Bitcoin 2022: Billionaire Capital Allocators Session

This admittedly was one of my favorite sessions with Ricardo B. Salinas (Grupo Salinas), Orlando Bravo (Thoma Bravo), Marcelo Claure (currently Claure Capital and previously of Softbank Group International), Dan Tapiero(10T Holdings), with Greg Foss(Strategic Initiatives) presiding.  Greg Foss states that Bitcoin is the “best asymmetric investment opportunity in his 30 years of managing risk.”

Ricardo Salinas states that it is one thing to hear about hyperinflation and another thing to live through it. He has a big grudge against Fiat and he calls it “Fiat Fraud. There are many flavors of Fiat around the world with all of it’s promotors but it is all a Fraud.” He explains how he lived through hyperinflation in Mexico in the 1980s. He now sees the US headed in the same direction. 

Orlando Bravo stated that he is proud to be at the conference in front of nearly 30,000 people that have created a fair financial system that competes against monopolistic systems. Orlando stated that “you don’t have to be an economist to see what is going on with inflation.” The fiscal policy makers in the US issued a 2 trillion dollar package following a trillion dollar package. Together it is 26% of GDP. You can make all the excuses about supply chain, etc but inflation is the result of devalued currency. Bitcoin represents a competitive system to the government, monopolistic currency systems.

Marcelo Clauro says that the Fed is trying to come in on a soft landing but we are at the mercy of the Fed. He has increased his allocation to Bitcoin. Bitcoin is the only investment today where the potential of gains is larger that the potential of loss. Bitcoin is an asymmetrical bet. 

Dan Tapiero said that the typical 60/40 allocation between stocks and bonds used by money managers worked well for decades but it is not a good allocation moving forward due to negative yielding bonds. He is starting to see first hand that pension funds are starting to invest into Bitcoin. 

Fidelity has stated recently that in the crypto space Bitcoin is the asset of choice. 

Orlando says 6 months ago the large institutions started coming into Bitcoin. He says they need to make money and once they do the floodgates will open and you will get another step function in value. Dan says that once these large funds come in the central banks and governments are next. Ricardo says that with $200 trillion in bonds, bonds are terrible investments. The best thing that can happen to you is that you get your currency back. Ricardo has 60% in Bitcoin and Bitcoin equities and 40% in hard asset stocks. Marcelo quit his job at SoftBank to spend all his time studying Bitcoin. 

Marcelo stated that Bitcoin today is like being invested in the internet in 1994. Greg Foss stated that we have a better investment on a risk adjusted basis today than in 2015 when bitcoin was under $1,000. Don’t overthink it as Fiat debasement is a mathematical certainty. Ricardo Salinas says hyperinflation damages two groups of the most vulnerable people. Older people that have saved their whole lives and are depending on a pension and poor people that don’t have assets are the most affected. Ricardo then gave us one of the key quotes from the conference:

“We should be able to point the finger at who is responsible for this because if you and I go around printing  money we get put in jail for fucking  counterfeiting but they get appointed to the Treasury. “

Dan Tapiero said that this Bitcoin is bigger than anything he has ever studied because Bitcoin represents the Truth. 

Greg Foss wrapped up the session by plugging an educational website where the problems of the current financial system are exposed.

Bitcoin is hope and truth. 

Some bad language on the video below so you may not want to listen to around grandma or your children, but it is a good session.

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