Tesla and SpaceX CEO Elon Musk has revealed on social media that he still owns and “won’t sell” his cryptocurrency holdings, which include Bitcoin ($BTC), Ethereum ($ETH), and the meme-inspired cryptocurrency Dogecoin ($DOGE).
In a tweet Musk shared with his over 77 million followers on the microblogging platform Twitter, he pointed out he won’t sell his holdings, and commented on what assets investors should move to during high inflation periods.
To Musk, physical assets like real estate or stock in companies people believe “make good products” should be preferable to fiat currencies like the U.S. dollar when inflation rises. Musk’s comment came shortly after he revealed Tesla and SpaceX are “seeing significant recent inflation pressure in raw materials & logistics.”
The U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI), used to measure inflation, has recently posted a 7.9% rise compared to last year, marking the fastest annual jump the CPI has seen since 1982.
Musk also shared an article from the Financial Times detailing global commodity prices are on track for their biggest rally in more than 50 years. The article points out that the S&P GSCI index, which is used to gauge the price of global raw materials, jumped 16% in a week, on track for its sharpest rise since 1970.
As CryptoGlobe reported, Musk hinted earlier this year that his space exploration company SpaceX and Starlink, a project meant to surround Earth with high-speed, low latency, and affordable internet access, could soon start accepting payments in the meme-inspired cryptocurrency Dogecoin.
Musk, it’s worth noting, is a well-known DOGE supporter who late last year revealed that he believes the cryptocurrency is better for transactions than other cryptoassets like BTC.
Musk added that bitcoin’s transaction volume is low while its cost per transaction is high, making it more suitable as a store of value. Being a store of value means investors want to hold onto their BTC and not sell it or move it in transactions.
Tesla has invested $1.5 billion in the flagship cryptocurrency earlier this year, and is estimated to be up at least $1 billion on its investment, despite making a small sale after making its initial acquisition.
The electric car maker has also recently started accepting DOGE payments on its website, allowing specific products such as its “cyberwhistle,” its “Giga Texas” belt buckle” and its “cyberquad” four-wheeler for kids to be bought with it. These items are all priced in DOGE, ranging from 12,020 coins for the four-wheeler to 300 DOGE for the cyberwhistle.
Musk, along with Dogecoin’s co-creator Billy Markus, have pushed McDonald’s to accept DOGE as a payment method, but the fast-food giant ultimately did not move forward with such an integration.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Featured image via Pixabay