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

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.

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.

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.

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