Robert Kiyosaki, the financial guru behind “Rich Dad Poor Dad,” is a vocal proponent of Bitcoin, highlighting its unique characteristics compared to traditional assets.
Kiyosaki’s Bitcoin Bull Thesis: Scarcity is King
Kiyosaki, a known advocate for Bitcoin ownership, emphasizes the limited supply as its defining feature. Unlike gold and silver, where increased prices incentivize discovery of new reserves, Bitcoin’s supply is capped at 21 million.
In his recent post, Kiyosaki states, “That’s why I love Bitcoin. No matter how high the price of Bitcoin goes there will only be 21 million ever.” This fixed supply, coupled with a decreasing issuance rate, creates scarcity – a key driver of value in Kiyosaki’s view.
Limited Supply vs. Changeable Supply: A Key Distinction
Kiyosaki contrasts Bitcoin with traditional assets like stocks, gold, and oil. These assets have variable supplies influenced by market forces and human intervention. For example, stock buybacks can reduce a company’s outstanding shares, impacting price. Similarly, discoveries of new oil fields can increase supply and potentially affect prices.
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Bitcoin’s Fixed Supply: A Guarantee or a Gamble?
While Kiyosaki believes the 21 million supply limit is a near certainty, there is a theoretical possibility of a “51% attack.” This hypothetical scenario involves a group controlling over half of Bitcoin’s mining power, enabling manipulation of the network and potentially the supply.
The (Highly) Improbable Threat of a 51% Attack
Kiyosaki acknowledges the 51% attack risk but deems it highly unlikely. Such an attack would require immense resources and collaboration between powerful entities like governments or large corporations.
The Bottom Line: Scarcity vs. Security
Kiyosaki’s core argument rests on Bitcoin’s unique supply structure. While the fixed supply offers a compelling case for long-term value, the possibility of a 51% attack, however remote, underscores the inherent risks associated with digital assets
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