The richest person in the world, Elon Musk, commented on the regarding of unbelievable inflation by saying that he owns physical assets over cash. On Monday, Tesla CEO wrote on Twitter: “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.”
However, Musk Confirmed on holding onto cryptocurrencies by saying: “I still own & won’t sell my Bitcoin, Ethereum or Doge,”
This year the consumer price index rose 7.9% from last year. Which consider the highest level since 1982. During inflationary times, most investors turn to physical assets such as commodities. The reason is that the prices of those holdings rise at inflation.
But as usual, Musk’s comments did not go unnoticed. The price of bitcoin got a little higher before the digital asset pared gains.
According to CoinDesk data, from only the beginning of this year, the price of bitcoin has been down 19%.
Michael Saylor, the CEO of MicroStrategy, described crypto as an inflation play on Twitter. He said, “Weaker currencies will collapse, and the flight of capital from cash, debit, & value stocks to scarce property like #bitcoin will intensify,”
Musk and Saylor are known as prominent figures in the crypto space. Both of them added bitcoin to their respective company’s balance sheets.