In a recent tweet ,Elon Musk, Technoking of Tesla, attempted to both question the likelihood of continued inflation over the next couple of years, and soothe concerns of his followers looking for advice as it relates to dealing with inflation by stating “I still own & won’t sell my Bitcoin.”
“I still own & won’t sell my Bitcoin, Ethereum or Doge,”
Musk’s comments on crypto briefly moved the price of bitcoin higher before the digital asset pared gains. Bitcoin was nearly flat at $38,940.47 by around 7:30 a.m. ET.
The price of bitcoin is down nearly 19% in 2022, according to CoinDesk data.
With an inflation rate of 7.9% reported for the month of February 2022, this represents the highest levels of inflation since January, 1982. “Energy remained the biggest contributor (25.6% vs 27% in January), with gasoline prices surging 38% (40% in January),” reported the Trading Economics.
As a sentiment most would echo, the founder of Tesla encouraged his followers to pursue assets outside of cash when inflation becomes rampant. “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.”
Tesla and Musk made headlines in February of 2021 when they purchased $1.5 billion worth of bitcoin, however, the controversial CEO also made another kind of headline and faced some amount of backlash when Tesla decided to suspend payments in bitcoin later that year in June.
At that time, Musk stated “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”