“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 tweeted.
Prior to Musk’s statement, bitcoin had plummeted as much as 2.9 percent, but it had rebounded briefly before resuming its decline. Ethereum surged up as much as 2.3 percent before giving up some of its gains. According to Bloomberg, Dogecoin rose 3.8 percent in the hour after the tweet, the biggest among cryptocurrencies tracked by CoinGecko.
“What are your thoughts about the probable inflation rate over the next few years?” Musk also posed a question to his followers. “Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics,” he said later in a tweet.
“USD consumer inflation will continue near all-time highs, and asset inflation will run at double the rate of consumer inflation. Weaker currencies will collapse, and the flight of capital from cash, debt, & value stocks to scarce property like bitcoin will intensify.” Bitcoin bull and MicroStrategy CEO Michael Saylor predicted in a tweet. Weaker currencies will collapse, and capital flight from cash, debt, and value equities will accelerate to scarce assets such as bitcoin.”
MicroStrategy reported a $90 million net loss for the fourth quarter on February 2nd, according to the press announcement.
As GOBankingRates pointed out at the time, Saylor’s bitcoin bullishness was unaffected by the setback. “The only thing you will regret in your old age is that you did not do it. – Rudyard Kipling, #Bitcoin “He tweeted the next day.
“If you believe in Bitcoin, then you should always buy the dips. MicroStrategyis a long-term HODL’er with high expectations for the long-term price,” Matthew Le Merle, managing partner at Blockchain Co-investors, told GOBankingRates. “Michael Saylor has a very long-term view which he is willing to bet his company on. We only wish more American CEOs would abandon short-term quarter-by-quarter thinking for a long-term value creation mindset on behalf of their shareholders.”