As Tesla considers using Bitcoin to pay, Elon Musk warns that it will face “strong inflationary pressure”


The world’s richest man warned that the world is facing “strong inflationary pressure” in the short term, and this pressure may continue.

in a debate Regarding inflation, some of the most famous names in Bitcoin have expressed unanimous doubts about the state of global monetary policy.

Musk said the future of inflation is unknown

Even the Federal Reserve Board of the United States has admitted that inflation may continue. Given the inherent deflationary nature of cryptocurrencies, this topic is particularly important to Bitcoiners.

For Musk, who Keep cool When it comes to Bitcoin as a “magic bullet” for the ills of legal tender, inflation is also a problem. As of this week, with more than 250 billion US dollars in net assets, the potential risks of currency devaluation are more potential problems than ever before.

“I don’t know the long-term situation, but in the short-term we have seen strong inflationary pressures,” he said in a Twitter debate with Ark Invest CEO Casey Wood and MicroStrategy CEO Michael Seller.

Everyone is commenting on one Previous tweets From Twitter CEO Jack Dorsey (Jack Dorsey), he described inflation as “occurring” and prone to “change everything.”

Wood is also a staunch supporter of BTC. He pointed out that, on the contrary, since the global financial crisis in 2008, the speed of currency circulation has been slowing down, covering up some devaluation effects.

In any case, when all types of products are considered, the true cost of printing in US dollars far exceeds how insignificant the government claims that inflation is actually.

“Inflation is a carrier, and it is evident in a series of products, services, and assets that are not currently measured by CPI or PCE,” Thaler wrote.

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

Fed balance sheet chart.Source: Federal Reserve

Bitcoin may return to Tesla

Musk’s Tesla broke through $1,000 per share for the first time this week, pushing his net worth to increase substantially.

related: Tesla hints that support for crypto payments may soon be restored

in a Record At the same time, the company cooperated with the US Securities and Exchange Commission (SEC) to open the door to the future acceptance of Bitcoin in its products.

“In the nine months ending September 30, 2021, we purchased a total of 1.5 billion U.S. dollars in Bitcoin. In addition, in the three months ending March 31, 2021, we accepted Bitcoin as our specific Payments for certain products sold in the region are subject to applicable laws, and this practice was suspended in May 2021,” the 10-Q document reads.

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