Mexico's billionaire invests in Bitcoin

[Coyster]

This is a big news for Bitcoin, the second richest man in Mexico has just revealed that he invested 10% of his "liquid portfolio" in Bitcoin, the article doesn't categorically state exactly when, he could prolly be a long time investor, but nonetheless, the news is good for adoption and makes Bitcoin more alluring to investors when prominent individuals or corporations join the network. Even as fiat currencies and traditional institutions/economy continually plunges due to inflation and effects of covid-19, Bitcoin is on the road to cross it's ath, which shows btc rising strength and efficacy as a reliable investment and reserve asset. See this excerpt, and what the billionaire has to say about fiat currencies:

The billionaire shared a video captured in “a Latin country” depicting banks throwing out garbage bags filled with paper money into a dumpster. He asserted that “paper money is worth nothing,” adding: “That is why it is always good to diversify our investment portfolio.”

From the above, the 166th richest individual in the world, believes fiat currencies are constantly devaluing and I agree with that, saving money in the bank/holding fiat now feels wrong to quite a lot of people, and I think this will affect the economy negatively; so what do you think will be the foreseeable effect on the economy if a lot of people, both the wealthy, middle class, poor and even companies choose to invest a larger chunk of their funds in Bitcoin and other assets (that aren't controlled by the government), rather than keeping their funds in the bank/traditional institutions?

See the news/article: https://cointelegraph.com/news/mexico-s-second-richest-man-invests-10-of-his-liquid-portfolio-in-bitcoin

[Lucius]

What about the richest Mexican and also the 5 richest man in the world Carlos Slim, is he perhaps interested in Bitcoin?

Ricardo Salinas Pliego net worth is $11.7 billion, so 10% invested in BTC represents a really decent amount, and the trend from North America seems to be slowly spreading south as well. If billionaires continue to invest only 5-10% of their wealth in BTC, it will significantly affect the price (positively), and also the market, which will find it increasingly difficult to meet their needs.

[Chrystora123]

One advantage of those who are rich is the domino effect which is likely to occur when they declare hot things.  I really believe that Pliego's statement will make many other rich people start to be interested in Bitcoin.  it is very likely that Bitcoin will pass $ 20k before the end of the year, this is really beautiful news..

[Haunebu]

I think majority of his investment is black money though this is just an assumption. Either way, this is good for BTC adoption overall. However, I think he would recover his investment the moment the markets bleed later on.

He is probably experiencing FOMO just like many other traders right now. I feel like the price might settle closer to $13K-$15K in the coming months organically.

[stompix]

Ricardo Salinas Pliego net worth is $11.7 billion, so 10% invested in BTC represents a really decent amount,

Yeah, but that's 10% of his "liquid portfolio" portfolio, not of his wealth.
It's safe to assume that is far less than 5% of his entire wealth, just his shares in one of his companies are valued at 9,6 billion out of those 11.7 with shares in Tv Azteca making another billion.  So we're looking at some measly tens of millions  
Anyhow, nice to see gold bugs starting to turn around, I can't wait for Peter Schiff to finally admit he knows shit about bitcoin, not just he was somewhat wrong.

The billionaire also noted that the remaining 90% of his liquid portfolio is invested “in precious metals miners.”

90% more to go  

[(o)(o)ilikeboobs(o)(o)]

10% of the $ 117 billion invested in Bitcoin is too big, and it could spur other billionaires into Bitcoin as well as crypto. It can be seen that this year many individuals and financial institutions have poured money into Bitcoin. I am imagining that the value of Bitcoin next year will fall between 30-50 thousand dollars. My question is when individuals and organizations have invested in profit-taking, where does the value of Bitcoin go. Maybe we need more liquidity for Bitcoin to avoid a sell-off from these people.

