Ricardo Salinas, a Mexican billionaire and chairman of Grupo Salinas, took to social media earlier this week to give his thoughts on the recent surge in the cryptocurrency market. The popular pro-Bitcoin advocate offered his followers insights into investing in Bitcoin (BTC) and listed four reasons why every investor should consider buying the apex cryptocurrency.
The corporate mogul with an estimated net worth of $12.9 billion has always been vocal about his position on Bitcoin. Recently, it was revealed that 60% of his liquid portfolio is invested in BTC and equities linked to the digital currency.
In an X post on Monday, Salinas mentioned a hypothetical scenario where a person had just received their first paycheck after graduating from college and was presented with several options on how to spend or invest that money.
The first option is to spend it on “any stupid thing”, the second is to save it in a traditional bank, and the third is to “learn to invest” in Bitcoin, he described. The owner of TV Azteca and retailer Grupo Elektra endorsed BTC through his tweets, stating that it was much easier to buy and store the cryptocurrency as there was no minimum amount required to start investing in it.
Billionaire Lists Four Reasons Why Everyone Should Invest In Bitcoin
The billionaire then went on to detail four reasons why investors should consider Bitcoin as an investment. Firstly, he highlighted the digital asset’s long-term growth potential by specifying the investment horizon of ten or more years that it has.
“Investing in Bitcoin is like betting on a new promising company in its early stage,” said Salinas. He explained that although “volatile and risky”, the leading cryptocurrency has displayed tremendous growth since its inception in 2009, even outperforming many other types of investments in terms of returns.
He said investing in Bitcoin was an opportunity to be a part of an emerging technology that has the potential to “redefine the global financial system”.
Salinas’s second reason to invest in Bitcoin is its accessibility and liquidity. When compared to traditional investments like real estate or certain other funds that require a long-term commitment and are difficult to liquidate, BTC can be bought and sold in almost any amount instantly via exchanges.
“This offers flexibility and access to your funds when you need them,” he emphasized. However, he warned that this also means that it is easy for the crypto token to react impulsively to market fluctuations.
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Never Put All Your Eggs In The Same Basket
His third reason, diversification of the investment portfolio, is a lesson explaining the importance of not putting all the eggs in the same basket.
The 69-year-old noted that investing in Bitcoin can be a simple and quick way to “diversify your investments”, before adding that cryptocurrencies don’t often follow the same trends as the stock or bond markets. Meaning it can be a good way to reduce risk, Salinas added.
Bitcoin Helps Protect Investors’ Wealth And Is A Hedge Against Inflation and Currency Devaluation
The last reason Salinas pointed out was Bitcoin’s ability to protect investors against the “governments’ nonsense”, such as inflation and currency devaluation.
He opined that with concerns about inflation and fiat currency devaluation doing rounds, Bitcoin presents itself as an alternative with a limited supply, which is in stark contrast to traditional fiat currencies that are printed indefinitely by governments, a process that results in their value-reducing over time.
While he whole-heartedly recommends investing in Bitcoin, he cautioned investors of the crypto market’s inherent risks, including volatility in the short term and regulatory uncertainties.
He concluded his views by offering a tip to investors on how to capitalize on potential price increases for BTC in the long term. He asked his followers to learn to be patient and not get scared when the price of Bitcoin goes down to rush and buy, and not get overly excited when its price goes up to sell their gains.
At the time of writing, Bitcoin (BTC) is trading at $52,111 – up 0.1% in the last 24 hours.
