Crypto vs. Real Assets: Musk-Seller's Inflation Debate Boils Down to Scarcity

With rising inflation threatening to further eat into the purchasing power of the global fiat currency ecosystem, finding the perfect hedge against economic downturns has become a top priority — especially for ordinary people around the world.

Tesla Chief Executive Elon Musk joined the discussion online, publicly asking about the likely rate of inflation in the next few years to gauge global investor sentiment. American billionaire and MicroStrategy CEO Michael J. Saylor shared his thoughts on the issue, arguing that as inflation rises, he expects capital cash flows to divert from traditional fiat currencies. Transfer to scarce assets like Bitcoin (BTC).

Dollar consumer inflation will continue to be near record highs, while asset inflation will be twice as high as consumer inflation. Weak currencies will collapse and the flight of capital from cash, debt, and value stocks to scarce assets like Bitcoin will intensify.

- Michael Saylor⚡️ (@saylor) March 14, 2022

Over the past six months, major economies including the UK, Turkey, Russia and the US have experienced unprecedented inflationary pressures due to global uncertainty and disruption caused by cross-border conflicts and the COVID-19 pandemic.

Musk praised Thaler's general proposition about investing in scarce assets to counter rising dollar inflation, replying, "It's not entirely unpredictable that you would come to that conclusion."

While the public also joined the discussion, dismissing Thaler's suggestion to use bitcoin as a personal investment hedge against inflation, Musk acknowledged that primarily scarce assets such as real assets and company stocks help investors maintain purchasing power in the face of high inflation.

As a general principle, for those looking for advice from this thread, it is usually better to own real assets, such as a house or stock in a company that you think makes a good product, than dollars in times of high inflation.

I still own and will not sell my Bitcoin, Ethereum or Dogecoin.

— Elon Musk (@elonmusk) March 14, 2022

As part of the advice, Musk shared his intentions to continue holding Bitcoin, Ethereum and Dogecoin amid rising inflation “because it has value.”

Tesla will make some items available for purchase with Dogecoin, see how that goes

— Elon Musk (@elonmusk) December 14, 2021

Back in December 2021, Musk confirmed that electric car giant Tesla would start accepting Dogecoin for purchases, which sent the price of Dogecoin surging by 25%.

However, Musk’s recent tweets in support of cryptocurrencies have yet to have any positive impact on the falling prices.

To enhance the legitimacy of its thriving ecosystem, the Dogecoin Foundation registered "Doge," "Dogecoin," and their associated logos as trademarks in the European Union.

Given the growing number of people and organizations attempting to maliciously trademark "Doge", "Dogecoin" and even the logo Christine Ricks created for Dogecoin, we have no choice but to register them to protect everyone in the @Dogecoin community . 2/2

— Dogecoin Foundation (@DogecoinFdn) March 2, 2022

According to Cointelegraph, Dogecoin executive board member Jens Wiechers said that the move is to eliminate attempts by unrelated people to register names and use trademarks as blackmail tools.