HomeBusinessMexico's third-richest billionaire just bought this popular cryptocurrency

Mexico’s third-richest billionaire just bought this popular cryptocurrency

Bitcoin (CRYPTO: BTC) has rallied post-election as market prices weigh in on the expected effects of President Donald Trump’s economic policies, including some that appear to favor crypto. As a result, Bitcoin recently hit another new all-time high, this time at just over $80,000.

That’s something that hasn’t gone unnoticed by Mexican billionaire Ricardo Salinas Pliego, the third richest person in Mexico and one of the 175 richest people in the world. On social media, he recently posted a chart of Bitcoin above $77,000, along with the following message (in all caps): “NEPHEWS,…I TOLD YOU SO!…BUT, DON’T BE AFRAID…THERE IS STILL A LOT TIME AND YOU CAN BUY MORE!” So should you follow this billionaire’s example and buy Bitcoin?

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The first thing you need to know about Salinas – apart from the fact that as head of the Mexican conglomerate Grupo Salinas, he owns a number of remarkably successful companies – is that he has been a supporter of Bitcoin for several years. For example, in 2020 he suggested that he had invested as much as 10% of his liquid assets in Bitcoin.

And since 2020, he has been making it very publicly clear why individual investors should also buy Bitcoin. Primarily, he has focused on Bitcoin’s ability to hedge against two economic risks he has seen firsthand in Latin America: inflation and fiat currency devaluation.

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Let’s start with inflation, as that is an issue that has recently emerged as a powerful political campaign issue in the United States. Bitcoin is disinflationary by nature. That’s because Bitcoin’s total lifetime supply is limited to 21 million coins, and the rate of issuing new Bitcoin is carefully controlled by an algorithm. There is no central authority – such as a central bank – that can create more Bitcoin.

Additionally, Bitcoin has a halving every four years, further slowing the rate of new Bitcoin issuance. After the halving, the supply of new Bitcoin is reduced by half, and that is what makes Bitcoin disinflationary over time. We have already reached a point where the rate of new Bitcoin issuance has slowed to a trickle, as 20 million of the 21 million coins are already in circulation.

As a result, Bitcoin is becoming increasingly popular as a hedge against inflation, similar to gold. Salinas himself has even suggested that Bitcoin is gold for the modern world. If you’re looking for a long-term store of value, Bitcoin has some of the same characteristics as gold, especially its fixed lifetime supply. So if you want to protect your wealth from the ravages of inflation (which it sees as a tax on fiat money), Bitcoin could be a very attractive investment opportunity.

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