Bitcoin’s price is above $54,500 during a time when the vast majority of people expected the top cryptocurrency by market cap to behave like a risk asset.
Instead, the asset decoupled with the S&P500 and has been the major asset to survive the bearish sentiment shift due to the Evergrande situation in China.
But that could be due to the cryptocurrency being what the founder of one equity firm says is “the loudest monetary fire alarm in finance.”
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Bitcoin Sets Off the Alarm Bells, Says Equity Manager
Being deafening and flashing dramatically, fire alarms are meant to get people’s attention.
Lawrence Lepard, the founder of Equity Management Associates LLC, believes that Bitcoin is just that – a fire alarm. That’s what he said in an interview with Kitco news on the theme of ‘sound money’.
During the world’s most long-standing annual gathering of precious metals companies at the Gold Forum Americas, Kitco spoke to the long-time equity manager, who represents “seven-eighths of the world’s publicly traded gold and silver companies when measured by production or reserve”.
Sure enough, the conversation turned to Bitcoin, and Lepard didn’t hold back on his views.
Lepard said that many goldbugs don’t take the time to understand Bitcoin, but “they should.” He goes on to say that the prominence of altcoins stains Bitcoin’s reputation with sound money investors who typically prefer traditional precious metals like silver and gold.
“Crypto is full of messy stuff” Lepard cautioned, but the core crypto is an “ncredible innovation”, technologically speaking.
He goes on to say that the immutable blockchain ledger makes BTC arguably better than gold due to its “triple-entry accounting”, where “everyone can see it”.
This makes Bitcoin better than gold, according to Lepard. He explained that due to all the ‘paper gold’ gold banks have created, Bitcoin has become the “loudest monetary fire alarm in the system right now”, calling time on the foundations of global monetary system.
In other words, Lepard, an old-school gold bug believes that Bitcoin is the soundest money in existence.
The asset manager did not express a view on Litecoin though, which is essentially the ‘silver to Bitcoin’s gold‘ in all but name.
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