MEXICAN BILLIONAIRE CLAIMS BITCOIN TO BE MODERN GOLD

Ricardo Salinas Pliego sees Bitcoin as modern Gold

  • Bitcoin has been considered as the Gold for the modern generation by Mexican billionaire
  • Ricardo Salinas Pliego believes the scarcity of BTC can help the asset gain more value
  • The Mexican entrepreneur observed that Gold is not used as a currency although it is so precious
  • Besides BTC, Salinas also advocates few concerned privacy assets like Monero and Zcash

Bitcoin has seen several new highs over the period of the last year. Following the performance and potential of the asset, several considered the coin as the digital form of Gold. Indeed, many believed that the coin could potentially replace the traditional Gold. On Monday, Ricardo Salinas Pliego, a Mexican businessman, mentioned that Bitcoin should be in his portfolio. The entrepreneur also claimed that the limited issuance of BTC is the main factor that attracted him.

BILLIONAIRES HAVE CONTINUED TO SHOW INTEREST IN BITCOIN

Ricardo Salinas Pliego is the founder of Grupo Salinas and the third richest person in Mexico. Recently, the billionaire had an interview with José Rodríguez, the director of Blockchain Land. 

In the interview, the Mexican entrepreneur emphasizes considering BTC as a financial asset. The entrepreneur showed interest in adding Bitcoin to his digital portfolio. Salinas stated that all the advantages provided by the emerging asset class seem to be Gold for the modern world.

Salinas also explained that for him, it is not significant whether BTC is a coin or not. Indeed, for Salinas, BTC is an asset that has extraordinary properties. Such properties include divisibility, ease of transfer, and the simplicity of its storage without counterparty risk.

GOLD IS PRECIOUS THOUGH NOT A CURRENCY

Salinas compared Bitcoin to Gold and claimed that even being the most precious metal, Gold is not a currency. He further explained that no individual could carry Gold to shop to purchase a computer. Instead, the individuals will have to convert the value of Gold into fiat currency to make purchases.

On the other hand, Bitcoin is an asset with international value and is traded with liquidity globally.

SCARCITY IS THE KEY TO AN ASSET’S VALUE

While embracing Bitcoin, the Mexican entrepreneur considered its scarcity as one of the key factors. The supply of Bitcoin is fixed to 21 million BTC, meaning only 21 million coins can be mined. Notably, in the current scenario, 18 million coins have already been mined.

The fixed supply that Satoshi Nakamoto sets makes the coin different from fiat currencies issued by the governments. Such inorganic emission of currency could cause the devaluation of the national fiat money. 

Also, it is observed that the limited supply makes Bitcoin different from other cryptocurrencies like Ethereum. Following the fact, Salinas explained that until Ethereum does not have a finite amount of emission, he doesn’t believe it to be anything. Indeed, if an asset emits more, it will depreciate.

SALINAS’ PERSPECTIVE REGARDING CRYPTO ASSETS

Salinas is not a BTC maximalist, as he believes that there are other digital assets with potential use cases. Notably, the billionaire has socially highlighted private assets like Monero (XMR) and Zcash (ZEC).

Salinas believes that privacy is one of the weakest points of BTC. If a user transacts with 1 BTC, then his entire portfolio gets visible to the public. Moreover, everyone can see whom the user sent the money to or where the user is receiving the money, which is concerning in terms of privacy. However, a stranger cannot view private data, as most of the Bitcoin wallets allow infinite addresses.

WHY GOVERNMENTS GLOBALLY HATE BTC?

On one side, finance and business experts value privacy in cryptos. On the other side, governments globally don’t like the emerging asset class. The main reason behind the hatred is that individuals can get out of the fiat trap via cryptocurrencies. 

Salinas is a big fiat criticizer, as he claims that the dollar being a hard currency is a joke. Moreover, he revealed that the US dollar is losing its purchasing power on average by 2-5% each year. Notably, after the COVID-19 pandemic, a huge impact took place over the monetary issues which devalued the currency.

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