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Bitcoin Whales Take Advantage Of Market Crash To Gobble Up Millions In BTC

The bitcoin crash rocked the market to its core when the digital asset had lost over 50% of its all-time high value to bottom out at $33,000. It was as a result of market sell-offs across the financial space, sparking a ripple effect that was felt heavily in the crypto market. Market sentiment had crumbled during this time as investors had scrambled to sell their holdings.

However, not everyone saw the declining prices as a signal to sell before prices tank even more. Whales, who control a large portion of the circulating supply, took this as a cue to buy and have been filling their bags with all of the bitcoin being dumped on the market by panicking investors.

Whale Gobbles Up Traded Bitcoin

In a report from CC15Capital, the trading activities of a whale are outlined. In what came out to be a long document, it shows that the whale had been purchasing tens of thousands of bitcoin every few hours while traders dumped their coins. CC15Capital which is an asset allocator tracked the wallet and discovered that a single bitcoin wallet had been purchasing millions of dollars worth of bitcoin.

Related Reading | Market Sentiment Crumbles As Sell-Offs Drags Bitcoin To $33,000

In the event of the past week’s price crash, this single whale had accumulated millions in bitcoin. Each purchase ranged from $2 to $18 million worth of BTC every few hours, averaging 48,000 BTC per purchase.

It looked like the whale was buying up all coins being dumped on the market. By the weekend, the wallet had successfully increased its holdings by a couple of hundred thousand BTC. The more the price dropped, the more bitcoin the whale bought.

BTC trading above $36k | Source: BTCUSD on TradingView.com

CC15Capital, in response, called for bitcoin investors to stop dumping their coins, which are being bought by whales, thereby increasing the concentration of bitcoin supply in the hands of large investors.

Stop panic selling your #Bitcoin to this guy. He’s been buying $2-18 million worth every few hours. pic.twitter.com/eCE3UKXEfD

— CC15Capital (@Capital15C) January 24, 2022

Tradable BTC On The Decline

CC15Capital also noted that the volume of bitcoin that is available for sale has gone down. Currently, 14.5 million of the total bitcoin supply is illiquid. This means that this supply has not moved, neither have they been traded. It is the highest concentration of supply which looks to be held for the long-term.

In the same tweet, the asset allocator explains that if the wallets holding this illiquid supply were to increase their holdings by a mere 27%, a total of 4 million BTC, there would be no coins left for sale, driving the supply to zero.

#Bitcoin illiquid supply (not traded) is at 14.5 million.

If those who #HODL the 14.5 million Bitcoin, would increase their holdings by 27%, or 4 million $BTC, there would be exactly 0 remaining coins available for sale.

Keep buying and HODL. Law of supply/demand will prevail. pic.twitter.com/RUb6gHSif6

— CC15Capital (@Capital15C) January 24, 2022

Related Reading | Has Bitcoin Reached Its Bottom? Analyst Says It Still Has A Long Way To Go

Other whales have also taken advantage of the sell-offs happening in the market. As the exchange supply is dwindling, these large investors are making sure there is no shortage on their end when a supply squeeze happens.

This is how you buy $1 Billion in #Bitcoin in 2 months.

From $0 in November 2021 to over $1 Billion now.

When you panic sell your $BTC, this is one of the guys buying it.

Buy, #DCA and #HODL. pic.twitter.com/fmjpCFjCEI

— CC15Capital (@Capital15C) January 25, 2022

In two months, a whale wallet that had zero BTC in November has managed to gather an impressthatalance of over $1 billion in BTC. This account looks to have started buying with the crash and has continued to do so ever since. At the time of writing, the wallet balance sits at $1,013,777,643.51.

Featured image from TokeneoBit, chart from TradingView.com

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I Only Hold 1 Bitcoin, Real Vision CEO Raoul Pal Reveals

Millionaire investor Raoul Pal has revealed how much he owns of bitcoin, a cryptocurrency that he has been known to actively promote in the past. In what was a shocking revelation, the CEO and founder of Real Vision posted his bitcoin holdings on Twitter, which turned out to be lower than everyone’s expectations. Pal disclosed that he only owned a measly 1 bitcoin.

Why Does Raoul Pal Only Own 1 Bitcoin?

The CEO got into a heated Twitter argument with Greg Foss after Foss insulted Pal. In a response to another user who defended the CEO saying they liked him, Foss explained that he was “just calling out the BS.” This is where Pal came into the conversation demanding to know what exactly it was that Foss was accusing him of as he’d like to know.

Related Reading | Bitcoin Millionaires Are Flocking To This North American Tax Haven. But What Do The Locals Think?

Foss continued on to explain that he did not agree with Pal promoting his trading mechanism to other traders who were less inclined to understand how it worked, pointing towards bond math. Pal however disagreed with Foss’s assessment, stating that he did not hold his views on bonds as a philosophy, rather just a mechanism which he uses to trade.

The argument continued on, eventually culminating in Pal stating how much bitcoin he owned, which it turns out is a single bitcoin. The founder and CEO of Real Vision explained that it was because of the bitcoin community’s approach to inclusion that led to this decision. Pal lamented the exclusion of others from the space who happen to share a different viewpoint from the accepted majority.

BTC price recovers above $43,000 | Source: BTCUSD on TradingView.com

“This is why I hold only one bitcoin, the community has lost sight of inclusion and you sir, are helping reduce the network effects by excluding people who don’t share your view from the network,” said the CEO.

It eventually ended with Greg Foss conceding and acknowledging he was wrong to have attacked Pal in the first place. In a separate tweet, Foss tendered an apology to the CEO, stating that he regretted his actions.

Some times you pick a fight with the captain of the opposing team (cuz u are fed up and want to brawl)

That is rarely a smart move.

Tonite I chose that path and I regret my actions.

I apologize to @RaoulGMI

I made a rookie error. We have bigger battles to fight.

GF

— Greg Foss 🇨🇦 (@FossGregfoss) January 20, 2022

Not Completely Out From Crypto

Despite his views on the bitcoin community, Raoul Pal has not entirely ruled crypto. Even bitcoin has not been completely ruled out as evidenced by his tweet stating that he does own one BTC. However, Pal has moved on to other things in the crypto space. Given his comments not too long ago, the CEO is now more bullish on ethereum compared to bitcoin.

Related Reading | Bitcoin Implied Volatility Plummets To Pre-Bull Market Levels: What This Means

Pal noted back in November that he expected ethereum to continue to outperform bitcoin given its performance in previous months. The millionaire investor still holds a well-rounded bullish view on bitcoin but expects ethereum to be the better investment of the two going forward.

A month before this, Pal had received that he made the biggest personal position of his life in ethereum. He explained that he is long the digital asset which he placed at the $20,000 mark by the second quarter of 2022, less than six months away from now.

