Elon Musk advises that it is better to own “physical things” such as houses and stocks, but adds that will not sell your holdings of bitcoin, ether and dogecoin.
Musk, CEO of Tesla and SpaceX, and the world’s richest person, has said that it is better to own physical things instead of US dollars when inflation is high. However, it seems to make an exception for cryptocurrencies.
In a Twitter thread On inflation, Musk has said the following: “As a general principle, for those seeking advice in this thread, it’s generally better to own physical things like a house or stock in companies you think make good products than dollars when inflation is high.” high”.
And he added: “I still own and will not sell my bitcoin, ethereum or doge fwiw.”
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.
I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.
— Elon Musk (@elonmusk) March 14, 2022
Inflation in the United States reached 7.9% year-on-year in February, the highest since 1982, according to the Bureau of Labor Statistics. The situation is similar in Spain: inflation shot up in February to 7.6%, the highest since 1986, driven by the rise in the price of gasoline, electricity and cereals.
Tesla and SpaceX are “seeing significant recent inflationary pressure in raw materials and logistics,” Musk said this Monday.
Musk announced in May 2020 that he planned to sell “almost all” of his physical belongings, including his multimillion-dollar property portfolio. He sold the last house he had left in December 2021.
The billionaire businessman is a proponent of cryptocurrencies, albeit with caveats. He has regularly voiced his support for dogecoin and discussed the merits of cryptocurrencies with leading figures in the tech industry.
Tesla announced that it had invested about $1.5 billion in bitcoin in early 2021, to be used as an inflation hedge.
Tesla’s share price has fallen 35% this year, causing Musk’s fortune to shrink by a quarter, but he remains the world’s richest person, with a net worth of about $206 billion. dollars, according to Bloomberg Billionaires Index.
Commodity prices were already on the rise due to supply chain disruptions as the world economy recovers from the pandemic. Russia’s invasion of Ukraine last month has added to supply strains in markets of energy, metals and cereals, since both countries are the main suppliers.