According to Forbes, Mexico’s third wealthiest billionaire is a Bitcoin supporter. Ricardo Salinas Pliego has done his studies and is ready to show you the way. The billionaire recently revealed that Bitcoin makes up 10% of his assets. Why? Salinas Pliego is aware of a handful of the factors that contribute to Bitcoin’s status as the world’s most secure currency.
The Benefits of Including Bitcoin in Your Investment Portfolio
According to Michael Saylor, you must devote at least 100 hours to learning about Bitcoin before you can begin to acquire it. Salinas Pliego, his Mexican counterpart in this city, clearly put in the effort. He says the following about Bitcoin:
“I’ve spent a lot of time studying it, and I believe it’s an asset that every investor should have in their portfolio. It’s a significant asset with an international worth that’s traded on a global scale with great liquidity. That alone is reason enough to include it in any portfolio. Period.”
Those are essential arguments, but they may also be applied to the Dollar. The US dollar has international worth, and you may easily exchange it for local cash in any market.
What is Salinas Pliego’s Thoughts on Fiat Currency?
Money printing and inflation degrade the purchasing power of all holders, the facts are the facts. There’s no getting around it. “Fiat is a fraud,” as Salinas Pliego puts it. In 1981, I began my professional career. The Peso was valued at 20 pesos to the dollar (USD.) We’ve reached 20.000 x 1 today. That’s all there is to know about it. And that’s just in Mexico; in Venezuela, Argentina, or Zimbabwe, the numbers are completely out of proportion. The fraud of fiat is a feature of the fiat system, and we’re seeing it in action right now in the United States. You realize, the monetary emission traveled to the moon. The Dollar as a form of hard currency is a farce.”
It’s worth noting that Mexico phased out the Peso (MXP) in 1993 and replaced it with the Nuevo Peso (MXN, or “New Peso”). One MXN is equal to 1,000 MXP. As a result, Salinas Pliego’s calculations are right.
Also, take note of the passing reference to the “went to the moon” meme. This individual appears to be well-versed in the field of cryptography.
What Makes Ethereum Unsuitable as a Store of Value?
Fans of Vitalik, please accept my apologies. Ethereum has numerous properties, but one of them is that it is not a store of value. In plain terms, Salinas Pliego says:
“The key to the whole affair is Bitcoin’s finite quantity, the 21 million. That is exactly what I meant when I mentioned Ethereum. I don’t believe them as long as they don’t have a finite supply. They may emit more, and your asset may depreciate.”
Yes, Ethereum will burn some ETH after each transaction after the EIP 1559 proposal takes effect. Even yet, daily issuance will be far greater than daily burning. There will also be no hard cap.