Tim Draper Says Bitcoin Is Better Than Fiat and Using It as a Conventional Currency Will Be a Leap Forward

Tim Draper Says Bitcoin Is Better Than Fiat and Using It as a Conventional Currency Will Be a Leap Forward

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.

So right now, there’s $86 trillion of political currency. They call it ‘fiat’ currency, but it’s political. And I believe that that currency will slowly be eaten up by a better currency which is global, decentralized, frictionless. It’s just a better currency. And I think Bitcoin will be one of five cryptocurrencies.

Tim Draper

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.

Once everybody starts using it, they won’t even know the difference. Suddenly they’re going to be like, hey there are some cool things I can do with Bitcoin or other cryptocurrencies that I couldn’t do with dollars.

Tim Draper

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.

I think that these [institutional platforms] are interim steps or bridges towards a world where we are watching borders dissolve and the world opening up.

Tim Draper

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.

SEC Regulations

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.

I think the SEC is torn and I think it’s okay because they’re torn between like going after the fraudsters who are taking advantage of the elderly, and making sure that all that technology does stay in the US.

Tim Draper

Governments

Draper is looking forward to the potential of blockchain technology and the smart contracts in minimize government corruption.

I think the government can be transformed is this big, huge way… You have a token that’s global and decentralized. The token is now on a perfect ledger called blockchain, so you don’t require all this special accounting because the accounting is already done.

Tim Draper

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.

You’re seeing China fighting back and losing all their entrepreneurs. And you’re seeing Japan, saying Bitcoin is a national currency, bring it on.

Tim Draper

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