[disconnectme]

What I can say about this recent rally is that it is being driven by the big guys, these guys just need to look for a sure way to get good value for their investment, investing between 1-10% of your portfolio worth the risk, high risk, high reward and I think most of these Billionaire would start taken Bitcoin serious as a good Store of Value

[oHnK]

Maybe this news is just a fragment of the many people who are not covered by the media or are investing in bitcoin on the sly.  However, this is also a form of proof of the existence of bitcoin that is increasingly recognized for liquid assets.  It doesn't matter how big the investment is small or big, the most important thing is that the richest person on mexico has publicly allocated a portion of his portfolio to Bitcoin.  I'm sure there are still a lot of people out there who save bitcoin for large amounts of investment but don't just get exposed.

[mu_enrico]

There are two lessons here:

First, land, buildings, etc., are fixed/illiquid assets, and it usually has the largest proportion of one's wealth.
Second, diversification is good, and Bitcoin is a form of money. So we can use Bitcoin to construct a portfolio of liquid assets (money or near money).

My guess, it was his "gambling money" since the amount is less than 10% of his net worth. But, it is still good for adoption though.

[Darkoth89]

Even though it might be just his "gambling money" and that in his mind he's already written that off, it's still a great signal for others. Bitcoin must get rid of its reputation as an obscure internet-money, only used by a small community online and finally be recognized as a real asset and means of payment. And such news help a lot imo.

[Silberman]

10% of the $ 117 billion invested in Bitcoin is too big, and it could spur other billionaires into Bitcoin as well as crypto. It can be seen that this year many individuals and financial institutions have poured money into Bitcoin. I am imagining that the value of Bitcoin next year will fall between 30-50 thousand dollars. My question is when individuals and organizations have invested in profit-taking, where does the value of Bitcoin go. Maybe we need more liquidity for Bitcoin to avoid a sell-off from these people.

Not really, we have no idea of how much he invested in bitcoin since he only invested 10% of his liquid portfolio not 10% of his wealth, but despite all of it this is good news, every day we are seeing news of rich people that are now open about their investments in bitcoin and that should not be surprising at all, you don't get to have that much money and power by not being intelligent yourself, rich people are seeing that governments are printing money at very fast pace and such a thing regardless of their power cannot be sustained long term, and being as smart as they are they will try to find a way to counter this and it seems they see in bitcoin at least a decent option to put a part of their wealth.

[Twentyonepaylots]

I'm not surprised by these kind of news anymore, it feels like it will inevitably happen as bitcoin continues to soar high people will continue to recognize it as whatever they want to interpret it themselves, whether a currency or investment. I do think the paypal's crypto integration is a factor why people are diving into bitcoin, putting all in to get the ride of new potential ATH this year. Thus, a billionaire buying bitcoin will push some people too. Win-win!

[cabron]

They are coming to crypto, they all notice how resilient cryptocurrency when all are falling apart but this seeing economy will make them more money.
He recognized the institutional adoption citing Grayscale’s Bitcoin Investment, this is really what makes them trust BTC. They are likely going to send more money into crypto than on their banks because they have more control over it. 

[deisik]

Even as fiat currencies and traditional institutions/economy continually plunges due to inflation and effects of covid-19, Bitcoin is on the road to cross it's ath, which shows btc rising strength and efficacy as a reliable investment and reserve asset. See this excerpt, and what the billionaire has to say about fiat currencies:

The billionaire shared a video captured in “a Latin country” depicting banks throwing out garbage bags filled with paper money into a dumpster. He asserted that “paper money is worth nothing,” adding: “That is why it is always good to diversify our investment portfolio.”

When I read such things, I feel revenged (well, sort of)

The point is, not so long ago I posted an article about the confluence of a number of factors which is required for cryptocurrencies to succeed (here's the link, for your reading pleasure). There I posited that we need fiat currencies to devalue massively across the board in order to turn crypto into an attractive payment option. This is not the only factor (read the article), but it is one of the required ones, and things are certainly evolving in that direction. Some posters strongly disagreed with my train of thought, and I'm curious if they still do

[samcrypto]

I wonder if this is his first time to invest on bitcoin or he already know Bitcoin while its on dumped price before because he can probably make a lot of money if he did invest on Bitcoin months ago. Anyway, as long as there’s a new money coming into Bitcoin this is great for the market I just don’t know if its come from a blackmarket or bought Bitcoin on purpose, this can still help bitcoin to go further.

