Currently, the market is witnessing heavy inflation. The Russian-Ukrainian war has majorly contributed to the plunge of shares within the global market. Moreover, this drop in stock shares is further resulting in soaring inflation within the worldwide market. Amidst such soaring inflation, global leaders and investors are attempting to predict the future of the global market. One such instance is the influential world leader and the Tesla CEO Elon Musk has marked his words on the inflating scenario.
As soaring inflation continue at a pace not seen in decades, Tesla CEO Elon Musk said to own physical assets over cash. In a tweet around midnight recently, the Tesla founder said: “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.”
Holding onto Personal Shares
Even so, Musk said he is holding onto cryptocurrencies. “I still own & won’t sell my Bitcoin, Ethereum or Doge,” he added. The comments come as the consumer price index for February rose 7.9% from a year ago, the highest level since January 1982.
Investors may turn to physical assets such as commodities during inflationary times, as inflation boosts the prices of those holdings. 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.
Current Price of Bitcoin
The price of bitcoin is down nearly 19% in 2022, according to CoinDesk data. MicroStrategy CEO Michael Saylor earlier in the Twitter thread touted crypto as an inflation play. “Weaker currencies will collapse, and the flight of capital from cash, debt, & value stocks to scarce property like #bitcoin will intensify,” Saylor said.
The two CEOs are known as prominent figures in the crypto space, both having added bitcoin to their respective company’s balance sheets. Musk’s comments in the past have regularly moved the price of digital coins.