Elon Musk asked the community’s thoughts about the high inflation
Tesla billionaire Elon Musk shared via Twitter that he “still own & won’t sell” his Bitcoin, Ethereum and DOGE. Furthermore, he gave his advice in the high inflation period: “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.”
Both Tesla and SpaceX are under pressure from rising inflation, which is resulting in high commodity prices, shared Elon Musk.
The Consumer Price Index in the United States reflects high inflation rates. The data were reported by the country’s Bureau of Labor Statistics on March 10th, and the inflation index came in at 7.9%, the highest in decades. Even before Russia’s invasion of Ukraine caused a dramatic surge in energy prices, rent, fuel, and food expenses had risen.
Michael Saylor, CEO of MicroStrategy which has purchased over 125,000 BTC, shared his prediction below Elon’s Twitter post: “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.“
Following Elon Musk’s tweet, meme coin DOGE’s price reached as high as $0.1220. Automated trading algorithms that follow token mentions from popular accounts on social media platforms are maybe the reasons for the rise.
On Wednesday, the Federal Reserve is expected to raise interest rates for the first time since the coronavirus pandemic destroyed the global economy, in an effort to control skyrocketing inflation.
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