A veteran investor says ‘we are at the end game of fiat currency
Lawrence Lepard, a founder of the investment management business Equity Management Associates, has claimed that fiat currency sustainability is in danger as a result of the Federal Reserve’s (Fed) recent measures to contain growing inflation.
During an interview with Natalie Brunell on October 11, Lepard said that the Fed “blew it” due to the excessive printing of money, implying that the agency has panicked and is making the issue worse in an effort to correct it.
In the absence of fiat currency, the notable investor predicted that Bitcoin (BTC) would increase and become the main form of currency. He added that Bitcoin’s expansion is linked to internet mistrust and that it would finally get mainstream acceptance.
“The Fed is in chaos. I mean, we are now in the last stages of fiat currency, and they have utterly blown it on temporary inflation. They issued much too much currency, inflation is soaring, and they are terrified. <…> “It seems evident to me that Bitcoin will become the predominant form of currency,” he stated.
In addition, Lepard cautioned that the present actions of the Federal Reserve have put the U.S. economy in a “Michael Burry moment.” Notably, Burry is a prominent financial person who predicted the 2008 financial catastrophe.
“This is Michael Burry’s time to shine. I believe that within the next 18 months, the United States will undergo a full-blown currency crisis, at which point the Fed will be forced to intervene. Powell will either resign or be fired,” he said.
In addition, Lepard said that Bitcoin is primed to flourish in the future and surpass gold as the premier store of wealth. The investor said that both gold and Bitcoin will outperform the precious metal, but that the cryptocurrency would ultimately surpass gold.
It is important to note that Bitcoin has long been marketed as a store of wealth and inflation hedge. Nonetheless, the asset’s performance in 2022 has fallen short of forecasts, reversing in line with the equity market.