Mexican billionaire Ricardo Salinas Pliego is making waves, claiming Bitcoin is a far better investment than real estate. He’s not just talking the talk; he’s walking the walk, with roughly 70% of his assets in Bitcoin and related investments.
Real Estate: More Expense Than Investment?
Salinas calls owning a home an “expense,” not an investment. He argues that property taxes, maintenance, and the general hassle of homeownership outweigh any potential gains. He points out the immobility of real estate and the difficulty of quickly selling a property. In short, he thinks the traditional view of real estate as a safe, reliable investment is outdated.
Bitcoin’s Explosive Growth
Salinas’s claim isn’t entirely unfounded. While real estate saw a 36% return between 2017 and 2024, Bitcoin exploded by nearly 2,000% during the same period. Of course, Bitcoin’s volatility is a significant risk factor, but the numbers are hard to ignore, especially with major institutions now investing in it. Plus, Bitcoin requires no repairs, no taxes (beyond capital gains), and is far easier to buy and sell quickly.
A Slowing Housing Market
Adding fuel to Salinas’s argument is the slowing US housing market. JPMorgan predicts only a 3% increase in home prices in 2025, a modest rise considering inflation. Decreasing demand, driven by higher interest rates and economic uncertainty, is pushing investors to seek alternative options. Bitcoin, with its low maintenance and growing adoption, is looking increasingly attractive.
Salinas’s Bitcoin Bet
Salinas’s significant Bitcoin holdings speak volumes. For a businessman heading major corporations like Grupo Salinas and Grupo Elektra, this is a bold statement about his confidence in Bitcoin’s future. He’s been a Bitcoin advocate for years, but this level of commitment is noteworthy.