Venture capitalist Tim Draper shared some of his views on the industry in the recently concluded Crypto Invest Summit
Aside from being a venture capitalist, establishing various VC firms and a Silicon Valley university dedicated to entrepreneurship, Tim Draper is an avid Bitcoin enthusiast. He was interviewed by AMTV and Ran NeuNer in the crypto focused LA conference. Finrazor delivers a summary of the points he highlighted.
Bitcoin’s $250,000 Future
Draper maintained his belief that the leading cryptocurrency will climb to a quarter of a million dollars by the year 2020. He said by that year the total market capitalization of cryptocurrencies will amount to almost $10 trillion. Bitcoin’s value will be $4 trillion of the overall market cap.
To contrast this, Draper assessed that current fiat is valued at $86 trillion. He called fiat a political currency and pronounced Bitcoin to be the better of the two.
Using Crypto Like Fiat
Draper deduced those who have money remain crypto skeptics and the ones who hinder crypto adoption are officials.
He pointed out that entrepreneurs play a momentous role in the mass adoption of cryptocurrencies. A leap forward can be made when people will begin using digital currencies as a day-to-day means of buying goods, without noticing the distinction between crypto and fiat.
Draper considered digital currencies as a store of value; ideal for remittances and extraterritorial payments.
Effects of Institutional Involvement
The venture capitalist was asked if institutional involvement will turn out to be an upset to the crypto industry to which he replies that conventional finance and digital assets are two separate and unique entities. One is centralized and the other is not.
Will News Still Have a Sway on the Market?
Recently the news, even encouraging ones, such as the launch of Fidelity Digital Assets, regulatory acceptance from some countries, and a possible US SEC ETF decision, did not hold much persuasion in the way the market moved.
But Draper is optimistic. Without giving a figure, he said that Bakkt’s impending December launch of BTC futures will be able to lift the market.
According to Draper, he sees the significance of an SEC ruling to the market and investors alike. A more clear-cut approach on regulations would be of an advantage to investors when they go into the crypto market.
Draper is looking forward to the potential of blockchain technology and the smart contracts in minimize government corruption.
China is losing its business visionaries due to the government declaring cryptocurrencies as illegal, while other territories such as Singapore have vague regulatory issues. He stated these issues caused Binance to move from China to Singapore then to Malta, a crypto-friendly country.