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Musk Argues With Saylor Over Inflation, But Won’t Sell BTC and Doge

With inflation skyrocketing, many people are debating what to do to protect their assets.

In particular, investors and regular people alike are debating whether or not cryptos like Bitcoin are a good hedge against inflation. This includes tech billionaires like Elon Musk and Michael Saylor.

Inflation in the US has reached the highest level since 1982. In February, consumer prices rocketed up 7.9% on a yearly basis. The trend is a result of the Fed’s unprecedented pandemic stimulus, which could soon come to an end.

This surge in prices might soon become even worse. Namely, prices of certain commodities, including wheat and oil are skyrocketing due to sanctions on Russia.

Among those concerned was billionaire Elon Musk. The CEO of Tesla and SpaceX asked his followers what they thought about the inflation rate over the next few years. Musk shared that his companies are also feeling the rising prices.

Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics. And we are not alone.

Predictably, Musk’s tweet received some attention. Among others, billionaire and CEO of Microstrategy Michael Saylor used the opportunity to tweet about Bitcoin.

Musk-Saylor Argument

Saylor, a longstanding Bitcoin bull, shared his prognosis. He believes that consumer inflation will continue to go up, which would be good for Bitcoin.

USD consumer inflation will continue near all time highs, and asset inflation will run at double the rate of consumer inflation. Weaker currencies will collapse, and the flight of capital from cash, debt, & value stocks to scarce property like bitcoin will intensify.

As a retort, Musk said that it was not “entirely unpredictable” that Saylor would reach that conclusion. The tech CEO alluded to Saylor’s huge crypto investments, which may influence his judgment.

Billy Markus, the creator of Dogecoin, also joined in the discussion. He was more explicit in his burning of Saylor.

Name a more iconic duo than Saylor and hyperbolic bitcoin shilling.

Musk didn’t leave the argument at that. He added his own piece of financial advice for his followers – own physical things like homes of stocks.

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.

In reply, Saylor said that he thinks that they agree in principle. Both agree that people should own desirable assets. The disagreement is, in his view, only about which assets will be more desirable in the future.

Better to own scarce, desirable assets than currency derivatives in times of inflation. We agree on the general principle. The challenge lies in sorting out which things (including physical property, digital property, & corporate equity) are most scarce & desirable over time

Safe Haven Assets

The question of what assets are safe havens against inflation – and recession – are a hotly debated topic. Both housing, stocks and crypto has experienced volatility with relation to interest rates.

Typically, commodities like gold perform well in an inflationary environment and during recessions. However, they underperform during economic booms.

Crypto assets could also serve as a potential hedge against inflation, due to their scarcity. However, they could be hurt by the likely rate hikes by the Fed.

Musk Not Selling Doge

Still, Musk also added that he is not selling his Bitcoin, Ethereum or Doge. The revelation has an immediate effect on the crypto assets, all three of which shot up minutes later.

Doge rose the sharpest. The biggest meme coin shot up 5% after the tweet, from $0.11 to $0.19. It had since returned to its previous level.

Elon Musk is an influential, if not always beloved figure in the crypto space. His tweets have a noticeable influence on crypto assets. Most notably, Musk’s relentless tweeting about Doge pushed the meme coin’s price many times. Earlier, he announced that Tesla would start accepting Dogecoin as payment. As a result, Doge shot up more than 20%.

Musk is particularly enamored with Doge. The tech CEO even praised Dogecoin as better for transactions than Bitcoin. In February 2021, his company Tesla added $1.5 billion in Bitcoin, which pushed BTC price to $64,000.

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Musk’s tweets don’t just have an effect on crypto prices. After he urged his followers to “use Signal,” the shares of the instant messenger company skyrocketed.

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