Elon Musk, the CEO of Tesla and SpaceX, has warned that raw materials and logistics are experiencing considerable inflation. He advised people to buy actual goods when inflation is high, but he says he will not sell his cryptocurrencies, including bitcoin, ether, and dogecoin.
In a series of tweets that began Sunday evening, Elon Musk criticized excessive inflation. “What are your ideas on the expected inflation rate over the next several years?” he asked his 7.7 million Twitter followers. Musk also mentioned that raw materials and logistics are seeing considerable inflation at Tesla and SpaceX.
Other firms are witnessing a linear behaviour, according to the SpaceX CEO. He cited a Financial Times report from earlier this month that stated that global commodity prices are on course for the most significant weekly gain in more than 50 years, with Europe’s natural gas prices setting a new high.
“Events in Russia and Ukraine are unleashing exceptional commodity price moves, which could have structural implications on long-term supply… but we also believe there are credible threats of demand destruction as commodity prices melt-up,” said Dominic O’Kane, an analyst at global investment bank JPMorgan.
Cryptocurrencies and Elon Musk’s Inflation Advice:
Michael Saylor, the pro-bitcoin CEO of Microstrategy, was one among several who responded to Musk.
He wrote on Twitter: Consumer inflation in the United States will remain at all-time highs, but asset inflation will be double that of consumer inflation. Weaker currencies will fail, and money will flee from cash, debt, and value equities to scarce assets like bitcoin.
Saylor’s finding did not surprise Musk. “It’s not altogether surprising that you came to that conclusion,” he responded. When inflation is strong, the SpaceX CEO went on to say that “it is often preferable to hold real objects like a home or shares in firms you think to manufacture good products than money.”
Tesla’s techno king also acknowledged that he still has three cryptocurrencies that he will not sell. Musk tweeted, “I still own and will not sell my bitcoin, Ethereum, or doge.”
He originally announced that he holds BTC, ETH, and DOGE in June of last year. He further stated that Spacex is the only owner of BTC. In a statement with the Securities and Exchange Commission (SEC), Tesla noted that the fair market value of his bitcoin holdings as of December 31 was $1.99 billion.
Musk also challenged Russian President Vladimir Putin to “single combat” on Monday. “The stakes are Ukraine,” he remarked. “Do you agree to this fight?” he asked the Kremlin in a follow-up tweet sent less than an hour later.
A few shipments of Starlink equipment have been shipped to Ukraine by SpaceX CEO Elon Musk. “Starlink keeps our cities linked, and emergency services save lives,” stated Ukraine’s vice prime minister, Mykhailo Fedorov.