Elon Musk Remains Bullish on Dogecoin, Bitcoin, and Ethereum
KEY POINTS
- On Sunday, billionaire Elon Musk tweeted to his 77.9 million followers on Twitter that he will not sell any of his cryptocurrency holdings "when inflation is high."
- The most recent Labor Department data show that the primary inflation gauge -- the consumer price index -- was up 7.9% for February, marking the highest level in 40 years and the 10th straight month it was higher than 5%.
- In the past, Musk has publicly disclosed that he owns Bitcoin, Ethereum, and Dogecoin.
The CEO of Tesla and SpaceX tweeted that he's not selling any of his crypto during this time of high inflation.
On Sunday, billionaire Elon Musk tweeted to his 77.9 million Twitter followers during an exchange about the impact of high inflation on various asset classes. Musk announced that he believes cryptos are a good investment and that he will not sell any of his cryptocurrency holdings.
"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 ," Musk stated in his tweet.
The CEO of Tesla and SpaceX has publicly shared before that he owns Ethereum, Dogecoin, and Bitcoin. The Tesla enterprise is the second largest non-crypto-exchange corporate owner of Bitcoin in the world with 38,300 Bitcoin on its balance sheet -- second only to MicroStrategy.
Inflation continues to climb
While Musk is not a financial analyst, his own practices regarding asset management during rising inflation make sense. All he was saying is that whatever assets you invest in need to produce returns that are greater than inflation, otherwise you're losing money. Given the recent and enduring inflation trend, that's becoming more challenging.
In fact, the Labor Department data released last week show that the primary inflation gauge -- the consumer price index -- was up 7.9% for February, marking the highest level in 40 years and the 10th straight month it was higher than 5%.
The three cryptos that Musk mentioned all produced significantly higher returns than inflation in 2021:
- Bitcoin was up 60%
- Ethereum was up 450%
- Dogecoin was up 3,100%
While this is not financial advice and investors should always do their own research while only investing what they can afford to lose, the richest man on the planet sees crypto as a worthwhile store of value during this period of record-level inflation. He might be onto something.
Our Research Expert
Tor Constantino is a corporate communications executive and business writer with an MBA. Since 2017, he has written about cryptocurrencies, blockchain, and crypto's potential to revolutionize finance. His writing has appeared in outlets including Entrepreneur, Forbes, Fortune, CEOWorld, and Yahoo!.
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