Tim Draper: Facebook’s Entry Into the Crypto Industry Will Enhance Mainstream Adoption

Renowned American venture capitalist, Tim Draper, who has been steadfast in advocating for the adoption of cryptocurrencies as a viable investment alternatives, is now praising the entry of Facebook’s Libra into the market.

In an interview, Draper gave an insight of some of the developments in the crypto space. During the interview, the popular crypto investor welcomed Facebook’s entry into crypto space saying that it is a positive step towards endorsement of the cryptos.

He however, said that there are few aspects that the Libra Association needs to improve in its infrastructure. Draper explained that currently Bitcoin still remains in the pole position in the ecosystem due to its strong infrastructure. He said:

“They’re (Facebook) way late into the game. Eventually, they’ll fall into the same place as all the other cryptocurrencies where they say Bitcoin’s better!”

Draper said that Facebook’s Libra crypto is bound to revolutionize the industry if the few concerns in regards to the infrastructure are addressed. The popular venture capitalist said that the popularity of Facebook and its affiliates around the world will no doubt help in popularizing the new kid in the market.

During the interview, Draper said that Bitcoin was like buying virtual swords in a gaming version but in reality it holds value. He explained that people must be willing to take risks when it comes to investing in virtual currencies.

Draper supported his crypto investment in the last couple of years that have exhibited his belief in the ecosystem. He reminded his audience about his accurate forecast that Bitcoin would hit the $10,000 mark in terms of trading value which he made three years ago.

Enact Blockchain and Crypto Friendly Regulations

Draper noted that although the majority of political leaders may view the adoption of Bitcoin in mainstream as a positive progress in society, he claimed that some bureaucrats view it as a major threat to their existence. He explained:

“Governments can also benefit from the technology for keeping perfect records and collecting taxes. Also, people get wealthier if there’s less friction to trading.”

He explained that mass adoption of blockchain technology in government processes and procedures will enhance service delivery to the public. It will also help to cut the costs of running the government and that's why government bureaucrats are wary of the technology as they risk being redundant.

Draper called on the US government to come up with friendly regulations to govern the technology. He explained that too many regulations will impede the development of blockchain technology and even drive the innovation away to countries that are blockchain and crypto friendly like Japan and Malta.

Draper also said that even though big sharks like Warren Buffet might be disinterested in investing in cryptos or outside the fiat markets, majority of the young individuals that are in debt of the fiat currency see cryptos as the alternative towards achievement of financial stability.

Will Facebook’s Libra be a game changer in the crypto industry? Share with us in the comments section below.