Featured image from iGaming.org, chart from TradingView.com

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American Rapper Lil Baby On Holding Bitcoin And Ethereum Over Fiat

For years now, some investors have preferred to hold their wealth in cryptocurrencies like bitcoin and ethereum as opposed to cash. As cryptocurrencies become more popular, this school of thought has become more widely shared to the point where even billionaires and celebrities have publicly come out to say that they would rather hold their wealth in digital assets rather than fiat.

One of the latest celebrities to profess their support for bitcoin and ethereum is American rapper, Lil Baby. The rapper who rose to prominence in the last couple of years has said that he would rather hold his wealth in cryptocurrencies such as bitcoin and ethereum as opposed to holding cash.

Lil Baby Wants His Money In Bitcoin And Ethereum

American rapper Lil Baby was shopping on Icebox when he was asked about where he puts his money. The rapper is known to be a regular at the luxury jeweler with a running internet joke that people will “run into Lil Baby” when they visit the jeweler.

Related Reading | What’s In Store For MicroStrategy Going Forward? CEO Michael Saylor Reveals

While shopping, the rapper expressed his displeasure with cash. When asked what he would prefer to cash, Lil Baby explained that he would rather have all of his money in bitcoin and ethereum, the top 2 cryptocurrencies currently in the space.

Pointing to the bag of cash he brought with him to purchase jewelry, he said that was the last bit of cash he had. The rapper is known to drop thousands of dollars at a time for some ‘iced out’ jewelry, which has grown to be somewhat of a status symbol among famous people.

BTC trading at $41K | Source: BTCUSD on TradingView.com

Lil Baby also expressed his interest in the metaverse. He told the attendant that he didn’t live in the real world, living instead in the metaverse. As for cash, he said that he wasn’t carrying any more cash, stating “I ain’t walking around with cash no more.”

Celebrities Dive Into Cryptocurrencies

Lil Baby is not the first to show support for cryptocurrencies such as bitcoin and ethereum. Some might even say he’s a little late to the game. 50 Cent made headlines in the 2017/2018 bull market when he revealed that he had found 700 bitcoins generated from album sales which were then worth millions.

Related Reading | Altcoins Are Encroaching On Bitcoin’s Dominance On Digital Payments

Rapper Busta Rhymes showed interest in the market last year during the peak of the Dogecoin hype. After what seemed to be a rollercoaster of a learning curve, he had finally settled on investing in bitcoin, later revealing his intention to charge bitcoin for future deals.

Hip Hop star Megan Thee Stallion teamed up in August with Cash App to educate fans on cryptocurrencies. The partnership involved video tailored towards her fanbase, as well as a $1 million in bitcoin giveaway on the app.

Featured image from XXL Mag, chart from TradingView.com

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What’s In Store For MicroStrategy Going Forward? CEO Michael Saylor Reveals

MicroStrategy has been topping its bitcoin holdings in the last year and is now the public company with the largest bitcoin holdings in the world. Presently, the firm holds over 124K BTC on its balance sheet, worth over $5 billion, remaining in profit despite the recent downtrend. However, with such a large holding, one tends to wonder what the company plans to do with the digital asset in the future.

Bitcoin Is Unstoppable

MicroStrategy CEO Michael Saylor was on CNBC to talk about the future of the firm which had made a name for itself due to its various bitcoin buys. Saylor who is a big proponent of the digital asset and a BTC maximalist talked about what the firm had planned for the future, as well as what it planned to do with its bitcoin holdings going forward.

Related Reading | Bitcoin Is Massively Overvalued, Billionaire ’Bond King’ Jeff Gundlach

The CEO starts out by explaining that he remains a strong supporter of bitcoin, which he refers to as “compelling and unstoppable.” This has previously been highlighted at various times by Saylor with his public support for the digital asset. At every possible moment, the CEO has said that bitcoin is the answer to major problems like inflation and is the leading digital property.

On the topic of regulation, Saylor explains that he believes that regulation would, in the end, be beneficial for the digital asset. “The regulatory clarity is going to accelerate institutional adoption of bitcoin and you’re going to see large flows of capital enter the asset class as this continues,” the CEO said.

BTC trending at $43K | Source: BTCUSD on TradingView.com
What MicroStrategy Has Planned For The Future

As for MicroStrategy’s plan for the future, the CEO explained that the company will continue to operate as it always has. The company which sells enterprise software has been very profitable so far. With its bitcoin plan, it has seen an uptick in profitability and its stock is up by a factor of four, according to Saylor.

Related Reading | Why Sovereign Nation States May Begin Acquiring Bitcoin In 2022

“Look, our long term strategy is kind of like Harvard University. We’re running a university but we have an endowment. MicroStrategy is selling enterprise software. We generate $100 million in cash flow a year – in a good year – and we are reinvesting that cash in our endowment. Our endowment is 100% bitcoin.”

Saylor adds that MicroStrategy plans to acquire and hold bitcoin as a balance sheet. As for the operations, the company will continue to sell its enterprise software everywhere in the world.

Featured image from CoinDesk, chart from TradingView.com

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Why Sovereign Nation States May Begin Acquiring Bitcoin In 2022

Bitcoin has grown from being ‘internet money’ used by only a few thousand people during its first few years to being part of the balance sheets of big companies and sovereign states. El Salvador is a case in point for a country that has committed fully to the bitcoin mission, putting millions of dollars into the digital asset as a national reserve.

While bitcoin is still a long way from being the de facto reserve currency of all countries, its growth points to countries not being able to ignore it for much longer. That’s why it is expected that more nation-states will purchase the cryptocurrency in the next year.

Fidelity On Why Countries Will Purchase Bitcoin

In a recent report published by Fidelity, it goes into depth about bitcoin and the role it may play in deciding which countries are the economic leaders of the world. This is because as the asset becomes more widely spread as a reserve currency, the countries who hold bitcoin may see their influence grow higher than those who do not, despite where they might stand today.

Related Reading | Jack Dorsey Launches Bitcoin Defense Fund To Aid Devs Facing Litigation

History has always shown that those who are quick to accept innovation and new technology have always ended up faring better compared to those who do not, and that may well be the case with bitcoin and other cryptocurrencies.

Fidelity also refers to it as a “very high stakes game theory.” If bitcoin adoption continues to grow, then those who got in earlier will no doubt be better off than the rest. This will push other countries to also acquire the digital asset as “insurance” so as to not be left behind even if they do not believe in the investment thesis or the adoption of the digital asset.

Basically, sovereign nation-states would purchase bitcoin sort of as a hedge, in case it does end up being important in the future. “In other words, a small cost can be paid today as a hedge compared to a potentially much larger cost years in the future.”

