Tesla founder Elon Musk offered some basic financial advice on Monday as U.S. inflation hit four-decade highs – noting that the public should invest in physical assets, even as he announced he will continue to take riskier bets on cryptocurrencies would.
Musk discussed his view on how to deal with the difficult financial conditions after asking his supporters to share their “thoughts on the likely rate of inflation over the next few years.” Inflation hit 7.9% in February as higher basic necessities such as groceries and fuel weighed on US household budgets.
“As a general principle, for those seeking advice from this thread, owning physical things like a house or stocks in companies you think make good products is generally better than dollars when inflation is high.” is,” Musk tweeted.
The billionaire added that he has no plans to sell his cryptocurrency holdings, despite their reputation as riskier assets that tend to sell off when the market is volatile.
“I still own my Bitcoin, Ethereum or Doge fwiw and will not sell them,” Musk said.
Leading cryptocurrencies briefly surged before leveling off following Musk’s comments. Bitcoin was trading unchanged at $38,912 early Monday morning. Ethereum and Dogecoin prices were also unchanged.
Musk’s initial question on Twitter prompted a response from MicroStrategy CEO Michael Saylor, another prominent cryptocurrency that has done so argues that bitcoin is more valuable than gold.
“USD consumer inflation will continue to near all-time highs and asset inflation will be double consumer inflation. Weaker currencies will collapse and capital flight from cash, debt and value stocks to scarce commodities like #Bitcoin will intensify,” Saylor wrote.
“It’s not entirely unpredictable that you’d come to that conclusion,” Musk joked in response.
Musk addressed this as well the struggles of its companies with inflationnoting the high prices for raw materials during the Russia-Ukraine war.
“Tesla and SpaceX are seeing significant inflationary pressures in commodities and logistics recently,” he wrote.
Musk is a prominent cryptocurrency advocate and has helped Dogecoin gain traction as an investment following its origins as a meme token. Last May, Musk had already stated that last May he had no plans to sell his Dogecoin holdings.
Tesla has also embraced cryptocurrencies under Musk’s leadership. Earlier this year, the electric car maker started accepting Dogecoin as payment for some items on its website.
Tesla also bought $1.5 billion worth of bitcoin in early 2021.
https://nypost.com/2022/03/14/elon-musk-says-he-wont-sell-crypto-despite-inflation/ Elon Musk Says He Will “Not Sell” Crypto Despite Inflation