enowned investor Robert Kiyosaki has responded to economist Harry Dent's dire $200 prediction for the price of Bitcoin, offering reasons why such a plunge is improbable according to his analysis. In recent comments, Kiyosaki disputed Dent's bearish outlook and maintained that cryptocurrency offers value as a hedge during times of economic distress.
Harry Dent's Prediction
Well-known forecaster Harry Dent issued a warning in August that Bitcoin could crash all the way to just $200 based on his assessment that the cryptocurrency market was in an unsustainable bubble. Dent, who correctly predicted the tech crash in the early 2000s, sees Bitcoin and other digital assets as exhibits of "bubble psychology" that will face a dramatic pop. He likened the hype around crypto to Tulipmania in the 17th century, arguing that price correction would be severe once the bubble bursts.
Kiyosaki's Perspective
In a post on his Facebook page, Kiyosaki aimed Dent's $200 forecast. While acknowledging that crashes are inevitable in financial markets occasionally, the Rich Dad Poor Dad author argued that drastic plunges for Bitcoin are improbable. Kiyosaki pointed to the increasingly widespread institutional adoption of cryptocurrency as a validation of its staying power. According to his analysis, he further maintained that bitcoin offers a hedge against looming uncertainties like high inflation, which makes its total elimination unlikely.
Crypto as an Inflation Shield
A large part of Kiyosaki's rationale centered around his prediction that runaway currency printing by central banks will roil markets and devalue national currencies. In such an economic environment, he believes holding non-fiat assets like Bitcoin could potentially serve as a worthwhile store of value. Countering this type of scenario formed in the best-selling author's mind is one of the key reasons that bitcoin and crypto are "here to stay." While short-term volatility is normal, Kiyosaki does not see the asset class being relegated to just $200 in the years ahead barring unforeseen black swan events.