A Total Ban Will Be Difficult

Touching on the ban debate that has raged on in the space, the report explained that banning bitcoin outright would be hard to achieve. Although not impossible, it could certainly lead to a significant loss of wealth and opportunity, it added.

Related Reading | Highlighting Risk: These Crypto Coins Carry The Most Leverage

There is yet to be an all-encompassing bill passed in regards to cryptocurrencies which provides total regulatory clarity. The infrastructure bill which was passed last year and scheduled to go into effect in 2024 continues to be subjected to numerous amendments, and with such a long time frame till implementation, there is no telling where the bill might end up.

However, Fidelity noted in its report that a digital asset regulation being passed into law will be a milestone for bitcoin, stating that “what we think is most notable is that digital asset regulation becoming law is another milestone as the asset class comes of age and establishes itself.”

BTC trending above $43K | Source: BTCUSD on TradingView.com
Featured image from Bitcoin News, chart from TradingView.com

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Bitcoin Is Massively Overvalued, Billionaire ’Bond King’ Jeff Gundlach

Billionaire Jeff Gundlach has shared his thoughts around bitcoin, saying that the digital asset is massively overvalued. Gundlach who is also known as the ‘Bond King’ is the founder of the investment firm, DoubleLine Capital.

Bitcoin which has suffered numerous dips that have caused it to lose over 30% of its all-time high value continues to struggle, but even at these low prices, the billionaire does not believe that the cryptocurrency is actually worth its current value.

Related Reading | ARK Invest CEO Cathie Wood On What Will Drive Bitcoin Correction

Bitcoin Is A Spectator’s Market

Gundlach appeared on Yahoo! Finance to talk about a number of issues surrounding the financial markets. The billionaire is infamous among bond investors but talked about why bitcoin remains too high to purchase. For Gundlach, buying bitcoin now is a bad business move. This is because people are getting out as the price is falling and would cause the digital asset to become even more volatile.

However, the billionaire did not warn against purchasing the asset at all. In fact, Gundlach gives a price range at which he thinks that buying bitcoin would be a great move. He explained that investors should purchase the digital asset when it loses another $15,000 from its current value, putting the sweet spot for purchase at $25,000.

“Bitcoin is for speculators at the present moment. I would advise against buying it. It will be volatile as people get out. Maybe you should buy it at $25,000.”

Gundlach, who has always been a big proponent of bonds, continued to push for it. He explains that bitcoin is for momentum investors, which he likened to FAANG stocks, and for him who is an anti-momentum investor, bonds are the perfect fit, saying, “Bonds fit my culture of cowardice.”

“If you’re a momentum investor, it’s like playing roulette with a strategy that works as long as the wheel doesn’t come up on the zero or double zero. You’re making money, making money, and then eventually you get a double zero and you’re busted. Momentum investors tend to go out in a blaze of glory.”

BTC trading at $43,750 | Source: BTCUSD on TradingView.com
NFTs Are Junky Stuff

Bitcoin was not the only crypto asset that Gundlach touched on in his interview. The billionaire also focused NFTs, a fast-growing space that has gone from obscurity to one of the biggest markets in the crypto space in a matter of a year.

He explained that the growth of NFTs was too fast and like bitcoin, was an investment for “investors on large doses of steroids.”

Related Reading | Jack Dorsey Launches Bitcoin Defense Fund To Aid Devs Facing Litigation

Gundlach further said that for him, when it comes to buying things like art, he would only buy quality. Comparing it to real estate, he states that “You should really buy the highest quality, as these assets can appreciate very steadily.”

As the financial markets await a decision from the Fed, the billionaire also warned that the Fed could send the economy into recession if it tightened its monetary policy.

Featured image from Bitcoin News, chart from TradingView.com

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Bitcoin Discount? Peter Brandt On Why You Shouldn’t Buy The Dip

Bitcoin has been dropping consistently for the past week and the crypto market has lost over $500 billion following this dip. Like with any crash, there have been the expected calls of ‘buy the dip’ from investors who believe that the dips are only temporary and that the digital asset will soon recover all of its lost value.

While this advice is sometimes sound, there is no doubt that there are some drawbacks with it, which could range from adding to a losing position that ends up losing more, to sinking more money in projects that may already be doomed to fail. Veteran trader Peter Brandt has addressed these calls of ‘buy the dip’, explaining why investors should not follow it.

Related Reading | Melania Trump Congratulates Bitcoin On 13th Anniversary Of Bitcoin Genesis Block

You Could Lose More Money

Famed trader Peter Brandt responded to a tweet from CEO of Vailshire Capital, Jeff Ross, saying that the price dips that are being experienced by bitcoin presented an opportunity for long-term traders to increase their holdings. Brandt’s tweet was vehemently against this school of thought, proposing instead “a sacred trading rule” for investors during times like these.

The veteran trader compared the current movement of bitcoin to the Silver $SI_F of 1980, which had grown to its $50 top after a massive run. It had subsequently sunk to $3.65, leading people to purchase it in the hopes of catching the dip, but the asset ended staying low for more than two decades.

Basically, the investor urged investors to not rush to purchase bitcoin because it is low and they think it will not go lower.

BTC continues downward trend | Source: BTCUSD on TradingView.com
Comparing Gold And Bitcoin

In a subsequent tweet, Brandt did a similar comparison to the price of bitcoin. This time around, he focused his attention on gold, calling out the fact that just like silver in the 1980s, gold experienced a similar trend.

He explained that gold had first hit its all-time high of $873 in 1980, followed by a drop in price to $255. The asset which had been the inflation hedge of choice for many decades had remained in this territory for almost three decades following this and would only beat this previous all-time high 27 years later.

Related Reading | TA: Bitcoin Key Indicators Suggest A Strengthening Case For More Downsides

Brandt admonished the author of the previous tweet by asking, “Is this your definition of a ‘long-term’ investor?”

Naturally, Brandt’s comment regarding bitcoin had drawn the ire of bitcoin maximalists who flocked to explain to the older trader why the digital asset would not follow the footsteps of gold and silver.

One user tweeted that “Difference is btc is technology, not a rock”, while another pointed out that bitcoin had more utility, saying, “Gold has been a disastrous investment. Not much utility in it. Hard to carry your gold with you in the event of political system or economic collapse. Hence #Bitcoin.”

Featured image from Blogtienao, chart from TradingView.com

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Galaxy Digital CEO Mike Novogratz Says Bitcoin Has Hit The Bottom

Bitcoin has been on a downward streak since the last quarter of 2021, and this has spilled into the new year. As January goes into full bloom, it has come with discouraging movements for investors as over $500 billion has been wiped off the market. This has sent bitcoin’s price down to the dreaded $40,000 price range.

One question that remains in the mind of investors is, has the market seen the bitcoin bottom? Billionaire Mike Novogratz attempts to answer this as he puts forwards his thoughts on the issue and predicts the bitcoin bottom.

