Bitcoin’s popularity among traditional investors has grown over recent months as governments and central banks take drastic measures to offset the economic damage wrought by the coronavirus pandemic.

The bitcoin price, after rebounding strongly from a coronavirus-induced March crash, has been treading water for the last two months—despite a raft of seasoned investors announcing their intent to buy into bitcoin.

Now, Rich Dad, Poor Dad author Robert Kiyosaki, who has previously praised bitcoin for its scarce properties, has warned “real estate and gold guys are being phased out”—and “the bitcoin world is coming into view right now.”

MORE FROM FORBES‘Drastic’ Bitcoin Trading Slump Invokes ‘Crypto Winter’ Fears

“I think it’s important, especially for old guys like me, to understand the crypto world because that’s the world that’s coming into view right now and us real estate and gold guys are being phased out,” Kiyosaki told his radio show listeners, later uploaded to YouTube. Published in 1997, Rich Dad, Poor Dad advocates the importance of financial literacy and became a New York Times
NYT
bestseller, going on to sell around 40 million copies worldwide.

Kiyosaki, who was speaking to bitcoin and crypto investor Anthony Pompliano, has predicted the bitcoin price will reach $75,000 per bitcoin within three years—up from just under $10,000 now.

“There’s this battle on today between old guys and young guys,” Kiyosaki said, pointing to investors like Warren Buffett, known as the Oracle of Omaha, who are “anti-crypto.”

“As an old guy, it’s taken me a while to get on to [bitcoin and crypto], but now I’m buying it,” Kiyosaki said, adding that he did try to buy bitcoin in late 2017 when the price was nearing $20,000 but didn’t complete the deal.

Kiyosaki’s interest in bitcoin was piqued earlier this year when bitcoin went through a supply squeeze, known as a halving, just as the U.S. Federal Reserve and other central banks around the world were ramping up money printing to prop up economies ravaged by coronavirus-induced lockdowns.

“Bitcoin and other cryptocurrencies are now challenging the hegemony of the U.S. dollar and other fiat currencies,” Kiyosaki wrote alongside the radio interview.

“In May 2020, a historic event cut the daily incoming supply of bitcoin from 1,800 Bitcoin per day to 900 bitcoin per day—a sort of quantitative hardening—opposite of what the Fed is doing by printing trillions of dollars. Central banks, in simplest terms, create money out of nothing. They create ‘fake money’ and loan it to governments. Bitcoin, on the other hand, is completely decentralized meaning that nobody can manipulate the market and there is not any single point of failure,” Kiyosaki wrote, adding “it will be interesting to see how long the central banks will tolerate the competition from cyber money before there is a showdown.”

Last month, legendary investor Jim Rogers warned bitcoin and similar “virtual currencies beyond the influence of the government” will not be allowed to survive. While it is true that bitcoin doesn’t rely on a government to exist, it could still be made illegal.

MORE FROM FORBESCrypto Bull Anthony Pompliano Just Convinced Comedian Bill Burr To Buy Bitcoin

Pompliano, the co-founder of bitcoin and crypto hedge fund Morgan Creek Digital who recently convinced comedian Bill Burr to “get bitcoin,” defended his forecast that bitcoin will hit $100,000 in coming years using the popular but controversial stock-to-flow (SF) model.

“Stock-to-flow ratio models, used in the gold world, have been overlaid with bitcoin price movements that have, over time, become more accurate,” Pompliano said.

However, some have dismissed the SF model, popularized by the pseudonymous Dutch institutional investor who operates under the Twitter account PlanB in a 2019 Medium post, as bitcoin “marketing.”

“The SF paper is not proper empirical analysis, but more akin to a marketing piece in which the author is trying to convince readers that bitcoin is going to be worth a lot more tomorrow,” Nico Cordeiro, the chief investment officer and fund manager at Strix Leviathan wrote recently in a piece for crypto and blockchain news outlet Coindesk.

(Excerpt) Read more Here | 2020-07-09 17:10:00
Image credit: source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.