Salinas Pliego advised moving away from fiat money such as the US dollar, the euro, and the Mexican peso. The billionaire said that physical currencies are a tissue of lies and recommended investing in Bitcoin.
Businessman Ricardo Salinas Pliego, one of the wealthiest men in Mexico, recently posted a Christmas video. He advised his almost one million Twitter followers to invest in Bitcoin (BTC).
The entrepreneur said he would give them some gifts for Christmas, referring to recommendations for the end of the year. One of them related to Bitcoin, the first cryptocurrency by market capitalization.
Salinas Pliego told his followers to move away from fiat money like the US dollar, the euro, the yen, and the Mexican peso. Then, he commented that they are a tissue of lies, and central banks are issuing them more than ever.
The last thing to which the entrepreneur referred has caught the attention of the world population. The printing of banknotes in the United States has increased due to the COVID-19 pandemic. That situation has led to the highest inflation that the country has had in almost 40 years.
The November US Consumer Price Index (IPC) report recently published showed an increase of 0.8%, which led the inflation rate to 6.8%. That figure is more than three times the 2% target expected for this year and the highest since July 1982.
Some readings of inflation higher than expected may drive the Fed to expedite plans to eliminate the stimulus plans approved last year. According to local media outlets, they could cancel them several months before scheduled.
Salinas Pliego Says Good-Bye to the US Dollar and Hello to Bitcoin
The level of inflation reflects how a fiat currency loses purchasing power and shows its devaluation against stronger ones. That situation has encouraged the purchase of cryptocurrencies as a store of value in some Latin American countries.
A report from Blockchain on the growth of Bitcoin (BTC) indicates that inflation drives the purchase of the cryptocurrency. Almost two billion people suffer from two or more digits of inflation, especially in countries like Argentina (52%) and Venezuela (1,575%).
In other words, almost 20% of the population worldwide will lose half of their savings in fiat money within eight years. Besides that loss of purchasing power, national fiat currencies like the Venezuelan bolivar (VED) and the Argentine peso (ARS) do not stop depreciating.
Keeping that in mind, Salinas Pliego ends by telling his followers to invest in Bitcoin. The entrepreneur adds that message to a set of actions regarding the cryptocurrency. The Mexican billionaire said that Bitcoin was the most modern gold, and he began accepting it as a payment method in December.
Some other billionaire entrepreneurs recommend buying Bitcoin but warn that people should be careful. For example, Tim Draper advises not to invest all the savings in the cryptocurrency to have a diversified investment portfolio.
The loss of value of fiat currencies has led many people to turn to cryptocurrencies like Bitcoin as hedges against inflation. Citizens from countries undergoing severe economic crises are increasingly turning to those assets to store value.
By Alexander Salazar
