Elon Musk

Reasons for Elon Musk’s Declaration “Do Not Sell Bitcoin”

Bitcoin prices have fallen 16% this year. The prices of Ethereum and other major cryptocurrencies have also fallen as previously bullish investors were frightened by rising interest rates and accelerating the end of stimulus measures.

Meanwhile, Elon Musk, who added $ 1.5 billion of Bitcoin to Tesla’s balance sheet in February last year, still owns Bitcoin, Ethereum, and Dogecoin and declares that he “will not sell” and inflation.

He advised people not to hold dollars when the rate was high.

As a general rule, in the face of rising inflation, it’s better to own physical assets such as homes or stocks of companies that you think are making good products, rather than dollars. ” Musk said on Twitter.

In a Twitter conversation with Michael Saylor, CEO of MicroStrategy, known for its bullish investment in Bitcoin.

I still own Bitcoin, Ethereum, and Doge, and I’m not going to sell them,” Musk said.

For the next few years, Sailor predicts that “consumer inflation will continue to be close to record highs and asset inflation will continue at twice the pace of consumer inflation.

Capital flight from cash, bonds, and value stocks to rare and valuable assets like Bitcoin will intensify,” he said.

Musk replied, “It’s not surprising that you reach such a conclusion.

MicroStrategy, a business software company with decades of history, has stepped up its investment in Bitcoin over the last two years and holds $ 4.8 billion worth of Bitcoin.

Mask, who has emerged as one of the most esteemed people in the crypto community over the past year, said in June that Bitcoin rivals Dogecoin and Ethereum could “overwhelm Bitcoin.

Musk states that he personally owns Bitcoin, Ethereum, and Dogecoin, but it is unclear when and how much cryptocurrency he bought.

Will inflation subside by raising rates?

The consumer price index (CPI) for February released by the US Department of Labor on the 10th reached a high level for the first time in 40 years, with a year-on-year increase of 7.9%, up from January (7.5%).

Energy prices have continued to rise even before Russia’s invasion of Ukraine, leading to higher prices for gasoline, rent and food.

The Federal Reserve Board (FRB) is expected to raise rates for the first time since the pandemic on the 16th, but some have questioned its effectiveness.

The market expects the Fed to implement a rate hike plan, but it’s unclear how far and how fast it will be implemented,” said Danny Hughson, an analyst at investment firm AJ Bell.

I commented. “There are big doubts about the effectiveness of rate hikes to curb inflation,” he said.