Related Reading | TA: Bitcoin Key Indicators Suggest A Strengthening Case For More Downsides

Bitcoin Should Bottom Out Between $38,000 to $40,000

Galaxy Digital CEO Mike Novogratz has always been an active voice in the crypto space and has at various times given his thoughts on the market. This time around, Novogratz sat down with CNBC’s Squawk Box, where he predicted where the bottom of the current bitcoin downtrend will be.

The billionaire CEO placed the floor of the current downtrend at $38,000 which he does not see bitcoin going under. Currently, bitcoin’s lowest during the dips have been $40,680, from which the digital asset has since recovered. But if Novogratz’s predictions are anything to go by, then the market may see another dip before there is a full-blown recovery trend.

BTC price tumbles down to $41,475 | Source: BTCUSD on TradingView.com

The CEO gives his reason for this bottom as institutional investors taking advantage of the low prices to get into the digital asset. I” know big institutions who are going through their process to put positions on. They’re going to see those as attractive levels to buy,”  Novogratz said.

“On the charts, $38,000, $40,000 feels like where we should bottom,” he added.

Inflation Will Drive Growth

Continuing on, Novogratz shares more regarding his stance on this predicted bitcoin bottom. One of those has been inflation.

Those who have been following the markets know that rising inflation rates have led to increasing concerns among investors who have begun to look for alternatives to gold to serve as an inflation hedge. Bitcoin has naturally become the option for these investors.

The Fed believes that inflation rates will begin to come down, but the CEO explained that if this does not go as planned, then “all bets are off.”

Related Reading | Melania Trump Congratulates Bitcoin On 13th Anniversary Of Bitcoin Genesis Block

Digital Galaxy, on which Novogratz heads as CEO, has made a name for itself in the space as being a big bitcoin proponent. The company currently holds over 12,000 bitcoins, making it one of the companies with the largest bitcoin holdings in the world.

Mike Novogratz himself also has a personal stake in cryptocurrencies, revealing that he holds about 85% of his net worth in cryptocurrencies, which at the time translated to up to $4.8 billion held by the billionaire in crypto.

Featured image from Stock Hax, chart from TradingView.com

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MicroStrategy Remains One Step Ahead With $94M Bitcoin Purchase

MicroStrategy has once again doubled down on its bitcoin holdings with another purchase. This time around, the company spent almost $100 million to add more BTC to its mammoth holdings. The company which has been buying bitcoin since 2019 has stuck to its promise to invest heavily in the digital asset and has been the only company to continue buying through the dips.

MicroStrategy Buys More Bitcoin

MicroStrategy announced that it has bought more bitcoins to add to its balance sheet. The publicly listed company had bought a total of 1,914 BTC between December 9th and 29th. Each of the BTC was bought at an average of $49,229 and the total cost of the bitcoins purchased came out to $94.2 million.

Related Reading | Bitcoin Only Works For The Wealthy, Senator Elizabeth Warren

MicroStrategy’s CEO Michael Saylor, took to his Twitter account to share the news of the purchase with his followers. Saylor who is a vocal bitcoin proponent is one of the reasons the company had begun purchasing the digital asset after he disclosed his holdings to the board and demonstrated his returns.

MicroStrategy has purchased an additional 1,914 bitcoins for ~$94.2 million in cash at an average price of ~$49,229 per #bitcoin. As of 12/29/21 we #hodl ~124,391 bitcoins acquired for ~$3.75 billion at an average price of ~$30,159 per bitcoin. $MSTRhttps://t.co/tNxDwaT8VD

— Michael Saylor⚡ (@saylor) December 30, 2021

The company also published a disclosure that made the sale known. Funds for the recent bitcoin purchase were apparently raised from selling shares of the company, which MicroStrategy has done at various points in the past to raise money for its buying sprees.

BTC recovers to $47K | Source: BTCUSD on TradingView.com
The Sole Driver Behind Corporate Investing

MicroStrategy has made a name for itself as being the public company with the largest bitcoin holdings in the globe. However, lesser-known is the fact that it remains one of the top drivers of institutional investment in the digital asset.

Bitcoinist reported that MicroStrategy alone accounted for about 71.4% of all BTC holdings by companies. With its most recent purchase, the company has no doubt pushed this figure even higher, widening the gap between it and other companies who currently bitcoin on their balance sheets.

Related Reading | The Year Of Alt Season: Altcoins Dominate Market In 2021

The company has spent about $3.75 billion on BTC in the past two years. This investment has paid off handsomely as the company’s total bitcoin holdings now sit above $6.1 billion, indicating that it has been a lucrative investment for them. The company now holds a total of 124,391 BTC on its balance sheet with its most recent purchase.

Its announcement of its bitcoin strategy earlier in the year had prompted other companies such as Tesla, Square, Aker, and Meitu to also disclose their bitcoin holdings. However, MicroStrategy is the only company that has continued to purchase BTC, buying an average of 3,000 BTC per month in the third quarter of 2021.

Featured image from Bitcoin News, chart from TradingView.com

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Billionaire Ricardo Salinas: Forget Fiat, Buy Bitcoin Bitcoin Instead

Mexican billionaire Ricardo Salinas Pliego has always been a big proponent of bitcoin. The billionaire has numerous times told investors to invest in bitcoin over fiat given the potential of the former and how it can serve as an inflation hedge. He has once again openly shown support for the digital asset in a Christmas video where he has advised investors to steer clear of fiat and invest their money in bitcoin.

Dishing Out Bitcoin Advice For The Holidays

In the video posted on his Twitter account with almost 1 million followers, the billionaire gave out some important life and investing advice. His message spanned from asking his followers to not give in to jealously and to always believe in themselves when they pursue their freedom and innovation. He also gave some pertinent advice regarding investing in fiat.

Focusing on fiat money in general, the successful businessman gives his followers some important bits of advice regarding investing in fiat. In short, he asked them to not do it. He did not limit his advice to a particular fiat currency, instead, he says to stay clear of all forms of fiat currencies.

Related Reading | 74% Of Bitcoin Holders Remain In Profit At Current Prices

“Steer clear of fiat money. Whether it’s the Dollar, the Euro, or the Yen –it’s all the same,” Salinas said. “It’s fake money made of paper lies. Central banks are producing more than ever.”

Salinas then gives out an alternative to fiat; bitcoin. The billionaire advised investors to instead buy bitcoin instead of fiat.

BTC settles above $50K | Source: BTCUSD on TradingView.com
The Government Is Stealing Your Money

In another tweet, the billionaire reiterates his stance on fiat money. This time, comparing the price of things in 2020 versus 90 years ago. This argument has been made a good amount in inflation debates and how much buying power has depreciated over the last century, and Salinas puts this in perspective using two pictures comparing the purchasing power of $20 in two different centuries.

