Elon Musk warns of “severe inflationary pressures” as Tesla considers Bitcoin payments

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The world is facing “high inflationary pressures” in the short term and it could last, warns the richest man in the world.

In an inflation debate, some of the best-known names in Bitcoin expressed unanimous doubts about the state of global monetary policy.

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The future of inflation is largely unknown, says Musk

Since even the US Federal Reserve admits that inflation may not yet continue, the topic has become particularly relevant for Bitcoiners in view of the deflationary properties of the cryptocurrency.

For Musk, who keeps Bitcoin cool as a “magic pill” against the evils of fiat currency, inflation is no less an issue. With net worth over $ 250 billion as of this week, potential exposure to depreciating currencies is a more potential problem than ever.

“In the long term I don’t know, but in the short term we see strong inflationary pressures,” he said in a Twitter debate with Ark Invest CEO Cathie Wood and MicroStrategy CEO Michael Saylor.

Everyone commented on an earlier tweet from Twitter CEO Jack Dorsey who described inflation as “happening” and tending to “change everything”.

Wood, also a firm believer in BTC, noted that, on the contrary, the speed of money has slowed since the 2008 global financial crisis, masking some of the devaluation effect.

Regardless, when all kinds of products are considered, the real cost of dollar printing far exceeds government claims of how petty inflation really is.

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

“Bitcoin is the most practical solution for consumers, investors or companies looking for long-term inflation protection.”

Federal Reserve balance sheet chart. Source: Federal Reserve

Bitcoin could still return to Tesla

Musk’s Tesla topped $ 1,000 per share for the first time this week, which has contributed to a dramatic surge in his net worth.

Related: Tesla hints that support for crypto payments could resume soon

In a filing with the U.S. The Securities and Exchange Commission (SEC) has meanwhile left the door open to accept Bitcoin for its products in the future.

“In the nine months ended September 30, 2021, we purchased Bitcoin for a total of $ 1.50 billion. In addition, in the three months ended March 31, 2021, we purchased Bitcoin as payment for the sale of certain of our products in certain regions accepted. ” , subject to applicable law, and suspended this practice in May 2021, “the 10-Q document states.

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