BTC Gets Support from Elon Musk, Michael Saylor Amid Risks of Rising Inflation : Tech Daily
The global economic system seems to be undergoing a massive shift with geopolitical tensions riding high around the world. In a recent chat on Twitter, while Elon Musk and Michael Saylor backed Bitcoin (BTC) as a hedge against a rise in inflation, Musk also advised people to invest in physical assets to stay ahead of probable inflation curve. Saylor, on the other hand, predicted that USD consumer inflation will remain near all-time highs and that BTC’s scarcity will drive in capital and further investments into the cryptocurrency.
Musk, the CEO of Tesla and SpaceX opened a Twitter discussion around the probable inflation rate that could be observed over the next few years, in the wee hours of Monday, March 14.
The multi billionaire highlighted that he will continue holding on to his Bitcoin, Ether, and Dogecoin amid rising inflation for what it’s worth.
Replying to Musk’s tweet, Saylor predicted that the US dollar will witness consumer inflation nearing all-time highs, and asset inflation will run at double the rate of consumer inflation.
The CEO of business intelligence firm MicroStrategy further added that investments in Bitcoin will ‘intensify’ because of its scarcity.
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.
— Michael Saylor:zap:️ (@saylor) March 14, 2022
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.
I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.
— Elon Musk (@elonmusk) March 14, 2022
The annual inflation rate in the US increased from 3.2 percent in 2011 to 4.7 percent in 2021, indicating that the purchasing power of the dollar has weakened in recent years, as per research firm Statista.
The COVID-19 pandemic, along with the ongoing Ukraine-Russia war altering the dynamics of international politics are some of the reasons why inflation risks are being predicted by industry leaders.
Just last week, Saylor called Bitcoin a “miraculous limited resource” unlike gold, real estate, equities, and bonds among other priced resources noting that there will only be 21 million Bitcoins to ever exist.
Within 13 years of its existence, 90 percent of the 21 million Bitcoins have already been mined. That makes for 18.9 million units.
Last year, a report by Blockchain.com claimed that it will take 120 years for the remaining 10 percent Bitcoin tokens to be mined.
Meanwhile, the support by Musk and Saylor for the crypto sector did have some positive impact on their market movement.
BTC, Ether (ETH), and Dogecoin (DOGE) showed small profits at the time of writing, as per Gadgets 360’s crypto price tracker.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.