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One of Latin America’s wealthiest men is ramping up his advocacy for Bitcoin.
“You have a house?” Grupo Salinas Chair Ricardo Salinas said on an episode of Robert Breedlove‘s “What is Money?” podcast released last week. “If you think that’s your investment, sell the house and buy Bitcoin and rent, or keep the house, take a mortgage, buy Bitcoin and then use the Bitcoin to cover your spending needs as they show up.”
Salinas’ remarks are a significant escalation from his previous advice that individuals employ a dollar cost averaging strategy to get into Bitcoin. The escalation comes as the billionaire says individuals are facing an imminent threat of having their savings eroded, touting Bitcoin as the only way out.
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He said that while a house was a good investment, it did not “stand a chance against Bitcoin,” as the value of houses has historically gone down against the cryptocurrency asset.
“You can’t take the house with you if something happens,” he said, outlining more downsides of real estate against Bitcoin. “And you know you get the property tax and you get the maintenance.”
Salinas said that amid the U.S.’ mounting debt burdens, the government will soon attempt to liquidate the debt through inflation. The process of liquidating debt typically involves bringing interest rates below inflation, triggering more inflation that reduces the real value of the debt. Indeed, this is a strategy that President Donald Trump appears to be leaning towards, with multiple calls for the Federal Reserve to cut rates.
Salinas said Mexico went through a similar occurrence in the 1980s, adding that he saw the currency exchange rate go from 20 pesos to a dollar to 3,000 pesos to a dollar in six years.
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Over the years, Salinas has built a public image of a libertarian who is opposed to the fiat system and inflation.