The tweet warned followers that inflation was a tool for the government to keep the masses scared and controlled, as well as stealing their money through taxes.

Related Reading | By The Numbers: Here’s How Much Bitcoin Michael Saylor Holds

“Central banks and governments use INFLATION to steal your purchasing power and keep you where they want to have you … scared, controlled, quiet and without freedom, they set your schedules, they put regulations on you and they keep your money through ‘taxes’.”

He signs off the tweet with a bitcoin hashtag hinting at the digital asset as being the solution to this.

Salinas has always been a bitcoin bull since 2013 when he had purchased his first bitcoin. In 2018, he referred to it as one of his best-performing investments and at one point said he had 10% of his wealth in the cryptocurrency.

Elektra, a Mexican retail chain owned by Salinas, recently became the first to accept bitcoin payments in Mexico.

Featured image from Cointribune, chart from TradingView.com

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El Salvador Calls Another Bitcoin Dip With 150 BTC Purchase

Bitcoin has now become part of El Salvador’s daily life following the official implementation of the cryptocurrency as a legal tender. Since then, the El Salvador government has pledged to purchase bitcoins and has held up its end of the bargain. Now, every time the price of BTC goes down, the country calls the dip and purchase a significant amount of bitcoin.

In multiple instances spread through the past couple of months, El Salvador has purchased millions of dollars worth of bitcoin. The country had purchased 100 bitcoins during the last bitcoin dip. This time around, El Salvador has taken another opportunity to increase its BTC holdings, adding 150 coins to its coffers.

Related Reading | Calls For Tesla To Resume Bitcoin Payments As Mining Reaches 57% Renewable Energy

El Salvador Calls The Dip

Only a week after its last purchase, El Salvador has deepened its bitcoin bet again. The decrease in the value of the digital asset has seen the country taking advantage of the presented opportunity. While a good portion of the market panics and believes that it might be headed into a bear market, El Salvador has gone the opposite way made evident by its BTC purchases.

Once again, President Nayib Bukele had taken to Twitter to announce the purchase which took place on Saturday. Bukele announced to his 3.2 million Twitter followers that the country had bought the dip, purchasing 150 coins at an average price of $48,670, bringing the total loot to approximately $7.3 million.

El Salvador just bought the dip! 🇸🇻

150 coins at an average USD price of ~$48,670 🥳#Bitcoin🎄

— Nayib Bukele 🇸🇻 (@nayibbukele) December 4, 2021

BTC trading below $50K | Source: BTCUSD on TradingView.com
Bitcoin In The Green

Although the move on President Nayib Bukele’s part is praised by many in the bitcoin space, not everyone has been happy with the purchases. There has been a lot of criticism regarding El Salvador’s decision to invest in BTC on a national scale but this has rolled off of Bukele like water off a camel’s back.

Related Reading | SEC Boss Acknowledges That Bitcoin Is A Competitor For U.S. Banking System

Responding to a comment saying that the president was wasting taxpayers’ money on a digital asset that was set to suffer more dips, Bukele explained that the BTC the country has purchased so far has remained in profit. Bukele compared its BTC holdings to its gold reserves which are down 0.37% from a year ago while its bitcoin remains in green.

None.

We’re already in the green from our last purchase, in less than 24 hours.

You know boomer, we have 44,106 oz of gold in our reserves.

Worth $79 million, down 0.37% from a year ago.

If we had sold it a year ago and bought #Bitcoin, it would now be valued at $204 million. https://t.co/e5z9cVsfjg

— Nayib Bukele 🇸🇻 (@nayibbukele) December 4, 2021

With its latest 150 bitcoin purchase, El Salvador now holds 1,370 BTC.

Featured image from Anadolu Agency, chart from TradingView.com

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MicroStrategy Bent On Increasing Bitcoin Bet After 9,000 BTC Purchase, Says CEO

MicroStrategy has been bullish from the start evidenced by its bitcoin purchases. The firm owns over 110 bitcoins and has deepened its crypto bet at various times during the past year. The tech firm has continuously raised money at various points to purchase more BTC to add to its balance sheet and there is no sign of stopping anytime soon according to CEO Michael Saylor.

Saylor has, numerous times, reiterated the company’s bullish stance on BTC. The CEO himself is a bitcoin maximalist with a personal and corporate stake in the digital asset.  The company has so far raised almost $400 million to fund its purchases this year and has seen tremendous gains from its investment.

Related Reading | Bitcoin Exchange Balances Decline To Three-Year Low Amid Rising Prices

MicroStrategy Buys 9,000 BTC

MicroStrategy once again raised its bitcoin bet with its most recent purchase. In October, the company announced that it had purchased an additional 9,000 BTC to its already impressive holdings. MicroStrategy had taken its usual route to purchase its latest lot of the digital asset, staking that the purchase was made possible by “successfully raising capital in the quarter through our at-the-market equity offering.”

BTC trading above $62K | Source: BTCUSD on TradingView.com

The latest purchase brings MicroStrategy’s BTC holdings to a total of 114,042 BTC. The company is still long on the digital asset after CEO Michael Saylor revealed during an earnings call that the company does not intend to sell any of the BTC on its balance sheet. MicroStrategy believes that the asset is one of the best long-term investments available.

The total value of MicroStrategy’s BTC holdings now comes out to a little over $7 billion. Over half of this value has come from the gains on the bitcoins that the company has purchased over time. The carrying value for all of its holdings currently sits at $2.406 billion. MicroStrategy’s market capitalization is now at $7.4 billion, thanks to its BTC holdings.

Going All In On Bitcoin

Despite the massive gains on its investment thus far, MicroStrategy has made no attempt to cash out the profits from the digital asset. Instead, the company plans to continue to purchase more bitcoins over time. Saylor explained this in a company statement when laying out the tech company’s intent for the future. “We will continue to evaluate opportunities to raise additional capital to execute on our Bitcoin strategy,” Saylor explained.

Related Reading | El Salvador Calls Another Bitcoin Dip With $25 Million Purchase

This comes as no surprise as the CEO has always been very vocal about his long-term convictions for the digital asset. Saylor has not been fazed by dips in the market as the crypto enthusiast has cheered on the cryptocurrency through thick and thin. The CEO has held his BTC stash through rough markets and continues to advocate for holding on to bitcoins as opposed to selling them.

Featured image from AZCoin News, chart from TradingView.com

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El Salvador Calls Another Bitcoin Dip With $25 Million Purchase

El Salvador has once again deepened its bitcoin bet with another purchase. The sovereign nation had made history as the first to officially implement bitcoin as a legal tender back in September. To mark the historical moment, President Nayik Bukele had announced that the country had bought 200 bitcoins. A promise to purchase more followed the purchased and the country had kept to that promise.

