November 24, 2022
  • November 24, 2022

Mexican billionaire says bitcoin is a better option than fiat money

By on February 3, 2022 0

Bitcoin is a better option than fiat currency, Mexico’s third-richest man, Ricardo Salinas, said in an interview. Bitcoin, Salinas said, is elusive and can be transferred instantly around the world, unlike fiat and the gold standard.

“The gold standard has always been subject to government intervention,” Salinas said. “And fiat allows you to finance infinitely.”

The peer-to-peer nature of bitcoin makes digital currency much harder to ban or control, as the transfer of value through the network does not involve an intermediary who could be subpoenaed by the government. This property, coupled with its supply limit of 21 million coins, allows bitcoin holders to preserve their long-term wealth more sovereignly than is possible with fiat currencies or even gold.

“Everything we have in fiat is 100% seizable by the government,” Salinas added. “It’s not in the government’s interest to make it easy for people to use bitcoin.”

Salinas is the founder and president of Grupo Salinas, a cohort of companies in the telecommunications, media, financial services and retail sectors.

“We were the first to accept bitcoin in our stores,” Salinas said, adding that his companies will soon add support for receiving transactions through the Lightning Network, the Layer 2 scaling solution. bitcoin for cheaper and faster payments.

When asked what people should focus on when starting to learn about Bitcoin, Salinas said that acquiring a good basic knowledge of the history of money and fiat currency will help people to understand the value proposition of BTC.

“There’s a lot of confusion about money in general,” Salinas said. “Ultimately, it all comes down to the fact that human beings do very well when we cooperate and work together. Cooperation necessarily means division of labor and specialization, and that must bring trade.

The entrepreneur added that money emerged as a way to improve the trade of goods between people, as it provided a more liquid and ubiquitous form of value, much better than barter, the original way of doing business. . Bitcoin, Salinas explains, is a better currency than fiat and gold because it brings additional qualities.

“Gold is difficult to transport and difficult to store,” he said. “The price of gold has been manipulated quite easily by central banks around the world. Bitcoin comes across as a new asset that’s harder to manipulate, it’s a better asset because you can sell it easier and you can transport it and store it basically for free.

However, Salinas warned investors looking for a quick way to make money that he views Bitcoin as a long-term investment, similar to a savings account.

“Don’t expect to make a quick 30 day buck,” Salinas said.