“Are those diamond hands?” Yesterday, the eccentric techno-billionaire discussed inflation and its repercussions. He appears to believe that the cryptocurrencies he owns, especially Bitcoin, Ether, and Dogecoin, provide adequate security.
Elon Musk discusses the possibility of sustained inflation.
Elon Musk has frequently indicated his interest in cryptocurrencies, particularly Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE), on Twitter. He then polled his community on their thoughts on future inflation, which is expected to remain high in the next few years.
What are your thoughts about probable inflation rate over next few years?
— Elon Musk (@elonmusk) March 13, 2022
The entrepreneur says that his companies, Tesla and SpaceX, are experiencing inflationary pressures, notably in raw materials and logistics. MicroStrategy CEO Michael Saylor responded by sharing his perspective of the issue, which is unsurprisingly 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 reach all-time highs, and that this will be true for other assets as well. As a result, he believes that capital flight will benefit assets with restricted output, such as Bitcoin. We remind you that, unlike the dollar, it is impossible to produce more BTC than the intended 21 million.
Musk’s Bitcoin, Ether, and Dogecoin holdings
Elon Musk told Michael Saylor that his analysis was foreseen, and he used it to provide advice to anyone who wanted to protect their assets when inflation began to soar:
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
“I still hold and will not sell my Bitcoin, my Ethereum [sic] or my Doge. »
Elon Musk is notorious for his transitory interests, and some speculated that his enthusiasm for cryptocurrencies would fade with time. However, it appears that the billionaire will remain a novice for the foreseeable future.
In these uncertain times, he is not the only one who has turned to cryptocurrencies. Bitcoin (and other cryptocurrencies in general) were designed to function independently of fiat currencies and to be resistant to inflation. Will they then make their appearance in the next years? This is the wager that a portion of the cryptocurrency community is placing.