[2020-11-18]Mexico’s 2nd Richest Man Reveals 10% of His Liquid Assets Are in BTC

[Karartma1]

Remember the dissapointment of the first day with volume of several bitcoins? Well, this escalated quite fast to the levels of the biggest exchanges! And this is still unnoticed among the other 'hot' news about defi and microshares. Defi is having currently around 100 000BTC locked into smart contracts and rising of course. More and more serious investors and companies are accumulating bitcoins causing a shortage on the spot exchanges. Good times are coming and the bears know it! Of course they will fight desperately between 10K and 20K to be able to buy cheap coins as long as possible. But when the ATH is breached, the real FOMO will start. Then the SEC morons like Jay Clayton will realise that invetstors do not need their approval to invest in Bitcoin. The obstacles they've built are not applied for Bitcoin.

Mexican billionaire Ricardo Salinas Pliego just declared 10% of his portfolio is now tied up in bitcoin.

Announced in a tweet on Wednesday, Mexico’s second-wealthiest man responded to questions that “many people” ask him about bitcoin (BTC, +2.20%), saying: “YES. I have 10% of my liquid portfolio invested.”

“Bitcoin protects the citizen from government expropriation,” Pliego added as he recommended “El Patron Bitcoin” – a book that is “the best and most important to understand #Bitcoin.”

Source https://www.coindesk.com/mexican-billionaire-bitcoin-portfolio

They are coming for your bitcoin, are you willing to concede and waste your treasure below anything less than we can possibly make?
Preserving/increasing wealth is a job in itself that requires skills and dedication, otherwise easy comes easy goes.
That being said, I don't think the average OG Hodler would easily fall into the above mistakes. (quoting bitserve)
Hold

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[cr1776]

Remember the dissapointment of the first day with volume of several bitcoins? Well, this escalated quite fast to the levels of the biggest exchanges! And this is still unnoticed among the other 'hot' news about defi and microshares. Defi is having currently around 100 000BTC locked into smart contracts and rising of course. More and more serious investors and companies are accumulating bitcoins causing a shortage on the spot exchanges. Good times are coming and the bears know it! Of course they will fight desperately between 10K and 20K to be able to buy cheap coins as long as possible. But when the ATH is breached, the real FOMO will start. Then the SEC morons like Jay Clayton will realise that invetstors do not need their approval to invest in Bitcoin. The obstacles they've built are not applied for Bitcoin.

...
“Bitcoin protects the citizen from government expropriation,” Pliego added as he recommended “El Patron Bitcoin” – a book that is “the best and most important to understand #Bitcoin.”
...

He hit the nail on the head...protection from government expropriation is one of a large number of uses. 

[bryant.coleman]

The emphasis should be on the term "liquid". For billionaires, liquid assets normally represent less than 1% of their total wealth. The remainder is mostly in immovable or other non-liquid assets such as real estate, bullion and mutual funds. So even if we take the upper range, that would mean that only around 0.1% of his portfolio is made up of Bitcoin. All that said, the publicity will be beneficial for BTC.

[sunsilk]

Yeah, the government can't take your bitcoin and they wouldn't even know that you own a bitcoin unless you have disclosed it on the public or told anyone that has exposed it latter.

All that said, the publicity will be beneficial for BTC.

Yep, billionaires, millionaires, financial experts, institutions and every single personality that has a huge engagement and followers always give the publicity for bitcoin and it's free.

[Karartma1]

One thing is for real: there are not enough full bitcoins for everyone here. These billionaires will go crazy when the market will run out of coins! And the laughable thing will be that they will not understand why they can't buy more! Don't sell all of your coins even when we get past the old ATH. As 600watt wrote on the Wall Observer they have unlimited fiat, we have limited coins 

be careful. this next bull is not retail driven with fiat in mind. it is driven by institutional investors. their motivation is not fiat. they drown in fiat, that is not the point. their point is to invest in something that protects against a fiat meltdown. they don't invest to make more fiat, they invest to fucking escape fiat. they invest to hedge against fiat. for them, there is no top to sell btc for even more fiat. they will hold their corn.

[Sithara007]

Yeah, the government can't take your bitcoin and they wouldn't even know that you own a bitcoin unless you have disclosed it on the public or told anyone that has exposed it latter.

Well... rules are changing. Almost all the Bitcoin exchanges ask for KYC, if you go above a certain threshold. Peer-to-peer exchanges represent a viable option, but the governments are cracking down on them as well. And I have a feeling that with every passing month, it is getting harder to stay anonymous with cryptocurrency. And when the exchange rates rise, it will obviously attract unwanted attention from the authorities.

