Elon Musk Reveals No Plans of Selling Off Crypto Owned

Revisiting Elon Musk's Support For Crypto Over Fiat Tweet Dated a Year Back
  • Inflation in the United States reached a 40-year high of 7.9 percent last month.
  • Russia’s conflict with Ukraine is anticipated to have long-term economic repercussions.

After a Twitter conversation with MicroStrategy’s Michael Saylor, Elon Musk said that he would hold three main crypto coins in his portfolio. The billionaires were debating the current state of the US economy and the potential for inflation shortly. 

According to Saylor:

“USD consumer inflation will continue near all-time highs, and asset inflation will run at double the rate of consumer inflation.”

Collapse of Weaker Currencies

Over the last year, the steep rise in the price of cryptocurrencies has been a crucial factor in the market’s direction. Inflation in the United States reached a 40-year high of 7.9 percent last month. Foreseeing a BTC Bull Run in late 2021, JPMorgan Chase analysts predicted inflation and the COVID-19 pandemic. For the simple reason that BTC is considered a “better inflation hedge than gold.”

According to MicroStrategy’s CEO, inflation will eventually lead to the collapse of weaker currencies. In addition, Russia’s conflict with Ukraine is anticipated to have long-term economic repercussions. Elon Musk explained his investing decisions during the conversation.

Musk stated:

“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.”

Musk added that he still “owns and won’t sell” Bitcoin, Ethereum, or Dogecoin. Cryptocurrency is being seen as a possible answer for countries like Venezuela, plagued by high inflation rates. In Saylor’s view, “scarce property like Bitcoin” will become a new source of money. 

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