Gold vs Bitcoin: Author and investor Robert Kiyosaki weighed in on the long-running debate between gold and Bitcoin, arguing that while both have a place in a diversified portfolio, Bitcoin is the superior long-term investment.
Responding to a common question on asset allocation in a social media post on X on Monday, February 9, the Rich Dad Poor Dad author said he personally owns gold, silver and Bitcoin, but if forced to choose between gold and Bitcoin, his preference would be digital gold. The reason? He said it comes down to supply dynamics.
Kiyosaki's comments come on the backdrop of the sharp plunge in Bitcoin prices. The prices of Bitcoin have steadied at $70,000 but are down 44% from their record high of above $126,000. While gold prices, too, have corrected from their peak, the decline is just 10% from the peak of nearly $5,595.
Kiyoaki says Bitcoin is finite unlike gold
Kiyosaki pointed out that gold, despite its reputation as a scarce asset, is effectively “infinite” in economic terms.
“Because gold is in theory infinite. When the price of gold rises, more gold miners, which I am….will dig more,” he said, noting that higher prices incentivise increased production. This elasticity of supply, according to him, limits gold’s long-term upside.
Bitcoin, on the other hand, operates on a fundamentally different model. “Bitcoin, by design, is limited to 21 million... a number which we are near now. That means by design, no more Bitcoin can be added after 21 million are mined,” Kiyosaki noted, referring to the cryptocurrency’s hard-coded supply cap.
With most of those coins already mined, no additional Bitcoin can ever be created beyond this limit. This built-in scarcity, he argues, gives Bitcoin a structural advantage. "That means the price of Bitcoin should only go up," Kiyosaki said.
Bitcoin is often referred to as “digital gold.” According to Kiyoasaki, Bitcoin improves on gold’s weaknesses by being finite, decentralised and immune to increased production.
He added that his early investment in Bitcoin has validated this thesis, even as he continues to mine gold and drill for oil as part of his broader asset strategy.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.
