- Lawrence Lepard predicts Bitcoin will reach $1 million.
- In the future, BTC could become the basis of monetary systems.
After rising over $73,000, Bitcoin [BTC] fell by 7.66% in the last 24 hours CoinMarketCap. At the time of writing, BTC was trading at $67,310.78.
This decline may cause investors to consider selling the dip. But is selling really the best move? On the recent one episode of Coin Stories Podcast, Lawrence Lepard, Investment Manager at Equity Management Associates, offered a contrarian view.
He warned against the knee-jerk reaction of selling during dips, citing the regret felt by those who exited the market when Bitcoin’s price fell significantly. The director expressed his belief in HODLing, stating:
“Bitcoiners will get rich if these coins are worth a million dollars per coin.”
Should you buy BTC for $72K?
The director believes that even at $72,000, the king coin is an investment worth considering. He noted:
“If you buy it today at age 72, it feels like you’re paying too much… Pretty much everyone who’s in Bitcoin feels like they’re too late, and they’re paying too much until about five or ten years expire… and people say you have one whole coin!”
He also advocated Bitcoin as a superior savings mechanism, making the investment immune to currency decline.
Strategies to Navigate Bitcoin Volatility
Discussing the nature of Bitcoin’s market movements, Lepard highlighted the pattern of “higher highs and higher lows” despite notable declines. The director noted that volatility is gradually decreasing over time. Yet everyone still has to be prepared to deal with it.
He argued against the use of leverage due to the risk of significant withdrawals. Instead, he proposed dollar-cost averaging (DCA) as a safer investment strategy.
Lepard emphasized that a long-term perspective usually leads to profits, despite temporary declines in purchasing power. He advised investors to view market declines as buying opportunities and not as selling opportunities.
Can Bitcoin Become a Taxable Asset?
Recently, Michael Saylor characterized Bitcoin as property, a view supported by Lepard. However, real estate is subject to tax. Ergo, the question: will Bitcoin become taxable overtime?
To address this, Lepard noted that real estate taxes apply primarily to physical real estate, with investment gains being taxed upon realization.
Although Bitcoin escapes traditional property tax standards, the director believes that the changing financial needs of governments could lead to innovative tax methods, including taxes on unrealized profits.
While envisioning BTC’s future, he noted:
“It (Bitcoin) will eventually become the base layer of money because it would be a form of money whose characteristics are so superior to the alternative, which is the dollar, that the dollar will disappear.”
Although ambitious, Lepard’s vision of Bitcoin as the future foundation of the monetary system recognizes the significant time and evolution required for such a transformation.