Venture capitalist Tim Draper, who criticized the Indian government for considering the ban on cryptocurrencies, has now become hopeful after the Supreme Court’s decision in crypto’s favor earlier this month.
“The Supreme Court of India and the Indian government have shown that the best ideas ultimately prevail, and just in time, because the benefits of Bitcoin and crypto over current systems will become apparent during this crisis.”
When the reports of a former DEA secretary recommending a complete ban via “Banning of Cryptocurrency & Regulation of Official Digital Currency Bill 2019” came, Draper said it will set the country back 40 years.
Now that the apex bank’s potential ban on cryptos by preventing banks and financial institutions from dealing with crypots has been curbed, businesses are re-entering the market.
In his recent trip to India, Draper interacted with some key crypto ecosystem stakeholders and shared with the local media,
“Absolutely! I met several Bitcoin and crypto startups while I was in India last week. I hope to be able to fund a number of them.”
Recently, Binance also announced a fund of $50 million to invest in crypto and blockchain startups.
Institutional Panic Triggering the Market
In the past few weeks, the crypto market took a deep fall, with bitcoin falling over 60% from its February high to $3,850. However, last week, the leading digital currency recovered only to fall back below $6,000 over the weekend.
According to Draper, the institutional panic was what triggered the fall as investors have been selling everything to get into cash. Some of the overleveraged miners also had their loans called and were forced to sell. However, long term holders saw this as a buy the dip opportunity.
“Long term, I think this crisis will allow people to recognize that bitcoin is simply a better way to hold value and spend money than through our current banking system.”
The Venture capitalist and bitcoin investor is known for his prediction of $250,000 for Bitcoin price by 2023.
While a bitcoin exchange-traded fund (ETF) is yet to make it to the market, bitcoin futures have been seeing a lot of activity in the market. Draper said,
“I think companies like Opennode and Lightning Network will make it a lot easier to spend bitcoin, and new companies will take advantage of the blockchain and smart contracts to create a more frictionless and honest system of commerce.”