The country had purchased an additional 250 bitcoins after this. The third buy-in in September brought the total of El Salvador’s holdings to 700 coins. At each of these stages, President Nayib Bukele has referred to the purchases as ‘buying the dip.’ These have proven to be the case as the country of El Salvador is currently in profit with its BTC holdings.

El Salvador Buys 420 BTC

Since the price of bitcoin hit a new peak in October, the value of the asset had been on a downtrend. A number of small dips had seen the price pushed below $60K again. El Salvador has taken this as an opportunity to increase its BTC holdings while the broader market is more conservative. In line with the previous sentiment, the president tweeted that the country had once again ‘bought the dip.’

Related Reading | Bitcoin Exchange Balances Decline To Three-Year Low Amid Rising Prices

A follow-up tweet from the president hours later confirmed that the country was now in profit from its recently purchased bitcoins. This is because the purchase had been made when the price was still floating around $58,000 and by the time the follow-up tweet was posted, BTC’s price had gone back up above $60K.

It is still yet to be seen if the bet in BTC will pay off for the long term. However, in the short term, El Salvador is seeing major gains from its investments in the digital asset. The first batch of BTC was bought at $52,000 and the asset has since hit a new all-time high of $67,000.

BTC price trending at $61K | Source: BTCUSD on TradingView.com
How Does El Salvador Bitcoin Profit Work?

President Nayib Bukele took time out to clarify some inquiries about its investments in BTC. He pointed out that the country operates on a 1 BTC = 1 BTC perspective rather than just looking at the profits from the fiat value. This means that although El Salvador’s bitcoin fund is in USD, they fund it with USD and BTC. They only take out gains in USD but leave the fund with the same number of BTC that is in it.

How do we make a profit if 1 #BTC= 1 #BTC?

We have a trust fund accounted in USD, but the trust is funded by both USD and BTC.

When the BTC part revalues in comparison to the accounting currency (USD), we are able to withdraw some USD and leave the trust with the same total.

— Nayib Bukele 🇸🇻 (@nayibbukele) October 27, 2021

Related Reading | Why Trapped Longs At Bitcoin ATH Could Lead To More Downside

El Salvador’s strategy is an interesting one. However, it is not unique. Bitcoin maximalists have always believed that BTC is the currency of the future. Therefore, the asset should not be measured by its value in USD. Instead, it should be measured by its value in BTC. Ergo, 1 BTC = 1 BTC.

Featured image from Payments Journal, chart from TradingView.com

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Blockchain Firm Chainalysis Is Adding Bitcoin To Its Balance Sheet

Chainalysis has announced that it plans to add bitcoin to its balance sheet. The news came as a surprise to crypto investors as it is usually expected that a firm so deeply ingrained in the blockchain technology ecosystem would own some crypto. According to the blog post on its website, the firm had previously not owned any cryptocurrencies and this will be the first time Chainalysis is purchasing BTC.

Bitcoin has been purchased as an investment strategy by companies who are in and out of the blockchain space. The digital asset presents an alternative means of investment for people who want to have total control of their assets. With its recent purchase, Chainalysis joins the ranks of companies who are holding BTC for the long term, according to statements on the post.

Chainalysis Takes The Leap With Bitcoin

Chainalysis revealed in the post that it was buying bitcoin to put on its balance sheet. The company which is valued at $4.2 billion will put the purchased BTC in its corporate investment portfolio and intends to hold for the long term.

Related Reading | Number Of Bitcoin Whales On The Rise As BTC Chases New All-Time High

The company provides valuable software analysis software that helps exchanges comply with regulations. Its software is also used to assess risk and identify illegal activities that are being carried out on the blockchain, helping law enforcement to track the perpetrators.

Co-founder and CEO of Chainalysis, Michael Gronager, said, “Chainalysis is laser-focused on its commitment to building trust in cryptocurrency as a digital asset and we are thrilled to be adding bitcoin on our corporate investment portfolio.” Speaking on this being the first cryptocurrency purchase on the part of the firm, Gronager added, “This is Chainalysis’ first acquisition of cryptocurrency, and we will continue to pursue other digital assets as potential future investments.”

BTC surges past $64K | Source: BTCUSD on TradingView.com
Partnership With NYDIG

In order to purchase and custody the bitcoins, Chainalysis had expanded its partnership with bitcoin technology and financial services firm NYDIG. Both firms have been working together since they announced that Chainalysis would be NYDIG’s compliance technology partner in 2018. The BTC was purchased through the financial services firm and NYDIG will custody the digital assets on behalf of Chainalysis.

Related Reading | Strike Launches New Feature To Allow Users Convert Salaries To Bitcoin

“Our expanding partnership with Chainalysis is a mutually beneficial relationship. Chainalysis has long been building trust in the digital asset ecosystem, and this investment shows their belief that bitcoin is a sound investment for the future. We are happy that they trusted our platform to safeguard their assets.” – Nate Conrad, Head of Asset Management, NYDIG

The acquisition highlights Chainalysis’ long-standing faith in BTC as a long-term investment strategy. Bitcoin has been a profitable investment venture for companies that have invested in the digital asset in the past and Chainalysis stands to profit from the asset’s growth in the future.

Featured image from Bitcoin News, chart from TradingView.com

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CEO Of Soros Fund Management Confirms That The Family Office Is Invested In Bitcoin

Billionaire George Soros’ investment fund has had its eye on bitcoin for a while now. Bitcoinist had reported in July that the fund was looking to start trading bitcoin. It would not be the first time the company was getting into the crypto market but it is the first time that the fund has traded in the digital asset directly. Bitcoin was at the top of its list. However, the fund had its eye on other crypto-assets in the space.

Soros Fund CEO Dawn Fitzpatrick has now confirmed that the investment firm had indeed begun trading in cryptocurrencies. Speaking on Bloomberg Live, Fitzpatrick said that the Soros Fund had invested in some cryptocurrencies. Apparently, the fund had bought some coins in the past month, but Fitzpatrick explained that the fund did not own a lot of cryptos. “We own some coins. Not a lot.” Fitzpatrick said.

Related Reading | Bitcoin Shakes Off Bloody September As Price Breaks $50K, Headed For New All-Time Highs?

The CEO’s fund had actually started looking into the cryptocurrency market for over two years. The following years have seen the fund invest in crypto infrastructure companies like exchanges and custodians. The family office had participated in an investment round that had raised $200 million for New York Digital Investment Group.

It wasn’t until the bull rally of 2021 that the fund had confirmed that it was looking to start trading in bitcoin. It was not revealed what cryptocurrencies the fund held in its custody but it is confirmed that the firm is trading bitcoin.

