Musk-Saylor inflation debate boils down to scarcity
As rising inflation threatens to eat up further the purchasing power of the global fiat ecosystem, finding the perfect hedge against a falling economy has become the need of the hour — especially for the general public across the world.
Joining this discussion online, Tesla CEO Elon Musk asked publicly about the probable inflation rate over the next few years to gauge the notion of global investors. Sharing his thoughts on the matter, American billionaire and MicroStrategy CEO Michael J. Saylor opined that with rising inflation, he expects the capital cash flow will move away from traditional fiat into scarce assets such as Bitcoin (BTC).
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⚡️ (@saylor) March 14, 2022
In the last six months, major economies including the United Kingdom, Turkey, Russia and the United States have witnessed unprecedented inflationary pressure owing to global uncertainties and disruptions fueled by cross-border conflicts and the COVID-19 pandemic.
Complimenting Saylor’s general proposition for investing in scarce assets to counter the rising U.S. dollar inflation, Musk replied, “It is not entirely unpredictable that you would reach that conclusion.”
While the general public joined in on the discussion, dismissing Saylor’s suggestion of using BTC as a hedge against inflation due to personal investments, Musk acknowledged that assets that are predominantly scarce — such as physical property and company stocks — help investors in maintaining their purchasing power against high inflations.
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
As a part of the advice, Musk shared his intent to continue hodling BTC, Ethereum (ETH), Dogecoin (DOGE) amid rising inflation “for what it’s worth.”
Tesla will make some merch buyable with Doge & see how it goes
— Elon Musk (@elonmusk) December 14, 2021
Back in December 2021, Musk confirmed that EV giant Tesla will start accepting DOGE for merchandise, as a result, spiking the meme token’s price by 25%.
However, Musk’s latest tweet in support of cryptocurrencies is yet to have any positive impact on the dwindling prices.
Related: Dogecoin Foundation registers name and logos as trademarked within in the EU
In an effort to improve the legitimacy of its thriving ecosystem, the Dogecoin Foundation registered “Doge,” “Dogecoin” and its associated logos as trademarks in the European Union.
Given an increasing number of bad faith attempts to register trademarks for “Doge”, “Dogecoin” and even the logos created for Dogecoin by Christine Ricks by people and organisations, we had no option but to register them to protect all good shibes in the @Dogecoin community. 2/2
— Dogecoin Foundation (@DogecoinFdn) March 2, 2022
As Cointelegraph reported, Dogecoin executive board member Jens Wiechers stated that the move was made in an attempt to weed out the attempts of unaffiliated people to register the names and use the trademarks as tools of extortion.