Ricardo Salinas Pliego, a Mexican Billionaire and the founder of Grupo Salinas declared on Twitter that one-tenth of his liquid assets consists of Bitcoin. He is Mexico’s third-richest man, having a net worth of US $13.3 Billion. 10% of his liquid assets invested in Bitcoin is major news for people around the world.
Economies in Latin America are collapsing and many countries like Venezuela and Argentina are experiencing hyperinflation. This has resulted in fiat currency almost becoming useless in those countries. It is a major reason that Ricardo invested in Bitcoin and other metals.
When Did He First Invest In Bitcoin?
In 2013, Ricardo attended a conference in New York. In one of the sessions, a person from Grayscale explained everything about Bitcoin and its potential. Grayscale is a company that manages Crypto Assets and makes it simple for non-technical people to invest in Bitcoin and other Cryptocurrencies. At that time, the price of one bitcoin was $200. The price almost doubled in 20 days, which was another reason for Ricardo to invest some more in Bitcoin.
Salinas earned massive profit from that investment in Bitcoin. He sold all his investment in Bitcoin in 2017 when the prices were $17,000. Later, he bought some more Bitcoin when the prices were low.
What’s The Reason For Ricardo To Have 10% Liquid Assets In Bitcoin?
The quality that attracted Ricardo towards Bitcoin was that it was a digital asset that could be traded freely throughout the world. But that is not the case with fiat money, because of the many steps and procedures that have to be followed, which involve the government and banks.
Another quality he likes about Bitcoin is that it is a Decentralized Digital currency. The governments cannot control Bitcoin, which is the reason that there is a minimal fee while sending them to another country. Also, the financial situation in Latin America is not improving. With each passing year, inflation is increasing and fiat money is becoming as useless as plain paper.
Limitations of Bitcoin as a Means of Payment
Ricardo believes that Bitcoin is a great store of value but not as a means of payment. Although the application of cross border payments is good, the people who do that are very less in number. The large players who invest heavily don’t use Bitcoin as a means of payment. And the people who want to use Bitcoin as a means of payment are the ones who want to send the money locally and not to people across the borders.
What Are Ricardo’s Future Plans With His Bitcoin Assets?
If the price drops, Ricardo wants to invest more in Bitcoin in the coming years. He thinks of himself as a value investor, which is evident because one-tenth of his liquid assets consists of Bitcoin. He claimed that he wants to invest in Bitcoin and forget about it for 5-7 years. In some years, Bitcoin might become a means of payment in our everyday lives. Governments’ approach towards Cryptocurrency might also change. Overall, people might develop a positive outlook towards Cryptocurrencies in the coming years.
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