The U.S. dollar is moving toward an ‘absolute collapse’ that would give a sharp impulse to Bitcoin’s rise, according to Larry Lepard, founder of Equity Management Associates, in an interview with Kitco News.
In his view, a tightly capped supply of 21 million coins will give Bitcoin a key edge over gold and play a significant role in its long-term parabolic rise to $10 million.
“If gold rises to $10,000 tomorrow, we’ll mine more of it. There is no doubt about that, because we know where it is, it is just not profitable to extract it from the ground right now,” Lepard explained.
The entrepreneur believes that Bitcoin will remain highly volatile, and ahead lies considerable downturns.
“Most people understand the joke and realise that fiat currency continually loses value, and as this trend grows they will move to digital assets. … They will move into Bitcoin. They will buy gold. They will choose real estate. No one will be so foolish as to buy bonds from governments that have shown they cannot manage currency properly,” added the Equity head.
Regarding the safety of the technology, Lepard thinks Bitcoin is unlikely to fail, given its substantial use potential. However, in the expert’s view, authorities may try to slow the rise in the price of digital gold, by hindering entry to crypto markets and taxing trades.
The Messari CEO Ryan Selkis predicted Bitcoin to reach $100,000 within 12 months. CNBC’s surveyed major players made similar forecasts.
In mid-March, Balaji Srinivasan, a former partner at a16z and Coinbase’s chief technology officer, placed a $2 million bet that within 90 days the price of digital gold would reach $1 million.