No matter how bad the price gets, Elon Musk – the famed South African billionaire behind companies such as Tesla and SpaceX – says he will not sell his digital currency.
Elon Musk Loves His Bitcoins
The price of bitcoin has experienced some rather rough fluctuations throughout the first few months of 2022. The currency had hit a new all-time high in November of last year, exploding all the way to $68,000 per unit. Unfortunately, while everyone thought for sure that the asset was going to be at the top of its game for some time, things didn’t quite turn out that way as just a few months later, the world’s number one digital currency by market cap had lost nearly half its value.
Despite all this, Musk says that he still owns all his bitcoin, and he has no intention of selling anytime soon. His personal stash contains BTC, Ethereum, and Dogecoin, which he has become a serious proponent of in recent years, and he’s telling people not to hold onto fiat currencies like the U.S. dollar when inflation is as high as it is.
He commented in an interview:
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 and won’t sell my bitcoin, Ethereum or Doge [for what it’s worth].
The message from Musk was in direct response to a recent social media post issued by Michael Saylor of MicroStrategy fame. Not long ago, Saylor commented that the inflation rate was going to go wild over the next few years, though despite the price increases, consumers were not likely to limit their spending habits anytime soon. Saylor said:
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, and value stocks to scarce property like bitcoin will intensify.
Musk concluded his statement by adding:
It is not entirely unpredictable that you would reach that conclusion.
Nothing Major Happened to Its Price
Oddly enough, despite the positivity of his statements, Musk failed to increase the price of bitcoin or any major altcoins at the time of writing. Currently, bitcoin is still trading at $39,000 per unit, which is where it was for most of last week, while other assets – such as Dogecoin – experienced temporary jolts to their prices only to fall back down moments later.
Danni Hewson – a financial analyst at AJ Bell – says that bitcoin’s recent fall likely has to do with the Fed’s plans to hike interest rates in what will be the first major interest rate pump since the start of the coronavirus pandemic.