Elon Musk warns of ‘strong inflationary pressure’ as Tesla mulls Bitcoin payments

According to the richest man in the world, the world is facing “strong inflationary pressure” in short-term, and it could persist,

Some of the most prominent names in Bitcoin (BTC), voiced unanimity about the state global monetary policy during a debate on inflation.

Musk: Future of inflation is unknown

The topic is especially relevant for Bitcoiners because of its intrinsically deflationary nature. Even the United States Federal Reserve has admitted that inflation may be here to remain.

Elon Musk is cool about Bitcoin, but inflation is still a problem. Potential exposure to devaluing currencies is a greater problem than ever with over $250 billion in net assets at the end of this week.

He said, “I don’t know what the long-term is like but we are experiencing strong inflationary pressure” in a Twitter conversation with Ark Invest CEO Cathie Wood & MicroStrategy CEO Michael Saylor.

All of them were responding to a tweet by Jack Dorsey (Twitter CEO), who had previously described inflation as “happening” that was apt “change everything”.

Wood, a strong supporter of BTC, said that monetary velocity had been slowing in the wake of the 2008 global financial crisis. This helped to conceal some devaluation effects.

However, all products taken into consideration, the true cost to print dollars far exceeds government claims about how small-scale inflation is.

Saylor wrote that inflation is a vector and is evident in a variety of products, services, and assets not currently measured using CPI or PCE.

“Bitcoin provides the best solution for consumers, investors, and corporations looking to protect inflation over the long-term.”

Federal Reserve balance sheet chart. Source: Federal Reserve

Tesla may soon receive Bitcoin again

Musk’s Tesla reached $1,000 per share this week for the first-time, triggering a dramatic rise in his net worth.

Related: Tesla suggests it might soon resume support crypto payments

The company filed with the U.S. Securities and Exchange Commission. In the meantime, it left open the possibility of accepting Bitcoin as a payment option for future products.

“We bought $1.50 trillion in bitcoin during the nine months ending September 30, 2021.” The 10-Q document states that we also accepted bitcoin payments for certain products sold in specific regions during the three-months ended March 31, 2021. This practice was suspended in May 2021.

“We might in the future resume the practice of transacting with cryptocurrencies (‘digital capital’) for our products or services.”
https://cointelegraph.com/news/elon-musk-warns-of-strong-inflationary-pressure-as-tesla-mulls-bitcoin-payments

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Donna Burk

Donna Burk– Business News My Name is Donna Burk and I am also the main source from the ‘Dailynewssheet.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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