The crypto market this month has been unforgiving to Bitcoin (BTC), along with nearly every altcoin on the market. After Bitcoin started dropping, most of them followed suit, and Bitcoin is comfortably resting at above the $4,000 mark again. This is a nice change from the low $3,700 it reached earlier this week. Though the shaky ground has left some investors worried, Tim Draper is not one of them.
The venture capitalist had the opportunity to speak at the World Crypto Con in Las Vegas, claiming that the global economy may not even need fiat currency for much longer. In fact, he was bold enough to say, “It’s going to be better for people. They’re going to move to crypto, and they’re going to go away from the political currency — they call it fiat. That’s the way it’s going to move.”
Many countries with more technological advancements believe that there’s already a transition in progress, which is why many of them are choosing to make crucial changes now. Draper commented,
“We’re going to make a huge mistake by trying to cling to our old currency. That’s why you’re seeing the smaller countries all say, ‘Yeah, we want bitcoin, we want initial coin offerings here, we want blockchain. We want all of these things in our country.”
Investors should keep in mind that Draper has always been bullish about bitcoin, even daring to predict a $250,000 price target within the next four years. At the Las Vegas event, Draper noted,
“I tend to move my dollars into bitcoin, because 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.”
Many short-term players in the industry are getting out now, due to the simple drop in the prices. However, Draper wants to take the opportunity to launch a bitcoin venture fund, believing in the power that Bitcoin has to cause an upswing.
Draper elaborated, saying,
“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 all 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, it just shoots into all of their bitcoin wallets.”
When speaking with another news outlet this month, Draper admitted that he is still holding onto the 40,000 bitcoin he purchased in the end of 2014, which was $24 million ($600 each) at the time. Presently, if he was to cash out at the current market, his investment would be worth about $160 million now. It doesn’t look like he wants to get out anytime soon though. Reaching his prediction would mean a $10 billion payday.
At the 2018 Web Summit in Lisbon, he noted,
“This is a new society, and you want to get out in front of it. You want to be a part of this new society. Or do you want to be a Luddite. The Luddites died off, didn’t they?”
Reminiscing about other investments that were ahead of their time, he mentioned the creation of the internet.
“The Internet started in the same way,” Draper reflected. “It came in big waves and then it kind of came crashing down. And then the next wave comes concentrated but much bigger. I suspect the same thing will go on here.”