BTC price trailing $54K | Source: BTCUSD on TradingView.com
Hedging With Bitcoin

Bitcoin is often used as a hedge against inflation. Investors have turned to the digital asset due to its year-over-year growth compared to the current inflation rate. Fitzpatrick acknowledged that the crypto could be used as an inflation hedge, but thinks that the asset has grown beyond just this use case. “I’m not sure Bitcoin is only viewed as an inflation hedge here,” Fitzpatrick said. “I think it’s crossed the chasm to mainstream.”

Another interesting point from the CEO was the utility of the decentralized finance space. While the fund itself owns some coins, Fitzpatrick says that what is really interesting are use cases like decentralized finance (DeFi). The applications of crypto and blockchain technology have gone just beyond trading in coins. It is now a vehicle for earning passive income for a lot of investors.

Related Reading | Bitcoin Inflows Shows Institutional Investors Are Back On The Bull Train

Furthermore, Fitzpatrick added, with the current valuation of the crypto market, the fund did not believe that bitcoin can be relegated to the background anymore. If anything, crypto is now mainstream.

“Cryptocurrencies now have a market cap of over $2 trillion. There’s 200 million users around the world, so I think this has gone mainstream from our perspective.”

Featured image from Corporate Finance Institute, chart from TradingView.com

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Billionaire Orlando Bravo Reveals He Owns Bitcoin And Why He’s ‘Very Bullish’

Billionaire Orlando Bravo recently revealed his stance on crypto. Talking to CNBC, Bravo revealed that he indeed held bitcoin and held a very bullish stance on the future of the digital asset. The billionaire appear at the Delivering Alpha conference where he openly expressed his love for crypto. Bravo highlight some of the best features of cryptocurrencies, exclaiming, “How could you not love crypto?”

Bitcoin Is Here To Stay

Although already quite valuable, the billionaire sees more growth in the future of the currency. Institutional investors are yet to completely dive into the space and Bravo explained that with more institutional adoption will come a surge in the value of the digital asset.

Related Reading | JPMorgan CEO Doesn’t Care If Bitcoin Grows 10X In Five Years

Being able to completely operate outside the purview of the government has been one of the major drivers of bitcoin growth. It has provided investors the opportunity to invest with amounts that would otherwise have seen them locked out of traditional investment avenues. Providing a major pull for younger investors who would rather take control of their financial investments.

Besides being personally owning bitcoin, Bravo’s equity firm Thoma Bravo is also invested in the crypto space. Thoma Bravo participated in a recent funding round carried out by the fast-growing crypto exchange FTX Trading. This puts the billionaire in a position where he is both personally and professionally invested in crypto. But it doesn’t end there. The fund manager also sees great potential in blockchain technology and said it “sometimes provides better use cases than data-based software.”

BTC price trading in the mid-$43K | Source: BTCUSD on TradingView.com
Why Bravo Is Bullish

Bravo’s bullish stance on crypto mainly boils down to one thing; adoption. It is estimated that less than 10% of the world’s population knows about bitcoin. With bitcoin’s growth being likened to that of the internet, there is going to be a major explosion in adoption in the next five years. The billionaire pointed that the digital asset will only continue to grow as more people adopt it.

“For me, it’s pretty simple. More people are going to use it in the future than today, and it’s going to be more established. Institutions are just beginning to go there, and once that happens, I think it will increase significantly over the years. I’m very bullish.”

Related Reading | Verifone Brings Bitcoin Payments To Thousands Of Merchants Across The U.S.

When asked if he thought crypto was here to stay, Bravo had enthusiastically replied, “absolutely.” He explained that inflation and transaction fee rates will drive people to bitcoin.

The billionaire declined to comment on future price predictions for the asset saying, “I’m not going to give you a number because looking at the fundamental value here is very difficult.” But added that bitcoin’s finite supply coupled with its use cases and growing adoption will be positive for the value of the digital asset going forward.

Featured image from The Guardian, chart from TradinginView.com

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JPMorgan CEO Doesn’t Care If Bitcoin Grows 10X In Five Years

Bitcoin investing is arguably one of the most talked-about investment in the finance industry at present. The returns on the digital asset have seen people allocating more of their investment budgets to bitcoin. But for people who may not have as much fiat as they would like to invest in the asset, borrowing has been a way to get more money to invest.

Related Reading | Over $5 Billion In Bitcoin And Ethereum Moved From Cold Wallets Amid China Crackdown

Individuals are also not alone when it comes to borrowing to invest in bitcoin. Institutional investors have also historically borrowed to invest in BTC. A notable example of this is MicroStrategy, the leading institutional BTC investor, which borrowed $600 million back in February in order to buy more bitcoin. This has been a growing trend in the crypto market to borrow to invest. But JPMorgan CEO says borrowing to invest in bitcoin is foolish.

Don’t Borrow Money To Buy Bitcoin

In an interview conducted by the Times Of India, JPMorgan CEO Jamie Dimon talked about bitcoin. On its popularity, Simon said he believed that people were wasting “too much time and breath” on the digital asset, after stating that he does not care about the cryptocurrency. He revealed that he personally does not invest in the digital asset. Further stating, “I think if you borrow money to buy bitcoin, you’re a fool.”

BTC price trading above $42K | Source: BTCUSD on TradingView.com

The CEO also believes that the government will eventually regulate the cryptocurrency since they “regulate just about everything. Crypto regulation has recently been a hot topic for the SEC recently. And Dimon believes that though he’s not exactly sure how or under what umbrella cryptocurrencies will be regulated, the government will regulate it. This regulation, the CEO believes, will constrain the asset.

Asset May 10X In The Next Five Years

Since its inception, bitcoin has recorded tremendous success. The asset has grown over 400,000% since it was first launched a little over a decade ago. Its past growth lends credence to the future price predictions placed on bitcoin. And although not a big believer in the digital asset, the CEO believes that the digital asset has the potential to grow 10 times in the next five years.

Related Reading | JPMorgan Analysts Say That Big Money Are Dumping Bitcoin For Ethereum

However, the CEO notes that there is no telling where the asset might end up in the next couple of years. He cited other investments that were once hot on the market and how they are now worth nothing years later, such as internet stocks and the popular beanie babies.

Dimon also noted that speculation is bound to happen in every market and it is what drives financial markets. “So, I don’t know why there is a surprise with a lot of speculation, particularly when there’s as much liquidity in the system,” the CEO said.

Featured image from Seeking Alpha, chart from TradingView.com

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MicroStrategy Deepens Its Crypto Bet With Another $240 Million Spent On Bitcoin

MicroStrategy has stuck to its bitcoin strategy through thick and thin. At this point, every dip seems to be a buying opportunity for the firm, which has completely thrown its weight behind bitcoin. Its CEO Michael Saylor is a maximalist that believes the future is bitcoin. MicroStrategy has been upping its bitcoin investment through the year, garnering a stash of over 100K bitcoins.

