This Billionaire Says Bitcoin Is a Better Investment Than Real Estate. Is He Right? | The Motley Fool
There are two types ofBitcoin(BTC+0. 73%)investors. There are short-term momentum traders who prize Bitcoin's impressive upside potential over brief periods. Then there are the long-term, buy-and-hold. . .
There are two types ofBitcoin(BTC+0. 73%)investors. There are short-term momentum traders who prize Bitcoin's impressive upside potential over brief periods. Then there are the long-term, buy-and-hold investors who view Bitcoin as the future of money. Mexican billionaire Ricardo Salinas Pliego, founder and chairman of Grupo Salinas, is firmly in the second camp. He's been a long-term believer inBitcoin. Even amid the crypto market's recent slide, he has remained undeterred. In fact, he still thinks Bitcoin is a better investment than real estate, making it a very attractive long-term buy. Bitcoin versus other asset classesTo understand why Salinas is so bullish on Bitcoin, you first have to view crypto as a stand-aloneasset class. Just as you mightallocate a specific percentage of your portfolioto stocks, bonds, or real estate, you could also allocate a specific percentage to Bitcoin. Image source: Getty Images. While most investors might be content to hold 1% to 2% of their portfolio in Bitcoin, Salinas is aBitcoin maximalist. He has even advised people to mortgage their houses, and then invest that money into Bitcoin. That's a bit much, even for longtime Bitcoin bulls. To prove his point, he now holds a head-spinning 70% of his investable portfolio in Bitcoin. That's admittedly a huge bet on the future of Bitcoin, and way beyond the recommended range for most investors. Today's Change(0. 73%) $457. 67Current Price$63337. 00However, this faith in Bitcoin is based on historical precedent. In January 2016, Bitcoin traded for just $400. If you wanted to buy a $1 million house, you'd need to spend 2,500 BTC. In 2026, Bitcoin now trades for $65,000. You now only need to spend 15 BTC to buy that same house. Bitcoin continues to appreciate in value, while other currencies decline in value. Salinas points to the example of the U. S. dollar. Today, $1 only buys 15% of what it did back in 1976. Over time, Salinas expects it to lose even more of its purchasing power. That's not too far-fetched when you consider that the U. S. currently has a debt load of $39 trillion. The national debt is now bigger than the entire U. S. economy. The only way out, according to many analysts, is to print more money and inflate away the debt. However, that will only further drag down the dollar's value. Can Bitcoin really hit $1 million?According to Salinas, Bitcoin could reach $1 million. That concurs with estimates made by the likes of Michael Saylor ofStrategy(MSTR3. 46%), Cathie Wood of Ark Invest, and Brian Armstrong ofCoinbase Global(COIN1. 00%). All have set $1 millionprice targetsfor Bitcoin. The Mexican billionaire won't give an exact date, but if Bitcoin's exponential growth continues, it could happen within the next decade. Nothing is guaranteed, but that rise would make it a promising investment at today's bargain price of just $65,000.