Musk agreed that physically scarce assets, like as real estate and firm shares, help investors preserve buying power in the face of excessive inflation.
As growing inflation threatens to erode the buying power of the global fiat environment, finding the ideal hedge against a weakening economy has become critical – particularly for the ordinary masses throughout the globe.
Joining the online debate, Tesla CEO Elon Musk inquired openly about the likely inflation rate over the next several years in order to measure the perception of worldwide investors. American businessman and MicroStrategy CEO Michael J. Saylor shared his opinion on the subject, predicting that with growing inflation, capital cash flow would shift away from conventional currencies and toward scarce assets such as Bitcoin (BTC).
Major economies such as the United Kingdom, Turkey, Russia, and the United States have seen extraordinary inflationary pressure in the previous six months as a result of global uncertainty and disruptions caused by cross-border conflicts and the COVID-19 pandemic.
Musk responded to Saylor’s broad proposal for investing in rare assets to combat escalating US currency inflation by saying, “It is not altogether unexpected that you would make that conclusion.”
While the general public chimed in, dismissing Saylor’s suggestion of using BTC as a hedge against inflation due to personal investments, Musk acknowledged that predominantly scarce assets such as physical property and company stocks help investors maintain purchasing power in the face of high inflation.
As part of his advise, Musk said that he intends to continue hoarding BTC, Ether (ETH), and Dogecoin (DOGE) in the face of growing inflation “for what it’s worth.”
Musk revealed in December 2021 that EV giant Tesla would begin accepting DOGE for items, increasing the meme token’s price by 25%.
However, Musk’s most recent statement in favor of cryptocurrencies has had little effect on the dropping pricing.
The Dogecoin Foundation registered “Doge,” “Dogecoin,” and its related logos as trademarks in the European Union in an attempt to strengthen the credibility of its blooming ecosystem.
According to Cointelegraph, Dogecoin executive board member Jens Wiechers indicated that the action was undertaken to screen out efforts by unconnected individuals to register the names and utilize the trademarks as extortion weapons.