Musk acknowledged that assets that are predominantly scarce — such as physical property and company stocks — help investors in maintaining their purchasing power against high inflations.
As rising inflation threatens to eat up further the purchasing power of the global fiat ecosystem, finding the perfect hedge against a falling economy has become the need of the hour — especially for the general public across the world.
Joining this discussion online, Tesla CEO Elon Musk asked publicly about the probable inflation rate over the next few years to gauge the notion of global investors. Sharing his thoughts on the matter, American billionaire and MicroStrategy CEO Michael J. Saylor opined that with rising inflation, he expects the capital cash flow will move away from traditional fiat into scarce assets such as Bitcoin (BTC).
In the last six months, major economies including the United Kingdom, Turkey, Russia and the United States have witnessed unprecedented inflationary pressure owing to global uncertainties and disruptions fueled by cross-border conflicts and the COVID-19 pandemic.
Complimenting Saylor’s general proposition for investing in scarce assets to counter the rising U.S. dollar inflation, Musk replied, “It is not entirely unpredictable that you would reach that conclusion.”
While the general public joined in on the discussion, dismissing Saylor’s suggestion of using BTC as a hedge against inflation due to personal investments, Musk acknowledged that assets that are predominantly scarce — such as physical property and company stocks — help investors in maintaining their purchasing power against high inflations.
As a part of the advice, Musk shared his intent to continue hodling BTC, Ethereum (ETH), Dogecoin (DOGE) amid rising inflation “for what it's worth.”
Back in December 2021, Musk confirmed that EV giant Tesla will start accepting DOGE for merchandise, as a result, spiking the meme token’s price by 25%.
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