Elon Musk, the world’s wealthiest person and CEO of Tesla and SpaceX, claimed that it was better to own “physical things” rather than money when inflation rates were high. He made an exception, though, for cryptocurrencies.
Elon Musk advises owning “physical things”
Musk said in a Twitter thread:
“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. I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.”
According to the Bureau of Labor Statistics, US inflation reached 7.9 percent year-over-year in February, its highest level since 1982.
Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics
— Elon Musk (@elonmusk) March 14, 2022
In May 2020, Elon Musk announced that he planned to sell nearly all of his material belongings, including his multimillion-dollar real estate portfolio. He sold his last remaining property in December 2021.
In early 2021, Elon Musk announced that Tesla had acquired $1.5 billion worth of bitcoin as a hedge against inflation.
Tesla’s stock has lost about 35% in value this year, bringing Musk’s net worth down by roughly a quarter but leaving him the world’s wealthiest person with a net worth of approximately $206 billion, according to Bloomberg Billionaires Index.