Mexico’s Third-Richest Billionaire Just Bought This Popular Cryptocurrency

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

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

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The first thing you need to know about Salinas — other than the fact that he owns a number of remarkably successful businesses as the head of the Mexican conglomerate Grupo Salinas — is that he has been championing Bitcoin for several years now. In 2020, for example, he suggested that he had as much as 10% of his liquid assets invested in Bitcoin.

And since 2020, he has been making a very public case for why individual investors should be buying Bitcoin as well. Primarily, he has focused on Bitcoin’s ability to act as a hedge against two economic risks that he has seen firsthand in Latin America: inflation and fiat currency devaluation.

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

Moreover, every four years, Bitcoin has a halving event, which further slows down the rate of new Bitcoin issuance. After the halving, the rate of new Bitcoin supply is cut by one-half, and that’s what makes Bitcoin disinflationary over time. We’ve already reached a point where the rate of new Bitcoin issuance has slowed to a trickle, given that 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. In fact, Salinas himself has 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 the fixed lifetime supply. So, if you are looking to protect your wealth from the ravages of inflation (which he sees as a tax on fiat currency), then Bitcoin could be a very attractive investment opportunity.

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