- Elon Musk on Monday advised his Twitter followers to own “physical things” when inflation is high.
- He seemed to make an exception for bitcoin, ether, and dogecoin, saying he won’t sell his holdings.
- Musk, the world’s richest person, said in 2020 he wants to sell “almost all” his physical belongings.
Elon Musk advised Monday that it’s better to own “physical things” like homes and stocks – but added that he won’t sell his bitcoin, ether, and dogecoin holdings.
Musk, CEO of Tesla and SpaceX, and the world’s richest person, said it was better to own physical things instead of US dollars when inflation was running high. He appeared to make an exception for cryptocurrencies, though.
In a Twitter thread discussing inflation, Musk 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.”
He added: “I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.”
—Elon Musk (@elonmusk) March 14, 2022
Inflation in the US hit 7.9% year-on-year in February, its highest since 1982, according to the Bureau of Labor Statistics.
Tesla and SpaceX were “seeing significant recent inflation pressure in raw materials & logistics,” Musk said Monday.
Musk announced in May 2020 that he planned to sell “almost all” his physical belongings, including his multimillion-dollar property portfolio. He sold his last remaining home in December 2021.
The billionaire entrepreneur is an advocate of cryptocurrencies, albeit with caveats. He’s regularly voiced support for dogecoin and discussed the merits of crypto with leading figures from the tech industry.
Musk’s Tesla said it bought about $1.5 billion worth of bitcoin in early 2021, to be used a hedge against inflation.
Tesla’s share price has fallen about 35% this year, sending Musk’s fortune down by about a quarter – but he’s still the richest person in the world, with a net worth of around $206 billion, according to the Bloomberg Billionaires Index.
Commodity prices were already on the upswing on the back of supply chain disruptions as the global economy recovers from the pandemic. Russia’s invasion of Ukraine last month added to supply-side strains to the energy, metals, and grains markets, because both countries are leading suppliers.
