Tim Draper still bullish on Bitcoin
Tim Draper is an early investor in Bitcoin. After predicting successfully the Bitcoin price to $10,000 in 2014, he made another prediction in April 2018, forecasting the price of Bitcoin to $250,000. American venture capitalist and Blockchain industry influencer, claimed that Bitcoin (BTC) is “bigger than the internet,” and several other major developments in human history.
“I hold a lot of cryptocurrencies and mainly Bitcoin. I am buying more. I feel that crypto and Bitcoin are the future. Fiat is the past. I do still have to hold some fiat currency for everyday transactions today, but I suspect that that will change over the next few years. I cannot wait to be able to go to a store and make purchases using cryptocurrencies. Fiat currency will eventually become as passé as trying to pay for coffee with pennies. I’m not really interested in holding fiat, because it loses value over time.”
In July 2014, Draper received wide coverage for his purchase at a US Marshals Service auction of seized bitcoins from the Silk Road marketplace website. Draper purchased, for an undisclosed price, nearly 30,000 bitcoins which had been seized by the US Marshals service and auctioned to the public. The accumulation of bitcoins was estimated to be worth US$19 million at the time.
“I expect that since cryptocurrencies will increase the velocity of money, the current $86 trillion global market for currency will grow to be about $140 trillion in the next 10 years, and that growth will be in crypto. In fact, I estimate that fiat currencies will actually decrease in use, and that crypto will become as much as $100 trillion of that market. I expect Bitcoin to be about 10% of that market, or $10 trillion. There is a lot of room to grow there.”
Tim Draper about regulation. According to Tim if we combine Bitcoin, blockchain with smart contracts and artificial intelligence, we could create the perfect bureaucracy.
“Regulations need to be reined in and made clear. The governments of the world are in competition for us now and the best of them are creating very clear and light-touch regulations for crypto. Cryptocurrencies are the next big technological tectonic shift and governments have to weigh their need to protect investors with their need to be included in this potential economic powerhouse that is crypto. I believe cryptocurrencies will overtake fiat currencies in the next five to seven years.”
When asked about scalability problems that many blockchains are facing, such as the Bitcoin and Ethereum block-size and limited transactions per second (only 4 to 6 compared with about 25,000 Visa transactions per second) Tim Draper answered:
“It used to be the case that the Bitcoin block was too slow to make small transactions, so it was better as a store of value. But what is happening is that as time goes on, more technologies make it easier for us to use. We have had the introduction of Lightening, Bitcoin Cash and Bitcoin Gold, and I think what eventually will happen is that these cryptocurrencies will be more ubiquitous as engineers continue to make them faster and more useful.”
Draper is not worried about the security that the Bitcoins blockchain provide when asked about the digital wallets that have been hacked. (click here if you want to know why the Bitcoin network is 100 000 times more powerful than the top 500 supercomputers)
“There are plenty of instances where digital wallets have been hacked and cryptocurrency has been stolen. But the underlying blockchain has never been hacked into. Knock on wood. And it is getting harder and harder to penetrate as it grows.”
In conclusion, Tim enforced his position on the prediction made in April 2018:
“Price-wise, we’ll continue to see Bitcoin move higher. I’ve revised my estimate up to $250,000 four years out, so we’ll see Bitcoin trade around the $250,000 mark in 2022.”
Learn more about the latest blockchain implementations:
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Tim Draper about “the perfect government bureaucracy” on blockchain.