges in terms of open interest and volume trade. Typical evidence is the performance of Grayscale Investments LLC (OTCMKTS: GBTC) due to high institutional interest as it has exceeded the $13 billion of assets under management.
The Bitcoin price prediction of Kiyosaki is in line with that of Tone Vays, a popular Bitcoin influencer claiming Bitcoin will trade $50,000 in 2021. According to him, Bitcoin is a true safe-haven, and the recent rise in both retail and institutional interest will play a massive role. His Bitcoin price prediction is an interesting one. He stated that Bitcoin would maintain the above $10,000 price level for the rest of the year, then enter the $20,000 price zone in 2021. From there, the price will surge to $45,000 then eventually settle at $50,000.
Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
