Elon Musk reveals which assets he owns to protect himself from inflation3 min read
Tesla and SpaceX CEO Elon Musk has come up with a series of tweets about inflation and how he’s protecting himself. Musk cited real assets such as stocks and real estate and stressed that he will not sell his cryptocurrencies.
According to Musk, his cryptocurrency portfolio consists of BTC, ETH and DOGE. But the CEO also invests in other traditional assets.
“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.” he said.
Inflation affects Musk companies
Musk’s comments came on a Twitter thread in which he discussed inflation. According to the billionaire, rising prices tend to greatly affect the operations of Tesla and SpaceX.
This is because companies use several commodities in their production, such as nickel and copper, for example. With the soaring of inflation, the prices of these products practically doubled, which affects the profits of the companies.
“Tesla and SpaceX are seeing significant recent inflation pressure on raw materials logistics. And we are not alone.”
In this sense, Musk stated that the world could experience a higher inflation rate in the coming years. That’s why Musk pointed out his preference for real assets, including cryptocurrencies.
Michael Saylor, CEO of MicroStrategy and well-known advocate of BTC, responded to Musk in agreement with rising inflation. But according to him, investors will migrate from cash, bonds, value stocks and invest in BTC.
“US consumer inflation (as measured by CIP) will remain high, and asset inflation will double the CPI rate. Weaker currencies will collapse and investors will migrate from cash, bonds and value stocks to scarce goods like BTC,” Saylor said.
Currently, MicroStrategy and Tesla are the two largest companies that have the most BTC on their balance sheets. MicroStrategy’s balance contains 125,051 BTC and Tesla’s is 42,902 BTC, according to data from the BTC Treasuries.
High global inflation.
The US Consumer Price Index (CPI), a basket of commodities ranging from vehicles and milk to cereal and clothing, has reached 7.9% in the last 12 months. According to Labor Department data, this is the highest percentage of inflation since 1982.
In the view of the US government, much of the rise in prices was due to Russia’s invasion of Ukraine. Since the beginning of the war, Russia has faced financial sanctions as a repression for its attitude of invading the neighboring country.
As a result, sanctions have strangled Russia’s finances, but they have also pushed up the price of commodities, especially oil. That rise would have spilled over into US goods prices, said government spokeswoman Jen Psaki.
Amid this scenario, BTC has shown strong volatility. The price of the cryptocurrency has fluctuated between $44,000 and $39,000 since the start of the conflict. Cryptocurrency has been used by both Russians and Ukrainians to avoid sanctions and protect their wealth.