Banks are Feeling Threatened of Bitcoin and for Good Reason, Tim Draper
- A new opportunity for a new currency
- Governments have to adapt to not control through currency
Venture capital investor and Bitcoin bull Tim Draper currently in an interview shared how currencies today are based on faith in the government. But Bitcoin is a currency that isn’t backed by the government rather frees us from that control.
These fiat currencies, he said started as a promise of gold but not a promise that the government will back you up.
“all of a sudden, we have a currency that is not tied to a government and not tied to a geographic territory,”
“That frees us because governments have always used that currency to control us,”
Governments control people by keeping control of their currency, but with Bitcoin, we can operate across borders much more easily and further move money all over the globe. The digital asset also reduces friction significantly.
A New Opportunity for a New Currency
Draper further pointed out the reason behind the banks being so big and rich, two and a half percent of every transaction that we do is picked by credit card companies and banks get the bulk of that.
But now that people use Bitcoin, this would go away and
“banks are feeling threatened and for good reason.”
Moreover, if you use bitcoin instead of dollars, the bank does not control your BTC. As such, there is a new opportunity for a new currency that is not just frictionless and transparent but also open, cross border, and a
“great store of value.”
According to Draper, Bitcoin is going to be faster and cheaper than the Visa network. However, currently, it is much lower than the credit card processing companies like Visa, and Mastercard at around 800,000 transactions per day.
But the network has also seen a huge amount of money being moved with just a small fraction of fee paid in the traditional payment system.
And Govt. has to Adapt to Not Control through Currency
“It’s a sea change,” said Draper adding, there is a new technology that is better, faster, and cheaper than anything else out there. “
“We are gonna move that way,”
said Draper which means, governments have to figure out how they are going to adapt to not controlling everybody through the currency.
Recently, Draper, who has been standing firm on his $250,000 price prediction for Bitcoin, said it is a conservative number for the leading cryptocurrency. He said $250k would mean BTC would have 5% of the market share of the currency world and that may be
“understating the power of bitcoin.”
Moreover, as it becomes easier for people to use the flagship cryptocurrency, they would make the decision that they like it better than fiat because
“they know that their fiat will depreciate in value,”