The world’s richest man warns in the short term that the world will face “strong inflationary pressures” and may continue.
In the inflation debate, some of the most famous names in Bitcoin (BTC) have unanimously expressed their doubts about the state of global monetary policy.
Musk said the future of inflation is largely unknown.
As the US Federal Reserve admits that inflation may continue, this topic has become particularly relevant for bitcoin, given the deflationary properties of the cryptocurrency.
For Elon Musk, who is still brilliant when it comes to bitcoin as the magic pill for fiat diseases, inflation is no less of a problem. With net assets in excess of $250 billion this week, potential exposure to devaluation is a greater concern than ever.
“I don’t know anything about the long term, but in the short term, we see strong inflationary pressures,” he said in a Twitter discussion with Ark Invest CEO Cathy Wood and MicroStrategy CEO Michael Sailor.
Everyone commented on an earlier tweet from Twitter chief Jack Dorsey, who called inflation “happening” and it could “change everything.”
Wood, who is also a staunch supporter of bitcoin, noted that cash flow has slowed since the 2008 global financial crisis, partially masking the impact of devaluation.
However, when all kinds of goods are taken into account, the true cost of dollar printing far outweighs the authorities’ claims about how little inflation really is.
“Inflation is a vector factor and this is evident in a number of products, services and assets that are not currently measured by CPI or PCE,” Seilor wrote.
“Bitcoin is the most practical solution for a consumer, investor or business looking for long-term inflation protection.”
The balance chart of the Federal Reserve System. Source: Federal Reserve System.
Bitcoin may keep coming back to Tesla
Tesla Musk crossed $1,000 a share for the first time this week, sharply increasing his net worth.
On the subject: Tesla suggests that it may soon resume support for cryptocurrencies.
Meanwhile, the US Securities and Exchange Commission has reserved the option to accept bitcoin for its products in the future.
“In the nine months ending September 30, 2021, we purchased a total of $1.50 billion in bitcoin. In addition, for the three months ending March 31, 2021, we have accepted bitcoin as a form of payment to sell some of our products. In certain regions, in accordance with current legislation, This practice was suspended in May 2021″ – says Document 10-Q.
“In the future, we may resume trading cryptocurrencies (“digital assets”) for our products and services.
