Venture capitalist Tim Draper isn’t letting the latest Bitcoin crash get the best of him. He’s still betting on the digital currency and says it will lead the future of finance.
Crypto Will Dominate Because It’s Cheap
At the World Crypto Con in Las Vegas earlier this month, Draper reaffirmed his position that Bitcoin will reach $250,000 by the year 2022. Furthermore, he believes the entire economy will eventually pivot to digital currencies, and trusts Bitcoin to lead the way.
Discussing the benefits of digital currencies, he mentions:
They’re frictionless, they cost you less. I mean, just by that alone, it’s going to be better for people, and so they’re going to move to crypto, and they’re going to go away from the political currency. They call it fiat.
Conquering the Monetary Industry
Draper believes that eventually, cryptocurrencies will account for at least half of the world’s currency value:
That’s the way it’s going to move, and so the countries that are forward thinking are saying, ‘This is the way it’s going to be,’ so we’re going to make a huge mistake by trying to cling to our old currency, and that’s why you’re seeing the smaller countries all say, ‘Yeah, we want bitcoin, we want initial coin offerings (ICOs) here, we want the blockchain. We want all these things in our country.’
According to Draper, there is approximately $86 trillion in fiat currency all around the world which is respectively tied to certain countries’ fortunes. At press time, cryptocurrency only accounts for about $150 billion of the world’s total money supply.
Simplicity Is the Goal
However, he’s confident the ratio will eventually switch to a 50-50 balance, in which both fiat and crypto share equal positions in the global financial market. Explaining once again that cryptocurrencies are both frictionless and cheaper to operate, he states:
It will be easier to spend and invest your bitcoin than it is to spend and invest your dollars. I tend to move my dollars into bitcoin because I think, well, why would I want this currency that’s tied to some political force when I have a currency that is going to be frictionless and global? I would much rather have a global currency than one that is sort of tied to a political force.
Everybody’s Welcome in the World of Bitcoin
In the meantime, Draper says he also has plans to open a Bitcoin venture fund:
Eventually, I want to be able to raise a fund that is all bitcoin, invest it all in bitcoin into a bunch of different companies and have them pay their employees and suppliers in bitcoin, and then no accounting fees, and it’s done automatically, and it’s all built into smart contracts so that if one of those companies gets sold, I push a button and it just shoots into all their bitcoin wallets.
Like Draper, do you believe Bitcoin still has a chance? Why or why not? Let us know in the comments below.
Image courtesy of Wikimedia Commons
