What assets are the best hedge against inflation, not crypto says Elon Musk

Elon Musk tweeted on Monday saying that Tesla and SpaceX are at risk due to rising inflation and also suggested a few assets that he thinks are the best hedge against inflation, and surprisingly, they are not cryptocurrencies.

Musk discussed in a Twitter thread how global commodity prices are on track to see the largest weekly spike in more than 50 years as a result of Russia's conflict with Ukraine. He highlighted that the skyrocketing commodity prices have put both Tesla and SpaceX under great pressure.

Michael Saylor, the CEO of MicroStrategy, commented on Musk's tweet suggesting that Bitcoin is the best hedge against inflation. Musk replied that he was not surprised that Saylor would believe so.

Musk further added to the thread that he firmly believes that holding physical assets such as a home or shares in companies that make good products is a better hedge against rising inflation. He also added that though he does not think crypto is the best hedge in this situation, he would still not sell his holdings of Bitcoin, Ethereum and Dogecoin.

It is noteworthy to mention that India’s wholesale price-based inflation is at 13.11 per cent. According to the data released by the Bureau of Labor Statistics of the US, the inflation rate is at 7.9 per cent which is the highest in decades.