Tesla CEO Elon Musk is revealing plans to continue holding on to the cryptocurrencies he owns as inflation in the US reaches a four-decade high.
Musk says in a tweet that Tesla and SpaceX are feeling the effects of high inflation just like other corporations and households as the cost of living and doing business rises.
“Tesla and SpaceX are seeing significant recent inflation pressure in raw materials & logistics.”
Last week, the U.S. Bureau of Labor Statistics disclosed that the Consumer Price Index, a measure of the average change in prices in a basket of goods and services over time, rose to 7.9% year-over-year in February, the highest level since January of 1982.
Pointing to a Financial Times article covering the widespread global price increases for raw materials and commodities, Musk says that Tesla and SpaceX are “not alone.”
In response to Musk, the CEO of enterprise software firm MicroStrategy, Michael Saylor, says that rising inflation and the collapse of weaker national currencies will intensify a capital flight to Bitcoin (BTC) and other scarce assets.
“US dollar 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.”
Adding to Saylor’s comment, Musk says that as “general principle” owning “physical things” is better than US dollars during times of high inflation. Musk also says that he will keep holding the three crypto assets he already owns – Bitcoin, Ethereum (ETH) and Dogecoin (DOGE).
“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 Dogecoin for what it’s worth.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/GrandeDuc