When inflation is high, Elon Musk claims he owns 'physical things' but he is not selling his cryptocurrency

More On: Elon Musk

Elon Musk tells Tucker Carlson that the U.S. government was able to read the direct messages of Twitter users

Workers at Tesla used cameras in customers' cars to spy on them

As inflation soars at a rate not seen in decades, Tesla CEO Elon Musk advises investors to prioritize physical goods above cash.

In a Musk tweet around midnight ET on Monday, the Tesla founder said: “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.”

Even so, Musk said he is holding onto cryptocurrencies.

“I still own & won’t sell my Bitcoin, Ethereum or Doge,” he added.

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.
— Elon Musk (@elonmusk) March 14, 2022

The remarks came after the consumer price index climbed 7.9 percent year on year in February, the highest level since January 1982.

During inflationary times, investors may gravitate to physical assets such as commodities, as inflation raises the prices of those items.

Musk's statements on cryptocurrency temporarily pushed the price of bitcoin higher before the digital asset retraced its gains. By 7:30 a.m. ET, Bitcoin was practically flat at $38,940.47.

According to CoinDesk analysis, the price of bitcoin will be roughly 19% lower in 2022.

Earlier in the thread, MicroStrategy CEO Michael Saylor promoted cryptocurrency as an inflation bet.

"Weaker currencies will fail, and capital will flee from cash, debt, and value equities to rare property like #bitcoin," Saylor said.

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.
— Michael Saylor⚡️ (@saylor) March 14, 2022

Both CEOs are well-known names in the crypto space, having incorporated bitcoin to their respective companies' balance sheets. In the past, Musk's comments have consistently influenced the value of digital currency.

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.