- Lawrence Lepard predicts Bitcoin will reach $1 million.
- The future could see BTC becoming the foundation of monetary systems.
After soaring over $73,000, Bitcoin [BTC] was down by 7.66% over the last 24 hours, as per CoinMarketCap. At press time, BTC was trading at $67,310.78.
This drop might lead investors to consider selling the dip. However, is selling really the best move? On the recent episode of Coin Stories Podcast, Lawrence Lepard, Investment Manager at Equity Management Associates, offered a contrarian viewpoint.
He cautioned against the knee-jerk reaction of selling during dips, referencing the regret felt by those who exited the market when Bitcoin’s price significantly dropped. The exec expressed his belief in HODLing, stating:
“Bitcoiners are going to be wealthy when these coins are worth a million dollars a coin.”
Should you buy BTC at $72K?
The exec believes that even at $72,000, the king coin is an investment worth considering. He remarked,
“If you’re buying it at 72 today, it feels like you’re paying too much…Pretty much everybody who’s in Bitcoin feels like they’re too late, and they’re overpaying until about five or ten years go by…and people are saying you have one whole coin!”
He also advocated for Bitcoin as a superior savings mechanism, making the investment immune to currency debasement.
Strategies to navigate Bitcoin’s volatility
Discussing the nature of Bitcoin’s market movements, Lepard highlighted the pattern of ‘higher highs and higher lows’ despite notable drawdowns. The exec noted that volatility is gradually decreasing over time. Yet, everyone should still be prepared to manage it.
He argued against using leverage due to the risk of significant drawdowns. Instead, he suggested dollar-cost averaging (DCA) as a safer investment strategy.
Lepard highlighted that a long-term perspective typically results in a gain despite temporary dips in purchasing power. He advised investors to view market downturns as buying opportunities, not selling.
Can Bitcoin become a taxable asset?
Recently, Michael Saylor characterized Bitcoin as property, a view supported by Lepard. However, property is subject to taxation. Ergo, the question: will Bitcoin become taxable overtime?
Addressing this, Lepard noted that taxes on property mainly apply to physical real estate, with investment gains taxed upon realization.
While Bitcoin escapes traditional property tax norms, the exec believes the evolving financial needs of governments could lead to innovative taxation methods, including taxes on unrealized gains.
Envisioning BTC’s future, he commented:
“It (Bitcoin) will ultimately become the base layer of money because it would be a form of money the characteristics of which are so superior to the alternative, which is the dollar, that the dollar will fade into existence.”
Though ambitious, Lepard’s vision of Bitcoin as the future foundation of the monetary system acknowledges the considerable time and evolution required for such a transformation.
