The unprecedented monetary stimulus unleashed by the Federal Reserve and other major central banks to help combat the economy-destroying COVID crisis has unleashed hyperinflation, which has resulted in the spiraling death of fiat.
On Christmas day, Ricardo Salinas Pliego – Mexico’s third-richest man – tweeted to his million followers why they needed to ditch fiat currencies and purchase Bitcoin.
“A hug and all the success of the universe for all of you, may God give you health, desire to live and get ahead, the world belongs to dreamers!
“Stay away from FIAT money .. it’s fake money made of paper and lies. The Central Banks are printing more money than ever before. Invest in Bitcoin,” Pliego said.
Pliego quoted market commentator Holger Zschaepitz’s ever-expanding Federal Reserve balance sheet chart. He called fiat a “mega fraud.”
Para los que no entendieron mi segundo regalo navideño de ayer…
Pónganse almejas! El Fiat es un mega fraude. https://t.co/RosuvTCHLC
— Ricardo Salinas Pliego (@RicardoBSalinas) December 26, 2021
The billionaire sounded frustrated and also said, “politics leaves NOTHING GOOD for an entrepreneur, I better dedicate myself to continue generating prosperity and job opportunities for our collaborators … When you enter politics, you realize that enemies are real and friends are lies.”
Pliego has been investing in Bitcoin for years and has called out the central banking scam. He said in November 2020 that he invested a substantial portion of his liquid assets in the world’s biggest cryptocurrency.
“Many people ask me if I have bitcoins,” Salinas said at the time, who has a $13.4b fortune through his stakes in retail, banking and broadcast businesses, according to the Bloomberg Billionaires Index. “YES. I have 10% of my liquid portfolio invested it,” he tweeted last year.
The billionaire is right – the purchasing power of currencies has lost tremendous value as central banks print trillions of dollars to prevent the global economy from imploding.
For example, one U.S. dollar could buy ten beer bottles in 1933. Today, as Visual Capitalist Govind Bhutanda notes, it’s the cost of a small McDonald’s coffee.
In other words, the dollar’s purchasing power – its value in terms of what it can buy – has decreased over time as price levels have risen. Bitcoin fairs better than fiat because it’s limited in numbers and serves as an inflation hedge.