Confidence in the fiat currency seems to be waning day by day as multi-billion dollar investors keep turning to crypto as a hedge against current and future inflation. Last year, Michael Saylor, Bill Miller, Elon Musk, and Stanley Druckermiller were just a few in a long list of high-profile investors who have given Bitcoin a significant place in their investment portfolios.
In a recent interview, Ricardo Salinas Pliego, who is the third richest person in Mexico, even went so far as to label fiat currencies as fraudulent as the holders tend to lose purchasing power due to devaluations from overprinting and inflation. Salians called the dollar a joke and said:
“Fiat is a scam. I started my professional career in ’81. The peso was around $ 20 to $ 1. Today we’re at $ 20,000 to $ 1. That’s all you need to know. And here in Mexico, because if we look at Venezuela, Argentina or Zimbabwe, the numbers lose all proportions. The fiat fraud is something inherent in the fiat system and we are watching it happen in the US. The money issue went to the moon, you see. The dollar as hard money is a joke. “
In contrast, his stance on Bitcoin underscored his belief in Fiat. The investor stated that the key to its success was the limited offer of 21 million coins. He added Ethereum to his list of assets he “did not trust” for the same reason, as its unlimited offer could cause the assets to decline in value in the future. He added:
“I’ve spent a lot of time studying bitcoin and I think it’s an asset that should belong in every investor’s portfolio. It is an asset that has value, an international value that is traded with tremendous liquidity on a global scale and that is reason enough to include it in any portfolio, period. ”
The billionaire announced in November last year that he had invested 10% of his liquid portfolio in Bitcoin. His net worth is estimated at over $ 13 billion.
Latin American appeal to Bitcoin
Latin American currencies have been plagued by hyperinflation over the decades as governments have increasingly artificially minted money, negatively affecting the purchasing power of their citizens.
No wonder, then, that these economies began embracing Bitcoin very early on, with the top crypto countries in 2019 being Brazil, Colombia, Argentina, and Mexico. While the US Fed has excessively expanded the circulation of US dollars, El Salvador recently announced Bitcoin as legal tender, and neighbors such as Argentina, Panama, Paraguay and Nicaragua had expressed similar interest.
Subscribe to our Newsletter