Tesla and SpaceX pioneer Elon Musk said that he won’t sell his Bitcoin, Ether, and Dogecoin while advising his followers to hold ‘physical things’ like homes and stocks amid high inflation. Musk initially tweeted asking for opinions on the inflation rate which generated a huge response and raked roughly 128k likes at the time of this post.
In a series of tweets, discussing inflation, Musk said: “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.”
He added: “I still own & won’t sell my Bitcoin, Ethereum, or Doge.”
—Elon Musk (@elonmusk) March 14, 2022
In just a few minutes after the tweet, the value of DOGE briefly surged by 6.5%, the highest in 4 days at $0.119. The price has since retraced by almost 6% and is trading at $0.1132, press time.
Elon Musk sees significant recent inflation pressure
The billionaire entrepreneur is a big advocate of cryptocurrencies and an avid dogecoin supporter. While discussing the merits of crypto with leading figures from the tech industry, Elon Musk tweeted, “Tesla and SpaceX were “seeing significant recent inflation pressure in raw materials & logistics.”
For the record, inflation in the US hit 7.9% year-on-year in February, its highest since 1982, according to data provided by the Bureau of Labor Statistics. The conflict between Russia and Ukraine as well as high inflation in the U.S. and Europe has already become a real threat to the capital of tens of thousands of private investors around the world.
Many investors are looking for ways to protect their savings from inflation using cryptocurrencies. Some however are skeptical. Chad Steinglass, head of trading at CrossTower termed crypto more like a speculative asset, rather than a defensive one.
Bitcoin- A digital gold?
That said, volatility is nothing new in the world of digital currency. Even the most stable cryptocurrencies, like BTC and ETH, can rise and fall by tens of percent within a day. In the longer term, this trend will develop which will not only increase the price of Bitcoin but also result in a gradual decrease in its volatility.
Jeff Mei, director of global strategy at digital asset platform Huobi Global believes that Bitcoin is a great hedge against inflation because there is only 21 million Bitcoin available once they’re all mined.