The CEO of Tesla and SpaceX asked his 77.7 million Twitter followers what they felt about the “probable inflation rate” in the next few years. When MicroStrategy CEO and well-known Bitcoin supporter Michael Saylor weighed in, predicting that US inflation would rise and demand for scarce assets such as Bitcoin would spike. Musk answered by admitting that Saylor’s prediction was “not entirely unpredictable.”
What are your thoughts about probable inflation rate over next few years?
— Elon Musk (@elonmusk) March 13, 2022
He then went on to discuss how, during times of rising inflation, keeping assets is seen as a better option than saving cash. Musk confirmed his crypto holdings in the same tweet, adding that he would keep his assets.
Musk previously claimed that he personally owns the two leading crypto assets, including Dogecoin, during a conversation with Jack Dorsey and Cathie Wood at The Word conference in July 2021. Musk, the world’s wealthiest person with an estimated net worth of more than $220 billion, has never disclosed how much cryptocurrency he owns, but he has said that the huge majority of his money is invested in stocks for his companies.
However, his most recent report on his cryptocurrency holdings suggests that he sees the asset class as a long-term investment opportunity. Musk has already expressed his belief in the potential of cryptocurrency. When the market plummeted due to exhaustion and fears of China’s Bitcoin mining ban, he tweeted that Tesla has “diamond hands,” implying that it would keep Bitcoin on its balance sheet.
Musk’s remarks came after the United States’ inflation rate hit a 40-year high of 7.9 percent last week. With Bitcoin being marketed as an inflationary hedge, the U.S. macroeconomic environment has been a hot subject of discussion in the crypto world in recent weeks. The market, on the other hand, had no reaction to the news. Last week, Bitcoin and most other assets remained flat, following a months-long pattern of sluggish price activity in the crypto market.