The CEO of Tesla and SpaceX tweeted that he was not selling any of his cryptos in this time of high inflation.
- On Sunday, billionaire Elon Musk tweeted to his 77.9 million Twitter followers that he wouldn’t sell any of his cryptocurrency holdings “when inflation is high.”
- The latest data from the Labor Department shows that the primary indicator of inflation – the consumer price index – rose 7.9% in February, marking the highest level in 40 years and the 10th month in a row, it was above 5%.
- In the past, Musk has publicly revealed that he owns Bitcoin, Ethereum, and Dogecoin.
On Sunday, billionaire Elon Musk tweeted to his 77.9 million Twitter followers in an exchange about the impact of high inflation on various asset classes. Musk announced that he believes cryptos are a good investment and will not be selling any of his cryptocurrency holdings.
“As a rule of thumb, for those looking for advice on this thread, it’s usually better to own physical assets like a house or shares in companies that you believe make good products, than dollars when inflation is high I still own and will not sell my Bitcoin, Ethereum or Doge fwiw [for what it’s worth]“, Musk said in his tweet.
The Tesla and SpaceX CEO has publicly shared before that he owns Ethereum, Dogecoin and Bitcoin. The Tesla company is the second largest non-crypto-exchange bitcoin-owning company in the world with 38,300 bitcoins on its balance sheet, second only to MicroStrategy.
Inflation continues to rise
Although Musk is not a financial analyst, his own asset management practices in times of rising inflation make sense. All he was saying was that whatever assets you invest in, they have to produce returns above inflation, or you lose money. Given the recent and persistent trend in inflation, this becomes more difficult.
In fact, Labor Department data released last week shows that the primary indicator of inflation – the consumer price index – rose 7.9% in February, marking the highest level in 40 years and the 10th consecutive month, it was above 5%.
The three cryptos mentioned by Musk have all produced returns well above inflation in 2021:
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Although this is not financial advice and investors should always do their own research by investing only what they can afford to lose, the richest man on the planet views crypto as a valid store of value during this period of record inflation. He might be on to something.
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