• Elon Musk warns of’strong inflationary pressure’ as Tesla considers accepting Bitcoin payments

  • The world’s richest man, whose net worth surpassed a quarter-trillion dollars this week, is also skeptical that inflation will ever subside.

    The world is facing “strong inflationary pressure” in the short term, which may persist, according to the world’s wealthiest man.

    In a discussion about inflation, some of the most well-known Bitcoin (BTC) figures voiced unanimous concerns about the state of global monetary policy.

    According to Musk, the future of inflation is a great unknown.

    As even the Federal Reserve of the United States admits that inflation may be here to stay, the topic has become especially relevant for Bitcoiners, given the cryptocurrency’s inherent deflationary characteristics.

    Inflation is no less of a concern for Elon Musk, who sees Bitcoin as a “magic pill” for the ills of fiat currency. With over $250 billion in net assets as of this week, potential exposure to depreciating currencies is a bigger risk than ever.

    “I’m not sure about the long term, but we’re seeing strong inflationary pressure in the short term,” he said in a Twitter debate with Ark Invest CEO Cathie Wood and MicroStrategy CEO Michael Saylor.

    All were responding to Twitter CEO Jack Dorsey’s previous tweet, in which he described inflation as “happening” and likely to “change everything.”

    Wood, a BTC supporter, pointed out that, on the contrary, monetary velocity has been slowing since the 2008 global financial crisis, masking some of the devaluation impact.

    Regardless, when all types of products are considered, the true cost of dollar printing far outweighs government claims about how insignificant inflation is.

    “Inflation is a vector, and it is clearly visible in a wide range of products, services, and assets that are not currently measured by CPI or PCE,” Saylor wrote.

    “Bitcoin is the most practical solution for a consumer, investor, or corporation seeking long-term inflation protection.”

    Bitcoin may yet make a comeback at Tesla.

    Musk’s Tesla stock surpassed $1,000 per share for the first time this week, contributing to a significant increase in his net worth.

    Meanwhile, the company left the door open to accepting Bitcoin for its products in the future in a filing with the US Securities and Exchange Commission.

    “In the nine months ending September 30, 2021, we spent a total of $1.50 billion on bitcoin purchases.” Furthermore, during the three months ended March 31, 2021, we accepted bitcoin as payment for sales of certain of our products in specified regions, subject to applicable laws, and suspended this practice in May 2021,” according to the 10-Q document.

    “We may resume the practice of transacting in cryptocurrencies (‘digital assets’) for our products and services in the future.”

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