Key Points
- Lawrence Lepard predicts Bitcoin will reach $1 million and become the foundation of monetary systems.
- Despite recent price drops, Lepard advises against selling and advocates for a long-term investment perspective.
After reaching over $73,000, Bitcoin (BTC) recently experienced a 7.66% drop in value, trading at $67,310.78 at the time of writing.
This downturn may prompt investors to sell, but Lawrence Lepard, Investment Manager at Equity Management Associates, suggests a different approach.
Lepard’s View on Bitcoin
Lepard warns against selling during dips, reminding investors of the regret experienced by those who left the market when Bitcoin’s price dropped significantly. He believes in HODLing, stating that Bitcoin holders will become wealthy when the coin’s value reaches $1 million.
He also believes that Bitcoin is still worth investing in, even at $72,000. In his opinion, Bitcoin is a superior savings mechanism, immune to currency debasement.
Bitcoin’s Market Movements and Future
Lepard observes that Bitcoin’s market follows a pattern of ‘higher highs and higher lows’ despite significant drawdowns. He advises against using leverage due to the risk of significant drawdowns and suggests dollar-cost averaging (DCA) as a safer investment strategy.
Lepard and Michael Saylor both view Bitcoin as property. However, property is subject to taxation, raising the question of whether Bitcoin will become taxable over time. Lepard believes that while Bitcoin currently escapes traditional property tax norms, evolving government financial needs could lead to new taxation methods.
Lepard envisions Bitcoin eventually becoming the base layer of money, outperforming the dollar due to its superior characteristics. However, he acknowledges that such a transformation will require considerable time and evolution.
