As rising inflation threatens to erode the purchasing power of the global Fiat ecosystem, finding the perfect hedge against a deteriorating economy has become an urgent need – especially for the general public around the world.
By joining this online discussion, Tesla CEO Elon Musk publicly asked about the likely inflation rate over the next few years to gauge the opinion of global investors. The US billionaire and CEO of MicroStrategy, Michael J. Saylor, saw in his thoughts on the matter that as inflation rose, he expected the cash flow of capital to shift from traditional fiat money to scarce assets such as Bitcoin (BTC).
Over the past six months, major economies including the United Kingdom, Turkey, Russia and the United States have faced unprecedented inflationary pressures due to global insecurity and unrest caused by cross-border conflicts and the COVID-19 pandemic.
Musk praised Sailor’s general proposal to invest in scarce assets to offset rising US dollar inflation, and replied that “there is nothing unexpected about you coming to that conclusion.”
While the general public joined the discussion by rejecting Saylor’s proposal to use BTC as an inflation hedge for personal investment, Musk acknowledged that mostly scarce assets such as tangible property and corporate shares help investors maintain their purchasing power under high inflation conditions.
As part of the board, Musk shared his intention to continue owning BTC, Ether (ETH) and Dogecoin (DOGE) amid rising inflation “for what it is.”
In December 2021, Musk confirmed that the electric car giant Tesla would start accepting DOGE as a commodity, which would increase the price of the meme token by 25%.
DOGE / USD (Bittrex) Temporary candlestick chart for December 2021. Source: Trade View
However, Musk’s latest tweet in support of cryptocurrency has not yet had a positive effect on the fall in prices.
Related topics: The Dogecoin Foundation registers the name and logos as trademarks in the EU
In an effort to increase the legitimacy of the burgeoning ecosystem, the Dogecoin Foundation has registered “Doge”, “Dogecoin” and related logos as trademarks in the EU.
According to the Cointelegraph, Dogecoin’s board member Jens Wiechers said the move was taken to weed out unrelated attempts to register names and use trademarks as extortion tools.