Tesla May Accept Bitcoin Transactions, But Elon Musk Cautions Of “Severe Inflationary Impact”
The world’s wealthiest man warns of “severe inflationary strain” in the immediate term. In a debate over prices, many well-known Bitcoin figures voiced reservations about worldwide financial policy. According to Musk, the direction of inflation is a tremendous unknown.
Because Bitcoin is essentially deflationary, the topic is particularly relevant for Bitcoin holders. Inflation is a concern for Musk, who sees Bitcoin as a “miracle cure” for fiat currencies faults. With almost $250 billion in net equities as of this week, currency devaluation risk is greater than ever. On Twitter, he argued with Ark Invest Director Cathie Wood and MicroStrategy Director Michael Saylor that “short-term inflationary pressures are substantial.”
Inflation is “occurring” and “changing things,” said Twitter Head Jack Dorsey in an earlier post. Wood, a staunch BTC advocate, highlighted that currency velocity had slowed following the 2008 GFC, masking some of the depreciation impacts. Nevertheless, the real price of currency printing much outweighs the government’s statements about how insignificant inflation is.
Notably absent from the CPI or PCE are “inflationary vectors” that affect a wide range of goods, services, and assets. Inflation insurance is the most workable option for consumers, investors, and institutions.
BTC May Come Back To Tesla
According to Elon Musk, the leading electric car developer, Tesla may soon attempt to restore compatibility for crypto payment transactions. Tesla noted in a September quarterly report with the Securities and Exchange Commission that it “may in the future recommence the process of trading in digital currencies,” implying it plans to resume digital backing purchases.
“We think in the long run the prospects of crypto assets both as an asset and as a flexible alternative source of income,” the company stated. Tesla formerly supported Bitcoin from January to March of this year. Tesla has embraced Bitcoin (BTC) in a big way, pouring $1.5 billion of its capital into BTC in the first quarter of 2021. The company was chastised for supporting Bitcoin despite the widespread belief that proof-of-work processing is harmful to the ecosystem.
Musk stated earlier this year that Tesla will try again with Bitcoin payments services once at least the majority of the Bitcoin network’s hashpower is green. Tesla’s market valuation surpassed $1 trillion after a historic transaction with automobile rental business Hertz. Tesla’s stock price rose $1.00 for the first time.
Musk revealed over the weekend that he only owns BTC, Ether (ETH), and DOGE. On Monday, Shiba Inu Hodler asked Musk how much SHIB he has, toward which Musk responded, “None.” “I got some ‘BTC, Ether & Doge’ ASCII hash codes out of interest” he added.