In recent weeks, cryptocurrencies have been criticized for their lack of intrinsic value, with many skeptics labeling them commodities rather than money. Silicon Valley venture capitalist and Bitcoin investor Tim Draper, however, praises Bitcoin as the future of currency.
Draper — whose past investments include companies like Skype and Tesla — jumped into bitcoin shortly after he was introduced to it in 2009. In 2014, he lost 40,000 of his bitcoins when Mt. Gox, one of the largest cryptocurrencies in Japan at the time, was hacked. In an interview with Bloomberg, Draper said he first thought the Mt Gox debacle meant the end of Bitcoin.
He changed his mind when he realized the relatively small impact the theft made on the market. Draper noted the hack made Bitcoin “drop about 10%,” which he found remarkable given the enormous sum that was stolen. To Draper, this small drop proves Bitcoin’s resilience, thereby proving the need for Bitcoin:
“The world is wide open. They need this new kind of currency. They need a global currency that’s not subject to the whims of some government or another. It’s open. It’s transparent. It allows you to do business.”
As an early investor in Bitcoin, Draper has experienced some of the most turbulent times in crypto. Despite this, he continues to be optimistic about the potential of cryptocurrency, Bitcoin in particular. When asked whether he would sell his Bitcoin for other crypto, Draper answered he would not give up his coins, stating, “Why would I sell the future for the past?” Later prompted on the question of Bitcoin as a sound investment for “regular people,” he decided to comment on Bitcoin’s security.
“My Bitcoin is more secure than my dollars in banks.”
Throughout the years, Draper has remained consistent in his defense of crypto. Recently, it seems like he is doubling his effort to combat the notion of Bitcoin as a bubble. At the Blockchain Technology and Evolution conference in San Francisco last month, Draper shared his vision about the imminent adoption of Bitcoin:
“In five years, if you go to a Starbucks or McDonald’s and try to buy a burger or coffee with fiat currency, the person at the counter is going to laugh at you.”
If Draper’s predictions are correct, then the true rise of Bitcoin is just around the corner. Toward the end 2017, many social media users were already dubbing 2018 the year Bitcoin becomes mainstream. Yesterday, Ellen Degeneres talked about Bitcoin on her show, suggesting that Bitcoin is indeed making its way into the mainstream media. As for Draper’s vision, only time will show whether Bitcoin is the future of currency.Trade on BTC/USD