[cr1776]

One thing is for real: there are not enough full bitcoins for everyone here. These billionaires will go crazy when the market will run out of coins! And the laughable thing will be that they will not understand why they can't buy more! Don't sell all of your coins even when we get past the old ATH. As 600watt wrote on the Wall Observer they have unlimited fiat, we have limited coins  

be careful. this next bull is not retail driven with fiat in mind. it is driven by institutional investors. their motivation is not fiat. they drown in fiat, that is not the point. their point is to invest in something that protects against a fiat meltdown. they don't invest to make more fiat, they invest to fucking escape fiat. they invest to hedge against fiat. for them, there is no top to sell btc for even more fiat. they will hold their corn.

Great point re investing to escape fiat.  It is like homeowners insurance which might cost you 0.25% to 0.50% per year.  You can buy permanent insurance against authoritarians (socialist, fascist, communist, totalitarians etc) for whatever you want to spend. 1%, 5%, 10% and it is a one time cost. Plus until equilibrium is reached, maybe 7 or so USD figures, you get the appreciation factor.  Plus you get the cross border capital controls protection, plus inflation protection.  

It almost sounds like an infomercial. "Act now, and you won't just get insurance against authoritarians, but inflation protection too.  As an added bonus we'll thrown in appreciation, and capital control protection."

Upper six, lower seven USD figures might get me to sell some, but not much. The fewer people willing to sell at the low price now, the quicker it will reach equilibrium.  Another 1.5-2 orders of magnitude from here.

[Harlot]

They are coming for your bitcoin, are you willing to concede and waste your treasure below anything less than we can possibly make?
Preserving/increasing wealth is a job in itself that requires skills and dedication, otherwise easy comes easy goes.
That being said, I don't think the average OG Hodler would easily fall into the above mistakes. (quoting bitserve)
Hold

Only a few rich people have this mindset with regards to Bitcoin so I don't think they are all in on it, however can you imagine how it will be when the time comes that a lot of billionaires will change their views towards Bitcoin? I can possibly see a price surge happening because of it since now we have news kinds of whales suddenly panicking to buy more and more Bitcoin in their portfolio. The downside ofcourse is them having a big control or influence in the market where they can short or go FOMO anytime.

[Sithara007]

Only a few rich people have this mindset with regards to Bitcoin so I don't think they are all in on it, however can you imagine how it will be when the time comes that a lot of billionaires will change their views towards Bitcoin? I can possibly see a price surge happening because of it since now we have news kinds of whales suddenly panicking to buy more and more Bitcoin in their portfolio. The downside ofcourse is them having a big control or influence in the market where they can short or go FOMO anytime.

Bitcoin is perhaps the most liquid asset available right now and therefore you can expect extreme volatility in the near future, which results from panic selling and shorting. Now this is something that we need to accept, along with the influx of funds from the institutional investors. Some of them may be in for the long term, but I suspect the majority would like to make a quick buck and then exit.

[Karartma1]

I see no problems here, let these millionaires come to the king of assets. It's a nice to have problem if you ask me. You are right, there could be volatility, there could be a supply shock but who cares: if you have bitcoin hold on to them. Remember they have unlimited useless fiat while you own very limited coins.

[Harlot]

Only a few rich people have this mindset with regards to Bitcoin so I don't think they are all in on it, however can you imagine how it will be when the time comes that a lot of billionaires will change their views towards Bitcoin? I can possibly see a price surge happening because of it since now we have news kinds of whales suddenly panicking to buy more and more Bitcoin in their portfolio. The downside ofcourse is them having a big control or influence in the market where they can short or go FOMO anytime.

Bitcoin is perhaps the most liquid asset available right now and therefore you can expect extreme volatility in the near future, which results from panic selling and shorting. Now this is something that we need to accept, along with the influx of funds from the institutional investors. Some of them may be in for the long term, but I suspect the majority would like to make a quick buck and then exit.

Nope, Bitcoin isn't the most liquid asset out there and that is for all kinds of assets not labelled as fiat currencies, this includes stocks and mutual funds since they aren't in a liquid form. When we say liquid asset we are talking about assets that are acceptable for what it is as a mode of payment and as of right now fiat currencies are still the most accepted mode of payment out there. But you are right to say that they are not here in the long haul since companies like this one always likes to adop and open up their options just to maximize their profit.

[bryant.coleman]

Nope, Bitcoin isn't the most liquid asset out there and that is for all kinds of assets not labelled as fiat currencies, this includes stocks and mutual funds since they aren't in a liquid form. When we say liquid asset we are talking about assets that are acceptable for what it is as a mode of payment and as of right now fiat currencies are still the most accepted mode of payment out there. But you are right to say that they are not here in the long haul since companies like this one always likes to adop and open up their options just to maximize their profit.

I agree. Going by this definition, Bitcoin is not a completely liquid asset. Similar to bullion or stocks, we need to convert Bitcoin to fiat first, before it can be used for making payments. But then, we need to look at the ease of converting Bitcoin to fiat. Nowadays, the obstacles have been removed and it is relatively easy to do this. On the other hand, if you want to sell stocks, then you need a demat account, go through all sorts of KYC documentation and then select a particular stock exchange which will operate only for a specified period.