A bonfire with fiats feeding the bonfire: only millionaires and billionaires would be aware of the true value of fiats? Institutional investors and wealthy individuals are increasingly rushing to Bitcoin (BTC).
The fiats in the trash
Mexico's 2nd wealthiest, Ricardo Salinas Pliego, revealed that his investment portfolio included Bitcoins.
In a tweet of November 18, 2020, the billionaire shared a video showing banknotes thrown into trash bags: some suggest that they could be denominations of 10,000 Venezuelan bolivars issued between 2016 and 2017 before the country redenominated its currency, when the economy was hit by hyperinflation.
Pliego says that paper money has no value, so it is necessary to diversify its investments.
The billionaire went on to praise Bitcoin, explaining that it was a great alternative that protected its holder from any attempts at expropriation or manipulation by a central government.
A queue at the door of Bitcoin
Another tweet from Pliego published a few hours later recommended "The Bitcoin Standard" and revealed that 10% of his portfolio was denominated in Bitcoin.
The remaining 90% would be invested in precious metals. It is impossible to evaluate with certainty the exact amount of his portfolio, but it is highly probable that this 10% percentage represents several million dollars.
Cryptophiles obviously appreciated this tweet: one of Kraken's executive managers, Dan Held, indicated that the institutional investors were jostling to enter the market like a herd.
Pliego responded by saying that institutional investor interest in Bitcoin has been steadily increasing since the launch of Grayscale's Bitcoin Investment Trust in 2016.
Pliego is the founder and president of Grupo Salinas and would today be the 166th wealthiest man in the world.
Bitcoin is trading at USD 18,150 at the time of writing. What factors would convince the most reluctant institutional investors to buy Bitcoins? A BTC reaching new ATHs or a strong devaluation of the dollar? The BTC must now break the last resistance zone at the $18,500 level in order for bulls to run around $20,000. It is in the best interest of institutional buyers to get into the BTC race as early as possible before MicroStrategy and Grayscale devour most of the outstanding bids.
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