Ricardo Salinas Bets Big on Bitcoin, Arguing It Beats Real Estate as a Long-Term Asset

Key Points

• Mexican billionaire Ricardo Salinas says 70% of his investable portfolio is in Bitcoin.

• Salinas believes Bitcoin is likely to outperform traditional assets such as real estate over time.

• He has suggested Bitcoin could reach $1 million within the next decade.

Bitcoin investors generally fall into two camps. Some are short-term traders looking to profit from sharp price swings, while others are long-term holders who believe the cryptocurrency could become a major store of value.

Mexican billionaire Ricardo Salinas Pliego, founder and chairman of Grupo Salinas, clearly belongs to the second group. Despite recent weakness in the crypto market, Salinas remains a strong Bitcoin supporter and argues that it may be a better long-term investment than real estate.

Bitcoin compared with other assets

Salinas’ argument begins with treating Bitcoin as its own asset class. Just as investors may divide their portfolios among stocks, bonds, cash, and real estate, he believes Bitcoin deserves a meaningful allocation.

Image source: Getty Images.

Many investors who own Bitcoin keep it as a small part of their portfolios, often around 1% to 2%. Salinas, however, has taken a far more aggressive position. He has even encouraged people to consider mortgaging their homes and investing the proceeds in Bitcoin, a view that remains controversial even among some long-time crypto supporters.

Salinas says he now keeps 70% of his investable assets in Bitcoin. That is an unusually concentrated bet and far above what most financial advisers would consider appropriate for the average investor.

His confidence is based largely on Bitcoin’s long-term price history. In January 2016, Bitcoin traded at about $400. At that price, an investor would have needed roughly 2,500 BTC to buy a $1 million home. With Bitcoin trading around $65,000 in 2026, the same home would require about 15 BTC.

Salinas argues that Bitcoin has preserved and increased purchasing power while fiat currencies have steadily declined in value. He points to the U.S. dollar as an example, noting that $1 today buys only a fraction of what it did in 1976.

That concern is tied to the size of the U.S. national debt, which now stands at about $39 trillion. Some analysts believe the government may ultimately rely on inflation to reduce the real burden of that debt, which could further weaken the dollar’s purchasing power over time.

Could Bitcoin reach $1 million?

Salinas believes Bitcoin could eventually reach $1 million. That outlook aligns with predictions from other prominent crypto supporters, including Michael Saylor of Strategy (NASDAQ: MSTR), Cathie Wood of Ark Invest, and Brian Armstrong of Coinbase Global (NASDAQ: COIN).

Salinas has not given a precise timeline, but he has suggested that Bitcoin could reach that level within the next decade if its long-term growth trend continues. Of course, no outcome is guaranteed, and Bitcoin remains a highly volatile asset that can experience major drawdowns.

Is Bitcoin a buy right now?

Bitcoin’s long-term performance has been extraordinary, but its future is far from certain. Investors considering Bitcoin should weigh its potential upside against its volatility, regulatory uncertainty, and the risk of allocating too much capital to a single speculative asset.

For investors like Salinas, Bitcoin is more than a digital currency. It is a long-term hedge against fiat currency debasement and a potential alternative to traditional stores of value such as real estate.

Source link