Salinas Pliego: Every Investor Should Have Bitcoin In Their Portfolio
The 3rd wealthiest billionaire in Mexico, Ricardo Salinas Pliego, said that Bitcoin should be part of every investor’s portfolio. Salinas Pliego recently announced that 10% of his portfolio is in Bitcoin, and he is planning this for long term.
The subtitled clip of the video was posted by Anthony Pompliano, who commented, “Incredible to see this from @RicardoBSalinas given his historic wealth and success.”
Here is a video of Mexico’s third wealthiest man explaining why he believes all fiat currencies are a fraud and he wants to hold bitcoin over the next 30 years.
The original 8-minute video is in Spanish for those interested:
The Reason Bitcoin Should Be Part Of Your Portfolio
Michael Saylor famously said that you have to invest at least 100 hours studying Bitcoin before you even start to understand it. Salinas Pliego, apparently has invested the time to study Bitcoin. He said:
“I’ve invested a lot of time studying it, and I think that it’s an asset that should be part of every investor’s portfolio. It’s a valuable asset, with international value, that’s traded with enormous liquidity at a global level. And that’s reason enough for it to be part of any portfolio. Period.”
Fair enough, but that is something that could be said about the Dollar as well. The US’s currency holds international value and can be exchanged with ease for local money in any market.
So, What About Fiat Currencies?
The problems with fiat currency is money printing and inflation, which every year devalue the purchasing power of the currency. As Salinas Pliego bluntly puts it:
“Fiat is a fraud. I started my professional career in ‘81. The Peso was at 20 x 1 (USD.) Today, we are at 20.000 x 1. That’s all there’s to know. And that’s here in Mexico, because if we look at Venezuela, Argentina, or Zimbawe, the numbers loose all proportion. The fraud of fiat is something inherent to the fiat system, and we’re watching it happen in the USA. The monetary emission went to the moon, you understand. The Dollar as hard money is a joke.”
In 1993, Mexico pulled out the Peso (MXP) in phases and introduced the Nuevo Peso (MXN, “New Peso”.) One MXN is worth one thousand MXP. Salinas Pliego’s numbers are accurate.
Also, notice how he casually mentions “went to the moon” meme. This man is not new to crypto sphere.
What about Ethereum as Store Of Value?
According to Salinas Pliego, Ethereum has many qualities, but being a store of value isn’t one of them:
“Bitcoin’s finite supply, the 21 million, that’s the key of the whole thing. That’s what I was saying about Ethereum. As long as they don’t have a finite supply, I don’t believe them at all. For all I know, they emit more and your asset depreciates.”
When the EIP 1559 proposal comes into effect, Ethereum will burn some ETH after every transaction. However, the daily issuance will be much higher than the daily burns. And there’ll not be a hard cap.
