Elon Musk talks about continued inflation
It is as often on Twitter that Elon Musk shared of his persistent interest in cryptocurrencies, in particular Bitcoin (BTC), Ether (ETH) and Dogecoin (DOGE). He then asked his community about their opinion of future inflation, which should continue to be very present in the coming years.
What are your thoughts about probable inflation rate over next few years?
— Elon Musk (@elonmusk) March 13, 2022
The billionaire confirms that his companies Tesla and SpaceX are currently facing inflationary pressure, particularly with regard to raw materials and logistics. In response, MicroStrategy CEO Michael Saylor shared his analysis of the situation, which is unsurprisingly very pro-Bitcoin :
USD consumer inflation will continue near all time highs, and asset inflation will run at double the rate of consumer inflation. Weaker currencies will collapse, and the flight of capital from cash, debt, & value stocks to scarce property like #bitcoin will intensify.
— Michael Saylor⚡️ (@saylor) March 14, 2022
Saylor believes that dollar-linked inflation will continue to approach record highs, and that will be doubly the case for other assets. He thus envisages that capital flight will benefit to assets whose issue is limited, such as Bitcoin. We remind you that it is impossible to create more BTC than the 21 million that are planned, unlike the dollar for example.
? To go further – Why are there 21 million bitcoins?
Musk’s Bitcoin, Ether and Dogecoin Funds
Elon Musk told Michael Saylor that his analysis was predictable, and he took advantage of it to give advice to those who would like to protect their assets as inflation began to gallop:
As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.
I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.
— Elon Musk (@elonmusk) March 14, 2022
He thus suggests encourage investment in tangible elements, such as a home, or shares in companies that seem to offer quality products. He also advises against keeping his funds in dollars, and confirms that he does not intend to sell his cryptocurrencies. Musk explains as follows:
“I still hold and i will not sell my Bitcoin, my Ethereum [sic] or my Doge.»
Elon Musk is known for his fleeting passions, and some thought his love of cryptocurrency might wear off over time. But it looks like the billionaire is going to be an amateur for years to come.
He is not the only one to turn his gaze to cryptocurrencies in these uncertain times. Bitcoin (and other cryptocurrencies in general) were created to operate independently of fiat currencies, and to resist inflation. Will they then see their advent in the years to come? This is the bet that part of the crypto community is making.
? On the same subject – Tesla now accepts payment in Dogecoin (DOGE)
Image source: Daniel Oberhaus via Flickr (CC BY 2.0)
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About the Author : Marine Debelloir
Deputy editor on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
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