Renowned investor Robert Kiyosaki, the author of the famous book Rich Dad Poor Dad, has once again stirred up the financial world with his latest comments on gold and Bitcoin (BTC). On September 13, Kiyosaki took to social media platform X (formerly known as Twitter) to express his thoughts on the long-standing debate over which asset holds more value. He raised a critical point, questioning why the debate even exists.
The Roots of the Gold vs. Bitcoin Debate
Kiyosaki, widely known for his personal finance expertise through his best-selling book, has helped millions achieve financial freedom. Drawing from this vast experience, he emphasized that the focus shouldn’t be on whether gold or Bitcoin performs better in markets or which asset offers more technological innovation. Instead, he believes the essential question is how much of these assets individuals actually own.
The debate between gold and Bitcoin stems from contrasting views on their roles in the financial markets. Due to its limited supply, Bitcoin is often dubbed “digital gold” and has experienced rapid growth in a short time. However, critics argue that Bitcoin’s historical volatility makes it a risky store of value, especially during economic crises when stability is most needed.
I don’t get it. Why all the debate about what is better? Gold or Bitcoin? In my opinion the only facts that count are how many gold coins do you own and how many Bitcoin?
End of discussion.— Robert Kiyosaki (@theRealKiyosaki) September 14, 2024
Gold: A Traditional Store of Value
Gold, on the other hand, has long been considered a reliable store of value. While gold is seen as a safe haven, it lacks the explosive growth potential and technological innovation offered by Bitcoin. In essence, while gold is dependable, it doesn’t carry the same cutting-edge appeal as Bitcoin.
This comparison between the two assets has sparked heated discussions among investors. Many ask whether Bitcoin will eventually replace gold as a safe-haven asset. Yet, figures like Kiyosaki dismiss these debates, asserting that the real focus should be on how much individuals own, rather than which asset is superior.
The Relationship Between Bitcoin and Gold Prices
According to data from crypto analytics platform CryptoQuant on September 13, there has been a strong positive correlation between Bitcoin and gold prices. A crypto analyst known as “TheDustyBC” on X shared data showing that the relationship between the two assets has been historically volatile. Despite the fluctuations, 2024 has seen a positive trend, with the correlation coefficient nearing 0.6.
This suggests that Bitcoin is evolving to become more of a store of value, much like gold. The fact that Bitcoin and gold are showing similar price movements adds weight to the argument that Bitcoin could one day be as reliable as gold in the investment world.
Kiyosaki’s Perspective
For Kiyosaki, the gold vs. Bitcoin debate is misplaced. The primary focus, in his view, is on owning these assets, rather than deciding which is better. With the growing correlation between the two, it’s becoming clearer that Bitcoin may eventually solidify its position alongside gold as a store of value.
As the debate continues, the important question investors should be asking is not whether to invest in gold or Bitcoin, but how much of each they should own.
