Musk told his Twitter followers that he wouldn’t be selling his bitcoins and revealed what else he thought to hold when inflation would be high.
The Richest Man in the World
World’s richest man, Elon Musk, stated that acquiring assets like Bitcoin, Ether, and Dogecoin is the best way to protect one’s wealth from inflation compared to holding cash.
In one of his recent tweets, Elon Musk urged us all to prepare for rising inflation that could affect the economic situation in the United States and Europe. He believes that owning assets like gold, land, and artworks is a good idea when prices are rising.
High Commodity Prices
It is a fact that production costs are increasing worldwide. The gradual rise in inflation has led to high commodity prices, which will drive up Tesla and SpaceX production costs.
Musk shared an article from the Financial Times covering the fact that global commodity prices are on track for the biggest weekly rally in over 50 years due to the war between Russia and Ukraine. MicroStrategy CEO Michael Saylor answered Musk’s comment:
USD consumer inflation will continue near all-time highs, and asset inflation will run at double the consumer inflation rate. Weaker currencies will collapse, and the flight of capital from cash, debt, & value stocks to scarce property like Bitcoin will intensify.
Consumer Price Index in the US
These high inflation rates can be critical for the US economy. The rise in the consumer price index is a sign that prices in the US are steadily rising, making it harder for people to buy what they need to survive.
The US CPI was released on March 10, and the figure highlighted inflation at 7.9%, the highest level in decades. Musk responds to Saylor’s comment above by saying he’s not surprised at his conclusion. Saylor owns over 120 bitcoin and is one of the most active cryptocurrency supporters.
Physical Things Represent an Advantage
Nonetheless, the Tesla, Inc. founder also shared his thoughts on what assets he thinks are good to hold in the current situation:
As a general principle, it is generally better for those looking for advice from this thread to own physical things like a home or stock in companies you think make good products than dollars when inflation is high.
He stated that he had no intention of selling his investments and was behind cryptocurrencies. He also stressed that he would not be selling his Bitcoin, Ethereum, or Dogecoin any time soon.
Conclusion
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