The global economic system seems to be undergoing a massive shift with geopolitical tensions riding high around the world. In a recent chat on Twitter, while Elon Musk and Michael Saylor backed Bitcoin (BTC) as a hedge against a rise in inflation, Musk also advised people to invest in physical assets to stay ahead of probable inflation curve. Saylor, on the other hand, predicted that USD consumer inflation will remain near all-time highs and that BTC's scarcity will drive in capital and further investments into the cryptocurrency.
Musk, the CEO of Tesla and SpaceX opened a Twitter discussion around the probable inflation rate that could be observed over the next few years, in the wee hours of Monday, March 14.
The multi billionaire highlighted that he will continue holding on to his Bitcoin, Ether, and Dogecoin amid rising inflation for what it's worth.
Replying to Musk's tweet, Saylor predicted that the US dollar will witness consumer inflation nearing all-time highs, and asset inflation will run at double the rate of consumer inflation.
The CEO of business intelligence firm MicroStrategy further added that investments in Bitcoin will ‘intensify' because of its scarcity.
The annual inflation rate in the US increased from 3.2 percent in 2011 to 4.7 percent in 2021, indicating that the purchasing power of the dollar has weakened in recent years, as per research firm Statista.
The COVID-19 pandemic, along with the ongoing Ukraine-Russia war altering the dynamics of international politics are some of the reasons why inflation risks are being predicted by industry leaders.
Just last week, Saylor called Bitcoin a “miraculous limited resource” unlike gold, real estate, equities, and bonds among other priced resources noting that there will only be 21 million Bitcoins to ever exist.
Within 13 years of its existence, 90 percent of the 21 million Bitcoins have already been mined. That makes for 18.9 million units.
Last year, a report by Blockchain.com claimed that it will take 120 years for the remaining 10 percent Bitcoin tokens to be mined.
Meanwhile, the support by Musk and Saylor for the crypto sector did have some positive impact on their market movement.
BTC, Ether (ETH), and Dogecoin (DOGE) showed small profits at the time of writing, as per Gadgets 360's crypto price tracker.
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