“Diamond hands?” The whimsical techno-billionaire spoke about inflation and its consequences yesterday. He seems to consider the crypto-currencies he holds, namely Bitcoin, Ether and Dogecoin, as a good protection.
Elon Musk talks about the continuation of inflation
It was as he often does on Twitter that Elon Musk shared his continued interest in cryptocurrencies, specifically Bitcoin (BTC), Ether (ETH) and Dogecoin (DOGE). At the time, he asked his community about their opinion of the upcoming inflation, which is expected to continue to be very present in the coming years.
The billionaire confirms that his companies Tesla and SpaceX are facing inflation-related pressure right now, especially with regards to raw materials and logistics. In response, MicroStrategy CEO Michael Saylor shared his analysis of the situation, which is unsurprisingly very pro-Bitcoin:
Saylor believes that dollar-related inflation will continue to approach record highs, and that this will be doubly the case for other assets. He thus envisages that capital flight will benefit assets with limited issuance, such as Bitcoin. Indeed, we recall that it is impossible to create more BTC than the 21 million that are expected, unlike the dollar, for example.
Musk’s Bitcoin, Ether and Dogecoin funds
Elon Musk told Michael Saylor that his analysis was predictable, and he took the opportunity to offer advice to those who would like to protect their assets as inflation has begun to gallop:
He suggests investing in tangible assets, such as a home, or stocks in companies that appear to offer quality products. He also advises against keeping his funds in dollars, and confirms that he does not intend to sell his cryptocurrencies. Musk thus explains:
Elon Musk is known for his short-lived passions, and some thought that his attraction to cryptocurrencies might fade over time. But it looks like the billionaire is a fan for years to come.
In fact, he’s not the only one to turn his eye to crypto-currencies in these uncertain times. Bitcoin (and other crypto-currencies in general) were created precisely in order to function independently of fiat currencies, and to resist inflation. Will they then see their advent in the years to come? This is the bet that part of the crypto community is making.