Robert Kiyosaki: 2 Key Laws Fuel $500K Bitcoin Target

Robert Kiyosaki cites Gresham's and Metcalfe's Laws as reasons to invest in Bitcoin. Discover how these principles shape his $500,000 BTC pr

Robert Kiyosaki: 2 Key Laws Fuel $500K Bitcoin Target

Quick overview

  • Robert Kiyosaki emphasizes the importance of investing in Bitcoin due to its ability to preserve wealth compared to traditional fiat currencies.
  • He highlights Gresham's Law and Metcalfe's Law to explain why Bitcoin's growing network makes it a valuable asset.
  • Kiyosaki believes that Bitcoin's strength lies in its self-reinforcing network, which enhances its value as more users join.
  • He predicts Bitcoin could reach $500,000, urging investors to consider it as a hedge against inflation and currency volatility.

Financial author Robert Kiyosaki, of Rich Dad Poor Dad fame, has revealed why he’s investing so much in Bitcoin (BTC). In a recent post titled “ARE YOU BREAKING the LAWS?” on X, Kiyosaki rips into those who ignore the fundamental laws and says that’s why they’re poor.

At the heart of his argument are two laws:

  • Gresham’s Law: Bad money drives good money into hiding, so people hoard valuable assets like gold, silver and Bitcoin.
  • Metcalfe’s Law: Networks create exponential value, so Bitcoin’s growing user base means it’s going to get stronger over time.

Kiyosaki says traditional fiat currencies, or “fake money”, don’t preserve value. He calls Bitcoin, gold and silver his “top three” for preserving wealth.

Bitcoin’s Network Effect is the Key

Kiyosaki says Bitcoin’s strength is its network, which is different from most other cryptos. He uses FedEx and McDonald’s as examples of successful network driven companies and contrasts them with smaller struggling businesses. He says scalable networks underpin sustainable value.

Key points from Kiyosaki’s post:

  • Bitcoin is a self-reinforcing network, gets stronger as more people join.
  • Fiat systems can’t maintain purchasing power over time.
  • Invest in network based assets to build wealth.

He references Michael Saylor, CEO of MicroStrategy, and says “only invest in things a rich person would buy from you”, which means Bitcoin is for high net worth individuals and institutions.

Corporate Adoption and Price Outlook

Bitcoin is being seen as a reserve asset and institutional players are buying in. This week MicroStrategy added 7,390 BTC to its holdings, investing $764 million. They now hold 576,230 BTC worth over $40 billion, purchased at an average price of $69,726 per coin.

BTC/USD

Kiyosaki still thinks BTC will hit $500,000 and is worried about hyperinflation and eroding fiat value. He’s not alone, the market is bullish after BTC just hit an all-time high of $111,970.16.

Market thinks it will go higher. Kiyosaki’s message is for those who want to hedge against inflation and volatile currencies, not just a speculative asset.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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