Elon Musk, Tesla’s CEO, expressed his concern about the rising rate of inflation as a result of the escalating Russian-Ukraine crisis in a tweet on Monday.
He would not, however, sell his Bitcoin, Ethereum, or Doge assets for what they are worth, despite rising inflation.
Musk reiterates his bullish position on cryptocurrency, citing the crypto and blockchain market’s future potential. Interestingly, cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) all saw a fast gain after the tweet, with a modest increase in the last hour.
Bitcoin, Ether, and Doge are all up after Elon Musk stated that he will not be selling them.
In the tweet, Elon Musk states that he owns Bitcoin, Ethereum, and Doge and has no plans to sell them. He also advises that when inflation is strong, it is better to own real assets such as a home or stock in reputable companies that make good products rather than dollars.
“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.”
He’d asked a question on the expected pace of inflation over the next few years on Twitter this time.
Michael Saylor, the CEO of MicroStrategy Inc. and a vocal proponent of Bitcoin, responded:
“Weaker currencies will collapse, and the flight of capital from cash, debt, & value stocks to scarce property like #bitcoin will intensify.”
Musk said, “It’s not entirely unpredictable that you’d reach that conclusion.” MicroStrategy suffered a $147 million impairment charge in the fourth quarter as the business had to write down its Bitcoin position due to the market drop.
Bitcoin (BTC) is currently trading at $38,544, Ethereum (ETH) is at $2,570, and DOGE is at $0.11. As prices continue to move sideways, the crypto market cap remains range-bound near $1.72 trillion.
The crypto market has been under further pressure ahead of reports that the European Union is working on a measure that would outlaw all Proof-of-Work (PoW) cryptocurrencies due to environmental concerns. The crypto world is awaiting the outcome of a vote on the controversial Markets in Crypto Currencies (MiCA) framework, which includes a provision prohibiting the usage of all energy-intensive digital assets.
Musk on Rising Inflation
Elon Musk said on Sunday that raw materials and logistics are causing significant inflationary pressure for the electric carmaker Tesla and his rocket company SpaceX.
Musk recently asked about the inflation rate prediction in a tweet, noting that his companies “are not alone,” after retweeting an article claiming that the Ukraine-Russia conflict has pushed commodities prices to their highest levels since 2008.
The price of metals used in automobiles has risen as a result of Russia’s invasion of Ukraine, from aluminum in bodywork to palladium in catalytic converters to high-grade nickel in electric vehicle batteries, and drivers are likely to foot the bill.