The founder of Tesla, Elon Musk, disclosed which assets he believes are valuable at a time when inflation is high. Musk also said that he would not sell his cryptocurrencies: Bitcoin, Ethereum, and Dogecoin.
Elon Musk discusses global inflation
Musk tweeted that Tesla is under pressure from rising inflation. He also shared his opinion on what assets are more reliable when the value of money falls.
According to a recent article from the Financial Times, global commodity prices are on track for the biggest weekly increase in more than 50 years as a consequence of the escalating conflict between Russia and Ukraine.
High inflation data is also reflected in the U.S. Consumer Price Index. The National Bureau of Labor Statistics released new data on March 10, and the index, which is largely used to measure inflation, was 7.9. This is the most in decades.
MicroStrategy CEO Michael Saylor responded to Musk’s post:
Consumer inflation in the United States will remain at record highs, while asset inflation will be twice as high. Weaker currencies will depreciate, and capital will flee from cash, debt, and valuable equities to scarce assets like bitcoin.
In response, Musk said that Saylor “came to such a conclusion” since they have over 125,000 bitcoins and their CEO is one of the most renowned cryptocurrency supporters.
Musk also elaborated on which assets he believes are valuable in this situation:
For those seeking advice in this thread, it is generally better to own physical assets, such as a house or shares of companies that you think produce good products, than dollars where inflation is high.
Additionally, he pointed out that he does not plan on selling his bitcoins, ethers, or dogecoins.
We know that cryptocurrencies are doing quite well at a time when the first war in three decades broke out in Europe, and inflation is reducing Americans’ savings, but it still remains unclear how bitcoin will behave when war breaks out between the U.S. and China. This war could lead to World War III.
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