On Monday, Bitcoin, Ether, and Dogecoin surged after Elon Musk tweeted that he holds the digital currencies and has no plans to sell them. Furthermore, he advises that when inflation is strong, it is preferable to hold real assets, such as a house or stock in reputable firms that create good products, rather than dollars.
Bitcoin, which had plummeted as much as 2.9 percent before Musk’s post, momentarily recovered losses before resuming its decline. The value of the meme cryptocurrency Dogecoin has risen by more than 9%.On major spot markets, the currency is now trading at $0.11.
Musk discussed inflation
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.— Elon Musk (@elonmusk) March 14, 2022
I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.
After the consumer price index (CPI) in the United States increased 7.9 percent from a year ago, the highest rate in more than 40 years, Musk moved to Twitter to ask his followers what the “likely inflation rate” is for the next few years.
Cryptocurrency and Musk
For the first time, in July, at “The B Word,” an online conference, Tesla CEO Elon Musk disclosed the makeup of his cryptocurrency holdings for the first time. When asked whether he was interested in driving up the price of Bitcoin and then selling it, Musk stated that he wanted the most famous cryptocurrency to succeed.
At the same time, he warned his followers not to invest their money in cryptocurrency. The entrepreneur said he acquired three cryptocurrencies “out of curiosity” in October. Musk also denied holding Dogecoin coin Shiba Inu at the time, causing the canine cryptocurrency’s price to fall temporarily.
While the exact value of Musk’s cryptocurrency holdings is unclear, Tesla disclosed in early February that it had more than $2 billion in Bitcoin.