[The Sceptical Chymist]

My guess, it was his "gambling money" since the amount is less than 10% of his net worth. But, it is still good for adoption though.

That's the first thing I thought when the article mentioned his "liquid portfolio".  To me, that basically means cash that he hasn't found anything worth investing it in--until now, when bitcoin caught his eye. 

I don't know how bullish this is for bitcoin in general, but I think it's kind of cool that people who are presumably smart with money (and have tons of it) are investing in it.  That's definitely a big step toward mainstream acceptance of bitcoin (and maybe some other cryptos as well, who knows).  The one thing that worries me a little bit is the potential of a lot of bitcoin being dumped on the market if these big investors decide to sell at or near the same time, like if a panic happened.  That could sink the price tremendously.

[Baofeng]

I wonder if this is his first time to invest on bitcoin or he already know Bitcoin while its on dumped price before because he can probably make a lot of money if he did invest on Bitcoin months ago. Anyway, as long as there’s a new money coming into Bitcoin this is great for the market I just don’t know if its come from a blackmarket or bought Bitcoin on purpose, this can still help bitcoin to go further.

We can assume that this is the first time he invested on bitcoin. These rich guy would rather invest on stable portfolios of stocks or precious metals and properties instead of a very volatile asset like bitcoin. And as others have pointed out, the keyword here is liquid assets not his wealth, so probably in the millions. Just funny that every media is now snooping around finding who's the next millionaire or billionaire no-coiner who suddenly shifts their attention to bitcoin. Might put a weight though is someone big from the 'gold bugs' will go on public and says he/she moves to bitcoin.

[stompix]

The one thing that worries me a little bit is the potential of a lot of bitcoin being dumped on the market if these big investors decide to sell at or near the same time, like if a panic happened.  That could sink the price tremendously.

I'm actually happier now knowing that huge amounts of coins are owned by people with a face and a name and involved in hundred of business or investment funds that have at least some kind of information compare to what the market looked 6-7 years ago when unknown whales could dump hundreds of coins on the market just because they felt like or they tried to manipulate it. It is way less conceivable for them to dump it to the ground, and far riskier to form a cartel and try to manipulate the price.

No matter what people say I would sleep better knowing 5% of the coins are held by the Rothschild family than 10% being owned by Roger Ve

There are two lessons here:
First, land, buildings, etc., are fixed/illiquid assets, and it usually has the largest proportion of one's wealth.

In most cases of the people in the top richest the largest portion of their wealth is the shares in the company they founded or bought.
For example in Bezos's case out of 185 billions 175 are in amazon shares. Same case here.

[Dragonfund]

There are prominent investors that have been on this space and have been doing cost average ever since bitcoin collapsed and will continue to do so until they accumulate some percentage and be the leader. Take a look at Goldman Sachs how they have been accumulating bitcoin because they believe it will surge to a million in the next 5 years. While I believe their theoretical knowledge and mind towards bitcoin is to grow, more people have started to live to more expectations about bitcoin.
Banks were on the verge of stopping bitcoin transactions in my country, they continued to threatened and suspend accounts that has transactions details with BTC but today, almost all managers and banks workers have a share of their own wallet with Btc. It may takes years but Bitcoin will always be the top of the game and hedge against traditional financial instruments and inflation.

[TheGreatPython]

I always feel like there are already lots of billionaires that are investing their money in Bitcoin but they are not being open about it, they just want to keep it a secret, and mind their business. It’s not everyone that wants to be letting the world know about every move they make, some people prefer privacy in most of the things they do.

Just as you said, it can be possible that this Mexican billionaire has been investing in Bitcoin for a long time and just decided to open up now. Same way that there are others that will be investing. People who follow him and look up to him will also follow the same footstep now and invest their money in Bitcoin.