Elon Musk has given a piece of advice for those seeking advice on where to hide their wealth as inflation skyrockets. According to Musk, it is necessary to have physical things instead of cash. Musk doesn’t think investing in dollars or gold is right and offers investors physical things like corporate bonds or a house.
Elon Musk gives investment advice
Tesla CEO Elon Musk said that while answering the question of how to invest in the face of rising inflation, he does not support the purchase of classical dollars or gold. According to Musk, people can protect their money in the face of rising inflation by investing in immovable assets such as houses. “It is often better to have stocks of companies that you think make good products, or physical things like houses, than to have dollars when inflation is high,” Musk said. An interesting interpretation considering that Musk has sold all seven of his California homes for $128 million and is currently renting a home in Texas.
Musk’s comments came in response to MicroStrategy CEO Michael Saylor’s prediction that inflation will remain at 40-year highs and investors’ “flight from cash, debt and value stocks to scarce properties like Bitcoin will intensify.” As Cryptokoin.com also reported, the inflation figure in the USA rose to 7.9 percent, the highest level of the last 40 years.
Musk is not selling his Bitcoin, ETH and DOGE
“I still own and will not sell Bitcoin, Ethereum (ETH) or Dogecoin (DOGE),” Musk added to his tweet above. But in Michael Saylor’s view, Bitcoin, Ethereum, Dogecoin (DOGE) and other cryptoassets are not “physical things”, they are privately owned (as opposed to fiat currency) and scarce (like gold). While the Bitcoin supply is capped at 21 million, no new ETHs are produced.
While the value of cash is currently disappearing at an annual inflation rate of 7.9 percent, the U.S. Experts like Global Investors CEO Frank Holmes find Elon Musk’s advice logical. Savings accounts earn an average of 0.06 percent. Bond yields are very low. In fact, according to the expert, all countries are removing US dollars from their forex reserves.