“Diamond hands?” The whimsical techno-billionaire spoke about inflation and its consequences yesterday. He seems to consider the crypto-currencies he holds, namely Bitcoin, Ether and Dogecoin, as a good protection.
Elon Musk talks about continued inflation
As is often the case on Twitter, Elon Musk expressed his continued interest in cryptocurrencies, particularly Bitcoin (BTC), Ether (ETH) and Dogecoin (DOGE). He then asked his community about their opinion of the upcoming inflation, which is expected to 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 pressure from inflation, especially in 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, and value stocks to scarce property like bitcoin will intensify.
– Michael Saylor⚡️ (@saylor) March 14, 2022
Taylor believes that dollar inflation will continue to approach record highs, and that this will be doubly the case for other assets. He thus envisages that capital flight will benefit assets with limited issuance, such as Bitcoin. Indeed, it is impossible to create more BTC than the 21 million that are planned, unlike the dollar for example.
Musk’s Bitcoin, Ether and Dogecoin funds
Elon Musk told Michael Saylor that his analysis was predictable, and he took the opportunity to offer advice to those who would like to protect their assets as inflation has begun 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 and won’t sell my Bitcoin, Ethereum or Doge fwiw.
– Elon Musk (@elonmusk) March 14, 2022
He suggests investing in tangible assets, such as a house, or shares in companies that appear 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:
“I still hold and will not sell my Bitcoin, Ethereum [sic] or Doge. “
Elon Musk is known for his short-lived passions, and some thought his attraction to cryptocurrencies might fade over time. But it seems the billionaire is a fan for years to come.
Indeed, he’s not the only one turning his eye to crypto-currencies in these uncertain times. Bitcoin (and other crypto-currencies in general) were created precisely in order to function independently of fiat currencies, and to resist inflation. Will they then see their advent in the years to come? That’s the bet that part of the crypto community is making