Even now, the firm continues to straighten its position in the digital asset. CEO Michael Saylor announced that the firm had bought another 5,050 bitcoins, bringing the total assets held by the company to approximately 114,042 bitcoins. The 5,050 bitcoins were bought for around $242 million, with an average price of $48,099 per BTC. This brings the total amount of the digital asset held by the firm to $3.6 billion. All are gotten at an average price of $27,713 per coin.

MicroStrategy has purchased an additional 5,050 bitcoins for ~$242.9 million in cash at an average price of ~$48,099 per #bitcoin. As of 9/12/21 we #hodl ~114,042 bitcoins acquired for ~$3.16 billion at an average price of ~$27,713 per bitcoin. $MSTRhttps://t.co/2ESbTy6ad7

— Michael Saylor⚡️ (@michael_saylor) September 13, 2021

Related Reading | Cathie Wood Reiterates $500K Bitcoin Call, Reveals Ethereum Rebalancing

MicroStrategy has refused to sell off its crypto holdings at any point. Crashes seem to not phase the firm as they invest even more into the asset with every price dip. This latest acquisition goes to show their commitment to the long-term growth of bitcoin. Saylor also has both personal and institutional interest in the asset and is one of the most vocal corporate supporters of the digital currency.

MicroStrategy Making All The Right Moves

MicroStrategy has now seemingly abandoned traditional assets in favor of investing in bitcoin. A report from Bitcoinist shows where the firm would be profit-wise had it opted to invest in one of the most well-known traditional investments, gold, instead of investing in bitcoin. Since bitcoin has consistently outperformed gold by at least 200% year over year for the past couple of years, MicroStrategy’s investment would have way less in the way of return. Or as the report shows, the firm would be recording losses at this point.

Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course

Comparisons between the digital asset and gold from March to June 2020, the time period when the firm first invested in bitcoin, shows what the current value of the investment would be. MicroStrategy had put about $2 billion into its bitcoin investment, which presently has appreciated over 376% in the span of a year. On the other hand, had the firm put this $2 billion into a traditional asset like gold, it would have lost 80% of its total value.

This is because gold has given negative returns on investment in the past year. Thus any investment in the asset would result in a loss. The success of MicroStrategy’s bitcoin investment has also bolstered the company’s standing profit-wise. Not only is its investment outperforming gold, but the company itself has also outperformed gold in the market.

BTC price above $46,000 | Source: BTCUSD on TradingView.com

MicroStrategy’s shares have appreciated 428% in the year following the launch of its bitcoin fund. Outperforming both the NASDAQ and the S&P500 combined. MicroStrategy is currently the leading corporate investor in bitcoin.

Featured image from CoinQuora, chart from TradingView.com

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Ricardo Salinas Pliego: Bitcoin “Should Be Part Of Every Investor’s Portfolio”

Mexico’s third wealthiest billionaire according to Forbes is a Bitcoin fan. Ricardo Salinas Pliego sure did his homework, and he’s here to make you see the light. The billionaire recently announced that he holds 10% of his portfolio in Bitcoin. Why? Salinas Pliego knows a few of the reasons that make BTC the soundest money that the world has ever seen.

The subtitled video arrives via podcaster Anthony Pompliano, who says, “Incredible to see this from @RicardoBSalinas given his historic wealth and success.”

If you can speak Spanish and have eight minutes to spare, the original video comes from José Pimpo’s YouTube channel.

Related Reading | The Wall between US and Mexico May Work out Well for Bitcoin

The Reason Bitcoin Should Be Part Of Your Portfolio

According to Michael Saylor, you have to invest at least 100 hours studying Bitcoin before you start to get it. His Mexican counterpart here, Salinas Pliego, evidently put in the time. About Bitcoin, he says:

“I’ve invested a lot of time studying it, and I think that it’s an asset that should be part of every investor’s portfolio. It’s a valuable asset, with international value, that’s traded with enormous liquidity at a global level. And that’s reason enough for it to be part of any portfolio. Period.”

Those are important reasons, but not something that can’t be said about the Dollar. The US’s currency holds international value and you can exchange it with ease for local money in any market. However…

What Does Salinas PliegoThink About Fiat Currencies?

The facts are the facts, money printing and inflation devalue the purchasing power of all the holders. There are no two ways about that. Or, as Salinas Pliego puts it:

“Fiat is a fraud. I started my professional career in ‘81. The Peso was at 20 x 1 (USD.) Today, we are at 20.000 x 1. That’s all there’s to know. And that’s here in Mexico, because if we look at Venezuela, Argentina, or Zimbawe, the numbers loose all proportion. The fraud of fiat is something inherent to the fiat system, and we’re watching it happen in the USA. The monetary emission went to the moon, you understand. The Dollar as hard money is a joke.”

It’s worth noting that in 1993, Mexico phased out the Peso (MXP) and introduced the Nuevo Peso (MXN, “New Peso”.) One MXN is worth one thousand MXP. So, Salinas Pliego’s numbers are correct. 

Also, notice the casual mention of the “went to the moon” meme. This man clearly studies the crypto sphere.

Why Is Ethereum Not A Valid Store Of Value?

Sorry, Vitalik fans. Ethereum has many qualities, but being a store of value isn’t one. Salinas Pliego puts it in simple words:

“Bitcoin’s finite supply, the 21 million, that’s the key of the whole thing. That’s what I was saying about Ethereum. As long as they don’t have a finite supply, I don’t believe them at all. For all I know, they emit more and your asset depreciates.”

And yes, when the EIP 1559 proposal comes into effect, Ethereum will burn some ETH after every transaction. Still, the daily issuance will be much higher than the daily burns. And there’ll not be a hard cap.

Related Reading | Bitreserve adds Bitpeso and Bitrupee to Support 8 Currencies

Who Is Ricardo Salinas Pliego, Anyway?

For a quick profile, we’ll pass the mic to Forbes:

  • Ricardo Salinas Pliego runs the number two Mexican TV broadcaster, TV Azteca, and retailer Grupo Elektra.

  • His Grupo Elektra targets lower middle class consumers who borrow money from his banking arm, Banco Azteca, to buy items at Elektra stores.

  • Elektra, which is publicly traded, was founded in the 1950s by Ricardo’s grandfather, Hugo Salinas Rocha.

  • Salinas appointed a new CEO to TV Azteca in January 2021, replacing his son, Benjamin Salinas Sada, who he’d appointed in 2015.

Among the world’s billionaires, Salinas Pliego is currently at #166 according to the same magazine.

BTCUSD price chart for 06/27/2021 - TradingView

BTC price chart on Bittrex | Source: BTC/USD on TradingView.com