in a twitter transactions Along with Microstrategy’s Michael Saylor, Tesla chief Elon Musk said he will continue to hold the three major crypto tokens.
The billionaire was discussing US markets and the potential threat of inflation in the coming years. Sailor believes that “USD consumer inflation will continue near all-time highs, with asset inflation at twice the rate of consumer inflation.”
The higher rate of inflation has been a major determinant in the trend of the crypto market over the past year. Last month, US inflation hit a 40-year high of 7.9%.
Last year, JPMorgan Chase strategists said that the BTC bull run in the second half of 2021 was driven by inflation, against the backdrop of the COVID-19 pandemic. Particularly because BTC is perceived as a “better inflation hedge than gold”.
The MicroStrategy chief believes that inflation will result in the collapse of weaker currencies. His remarks come as the ongoing Russo-Ukraine war is expected to have economic consequences.
Countries like Venezuela, which is dealing with notoriously high inflation, have begun to look at crypto as a solution to their financial problems.
Sailor predicted that capital from cash, debt and stocks would go into “scarce assets such as bitcoin.”
Musk disclosed his investment options. “As a general principle, for those seeking advice from ThreadIt’s generally better to own physical things like houses or stocks when you think inflation is high, than to make good products when the dollar is high,” he said.
Musk said he still “owns” bitcoin, ethereum, or “will not sell” Dogecoin.
that first Having said: “As I’ve said before, don’t bet the farm on crypto! True value is in creating products and providing services to your fellow human beings, not money in any form.”
DOGE price is seeing a positive effect after Musk advocated the token. Mem Coin is maintaining a 24-hour range of $0.115 – $0.116 and is up 0.7% at the time of writing.