Robert Kiyosaki, the renowned entrepreneur, investor, and author of “Rich Dad, Poor Dad,” has addressed the Bitcoin versus gold debate. In an X post shared with his followers, Kiyosaki practically dismissed the endless battle of supremacy between investors who prefer one.
Robert Kiyosaki Offers Approach to Asset Ownership
Kiyosaki adopted a practical use-case approach to end the debate from his viewpoint. After expressing his frustration at the debate on which asset is better, the investor maintained only one question was relevant. He asked,
“Gold or Bitcoin? In my opinion the only facts that count are how many gold coins do you own and how many Bitcoin?”
The author emphasized that the real value lies in possessing these assets, not in needless debates about their relative merits. He hinted that the crucial decision that will matter to an investor, in the long run, is practical ownership. The quantity one owns of both assets matters more as a store of value.
Robert Kiyosaki has consistently advised investors to protect their funds against inflation by betting on Gold, Silver, and Bitcoin. As reported earlier, Kiyosaki always urges investors to take advantage of the low prices of these assets to invest.
While Kiyosaki chose to focus on the value of these assets, other notable stakeholders in the space differ. For instance, a gold enthusiast, Peter Schiff, contributed to the debate in an X post. He highlighted the performance of the precious metal over Bitcoin.
According to Schiff, the current market corrections have reduced Bitcoin ETF gains to about 10% while gold is up 24%. This suggests that he favors gold over Bitcoin.
Are Institutional Investors Heeding Robert Kiyosaki’s Advice?
Despite being launched in 2009, most investors saw Bitcoin as a speculative asset. However, during the COVID-19 pandemic, investors embraced the digital asset when they noticed its stability despite a crash in stock values.
Since January, when the U.S. Securities and Exchange Commission granted regulatory approval for spot Bitcoin ETF (exchange-traded funds), institutional investors have flocked to it.
Traditional institutions like JPMorgan and Goldman Sachs, amongst others, are now all exposed to Bitcoin. Even though David Solomon, Goldman Sachs’ CEO, considered Bitcoin a speculative investment, the bank has entered the Bitcoin ETF space.
In the second quarter of the year, Goldman Sachs invested $418 million worth of Bitcoin. Financial experts anticipate that with the growing adoption of Bitcoin, its utility in everyday transactions will continue to soar.
Despite the adoption, gold remains an asset of choice for traditional investors. Precious metals retain their value during market corrections, making them useful hedges against recession and inflation.
Hence, as Robert Kiyosaki rightly noted, any investor seeking to protect their funds can choose to do so in either gold or Bitcoin.
Gold Versus Bitcoin: Market Capitalization and Stability
Regarding market capitalization, Bitcoin is valued at $1.18 trillion and maintains the top spot among crypto assets. Experts consider this a significant achievement for an asset that has existed for approximately ten and a half years.
In comparison, gold’s market capitalization stands at over $17.501 trillion. This value represents the current price of gold multiplied by the global gold reserve above ground.
According to data, Bitcoin price was trading at $59,954 at the time of writing, while gold was at $2,606 per ounce.
