Lawrence Lepard, the founder of investment management firm Equity Management Associates, has suggested that following the Federal Reserve’s (Fed) recent initiatives to manage rising inflation, fiat currency sustainability is at stake.
According to Lepard, the Fed ‘blew it’ following the excessive printing of money while suggesting that the agency has panicked and is making the situation worse in attempts to rectify it, he said during an interview with Natalie Brunell on October 11.
However, in the absence of fiat currency, the prominent investor noted that Bitcoin (BTC) is likely to rise and become the dominant form of money. He stated that Bitcoin’s growth is parallel to internet skepticism and will eventually become widespread.
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“The Fed is losing it. I mean, we are in the end game of fiat money right now, they completely blew it on transitory inflation. They printed way too much money, the inflation is running red hot and they’re scared. <…> It’s obvious to me that Bitcoin is going to become a dominant form of money,” he said.
Michael Burry moment
Furthermore, Lepard warned that the current Federal Reserve policies had placed the U.S. economy into ‘a Michael Burry moment’. Notably, Burry is a notable figure in financial circles who warned about the financial crisis of 2008.
“This is a Michael Burry moment. I think in the next 18 months, we are going to see the United States experience a full-fledged currency crisis, and when it does, the Fed is going to have to come back in. <…> Powell will resign or be fired,” he added.
Bitcoin to flip gold
Whatsmore, Lepard added that Bitcoin is poised to thrive in the future and take over gold as the ultimate store of value. The investor stated that both gold and Bitcoin would perform better, but the cryptocurrency will eventually flip the precious metal.
It is worth pointing out that Bitcoin has long been touted to become a store of value and hedge against inflation. However, the asset’s performance in 2022 has failed to live up to the expectations correcting in line with the equities market.
Watch the full interview below:
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