A bonfire with fiats fueling the pyre: only millionaires and billionaires would be aware of the true value of fiats? Institutional investors and large fortunes are increasingly flocking to Bitcoin (BTC).
Fiats in the trash
The 2nd fortune of Mexico, Ricardo Salinas Pliego, revealed that his investment portfolio included Bitcoins.
In a tweet on November 18, 2020, the billionaire shared a video showing banknotes thrown in trash bags: some suggest it could be denominations of 10,000 Venezuelan bolivars issued between 2016 and 2017 before the country re-denomination of its currency when the economy was hit by hyperinflation.
Pliego asserts that paper money has no value; it is therefore necessary to diversify its investments.
The billionaire continued with praise of the Bitcoin, explaining that it was a choice alternative protecting its holder from any attempts at expropriation or manipulation by a central government.
Queue at the Bitcoin Gate
Another tweet from Pliego published a few hours later recommended the book ” The Bitcoin Standard And revealed that 10% of his portfolio was denominated in Bitcoin.
The remaining 90% would be invested in precious metals. It is impossible to assess with certainty the exact amount of his portfolio, but it is very likely that this percentage of 10% represents several million dollars.
Cryptophiles obviously liked this tweet: one of the executive officers of Kraken, Dan Held, indicated that institutional investors were jostling each other at the entrance of the market like a herd.
Pliego responded by saying that the interest of institutional investors in Bitcoin has been progressing steadily since the launch of Grayscale’s Bitcoin Investment Trust in 2016.
Pliego is the founder and president of Grupo Salinas and today would be 166th global fortune.
Bitcoin is trading at $ 18,150 as of this writing. What factors would most convince the most reluctant institutional investors to buy Bitcoins? A BTC hitting new ATH or a sharp devaluation of the dollar? BTC now needs to break through the last resistance zone at the $ 18,500 level for the bulls to run towards the $ 20,000. Institutional investors have every interest in getting into the BTC buying race as early as possible before MicroStrategy and Grayscale devour most of the offers in circulation.
Litecoin, welcome in the Silver Age