Elon Musk, the richest man in the world, has taken to Twitter in support of cryptocurrencies once again. The Tesla CEO revealed on Twitter that Tesla was under pressure as a result of the increasing inflation. He also mentioned that SpaceX was also coming under pressure due to the rise in commodity prices.
In his tweet, Musk posted a link to a Financial Times article discussing the rise in commodity prices internationally. According to the article, global commodity prices were on track to see the biggest rise in 50 years following the invasion of Ukraine by Russia last month.
High commodity prices aren’t the only evidence of high inflation. The US Consumer Price Index also reflected high inflation numbers. According to 0the Bureau of Labor Statistics, the numbers released on March 10th showed that inflation was at a high 7.9%. This is the highest it has been in decades.
Musk’s Inflation Proof Assets
When the richest man in the world tweets, the whole world stops to listen. As expected, Musk’s tweet about the hard times ahead for both companies triggered conversation on the Twitterverse. Mark Saylor, CEO of MicroStrategy was quick to reply to comment on the tweet by Tesla CEO. According to Saylor, inflation is expected to continue rising and will probably hit all-time highs in the next couple of weeks. It is also expected that the rate of asset inflation will be double that of consumer inflation. If the situation continues as is, weaker currencies are bound to collapse. Saylor expects that many investors will flee from investing in value stocks to investing in more scarce property such as cryptocurrencies and particularly Bitcoin.
It is worth mentioning that Saylor’s company, MicroStrategy, holds over 125,000 BTC. He is also known for being one of the most vocal supporters of cryptocurrencies. Musk, who has also been a vocal supporter of cryptocurrencies, shared Saylor’s opinion on cryptocurrencies being a good investment during inflation. According to the Tesla CEO, cryptocurrencies are a good asset to hold under the current rising inflation. He also added that having physical assets such as a home or stock in companies that are known to have a good product were better investments than having dollars while inflation continues to rise.
No plans of selling cryptocurrencies
Musk, who has invested heavily in cryptocurrencies, stated that he had no plans of selling his cryptocurrency. He has currently invested in Bitcoin, Ethereum and of course Dogecoin. Musk has been vocal in the recent past on his support for Dogecoin and other cryptocurrencies. He has stated that the decentralized nature of cryptocurrencies could be the remedy that the world needed in order to prevent governments from interfering with money supplies.
The conflict in Ukraine is proving his words to be true as Ukrainians turn to cryptocurrencies for day to day transactions. People around the world are also using cryptocurrencies to help civilians in Ukraine.