Bitcoin to become ‘dominant currency’ says veteran investor

This is a hypothesis put forward by Lawrence Lepard, founder of Equity Management Associates, an investment management company.

This statement should appeal to bitcoin maximalists. Lawrence Lepard, founder of investment management firm Equity Management Associates (which makes big bets on bitcoin), continues his statements against the monetary policy of the American central bank (Fed).

“Inflation peaked”

“The Federal Reserve is going crazy. Now we are in the final game of paper money, they have misunderstood temporary inflation. They printed too much money, inflation was at its peak. that bitcoin will become the dominant form of money,” Lawrence Lepard said.

The latter also believes that over the next 18 months the United States will experience a “monetary crisis”, implying that the Fed will have to “return to power” in its monetary policy.

Bitcoin struggles to fall below $20,000

Thus, on September 20, the US central bank announced the fifth consecutive increase in its key rates, again raising them by three-quarters of a percentage point and placing them between 3 and 3.25%. In particular, he plans to continue this momentum to curb inflation.

The Fed’s decisions are impacting the price of the cryptocurrency queen as Bitcoin struggles to bounce back above its symbolic $20,000 threshold. This Thursday morning, the price of the asset is only around $19,000. In fact, technology stocks and cryptocurrencies are among the most sensitive assets for central bank policy, and in particular the US Central Bank (Fed).

Recall that in 2020 and 2021, there was a lot of liquidity in the markets, introduced by central banks to support the economy in the midst of a pandemic. This caused the cryptocurrency, the Nasdaq market and other risky assets to rise. 2022 changes the landscape with the Fed raising rates, which has a downward effect on the price of cryptocurrencies.

Also for Lawrence Lepard, bitcoin can replace gold as a store of value. Despite his claims, the cryptocurrency has lost more than 70% of its value since its all-time high of $69,000 last November, and it is still trying to establish itself as a reserve against inflation.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker.