Billionaire Ricardo Salinas Pliego, one of the richest people in Mexico, announced that he has allocated approximately 70 percent of his investment portfolio to Bitcoin (BTC).
Salinas, ranked as the seventh richest person in Mexico, argued that fiat currencies are destined to lose purchasing power over time, while stating that Bitcoin is one of the strongest investment tools in the long term.
Salinas, the owner of Grupo Elektra, stated that his belief in Bitcoin is extremely strong, and even revealed that he once advised his wife to mortgage their house and take out a loan to buy Bitcoin. In his statement, Salinas said, “I know this is a controversial topic, but I convinced my wife to mortgage her house and take out a loan to buy Bitcoin.”
According to Salinas, many people hold a significant portion of their wealth in the form of home equity. Therefore, Salinas argued that people should consider converting a portion of their home equity into Bitcoin.
The billionaire stated, “For most people, the biggest investment and savings vehicle is their equity at home. Find a way to transform this into Bitcoin risk, on a larger or smaller scale.”
Salinas supported his view by comparing Bitcoin’s long-term performance to real estate. Recalling that in January 2016, the price of Bitcoin was around $400, Salinas noted that a house in central London, which sold for an average of $1.6 million at the time, was equivalent to approximately 4,000 Bitcoins. He stated that while housing prices have largely remained unchanged over the past 10 years, the same house could be purchased today for less than 30 Bitcoins.
According to Salinas, this comparison reveals that Bitcoin can outperform traditional store of value assets like real estate in the long run.
Salinas’s criticisms of fiat currencies go back much further than Bitcoin. The billionaire businessman said that former US President Richard Nixon’s decision in 1971 to end the convertibility of the dollar into gold and abolish the gold standard was a frequent topic of discussion within his family.
Salinas stated that gold was a significant topic of conversation within the family during the 1970s, adding that governments, particularly the US, were printing money extensively, which increased distrust in the fiat currency system.
Despite Bitcoin’s high volatility, Salinas argues that BTC remains one of the most attractive opportunities for investors. While avoiding short-term price predictions, Salinas responded positively to a question regarding the seven-figure price expectations of Bitcoin bulls like Cathie Wood and Michael Saylor.
Salinas stated that he believes Bitcoin will one day reach $1 million, saying, “Bitcoin will be $1 million. I just don’t know when.”
*This is not investment advice.
