Bitcoin Price Prediction: $50,000 By 2021, 'Rich Dad Poor Dad' Author Suggests

A wall of institutional money is set to come to Bitcoin, and because of this inflow, the benchmark cryptocurrency will likely to move way past $20,000 and hit $50,000, said Robert Kiyosaki, author of "Rich Dad Poor Dad."

The real estate mogul and best-selling author has been an advocate of Bitcoin, gold and silver. Speaking about institutional inflow into Bitcoin in 2021, Kiyosaki tweeted that he was glad he bought the dominant cryptocurrency and encouraged others to buy it while it's still below $20,000.

At $50,000, Bitcoin would be around 10.3% of gold's current market cap.

Institutional investors have long been considered to be a catalyst for the next major bull run, in contrast with the retail-driven rally in 2017. Coupled with economic and political uncertainty and the printing of more money, institutional investors were likely looking for a hedge against inflation. Gold is one such hedge and Bitcoin has long been dubbed as gold's digital version.

For those who missed the chance to buy Bitcoin, Kiyosaki recommends silver. "Silver set to move due to AOC's Green New Deal," he said, referring to the proposed legislation to address climate change and economic inequality.

Bitcoin could rally in the upcoming months because of its low correlation with the stock market. While gold is correlated to traditional assets, Bitcoin normally increases in price sharply when equities increase in value, Cointelegraph reported.

The low correlation stemmed from an increase in investor appetite toward the benchmark cryptocurrency, the publication added. While the printing of more money has resulted in a spike in the stock market, investors are preferring Bitcoin today because of the "hedge against inflation" play.

A good indicator of increased institutional adoption is the Bitcoin Futures Market at the Chicago Mercantile Exchange (CME). Currently, CME's open interest is at $1.07 billion, higher than most other exchanges. This means interest from institutional investors are now at a point that it's higher than retail investors.

Institutional adoption is growing massively, thanks to MicroStrategy, Square and MassMutual, the three billion dollar firms that have put Bitcoin into their treasuries.