Venture capitalist says bitcoin could be bigger than the internet
Venture capitalist Tim Draper knows a thing or two about forecasting and properly investing money. The 59-year-old was an early investor in Tesla, Hotmail, and Skype, but more recently his technology of choice has been bitcoin.
At the Intelligence Squared U.S. debate presented in partnership with Manhattan Institute’s Adams Smith this past weekend, Draped kept being bullish on bitcoin and said the digital currency could be bigger than the internet, as reported by CNBC.
When Draper was asked how bitcoin compared to his early investments the venture capitalist was quick to point out that the digital currency will be bigger than all three combined.
“It’s bigger than the Iron Age, the Renaissance. It’s bigger than the Industrial Revolution,” Draper said. “This affects the entire world and it’s going to be affected in a faster and more prevalent way than you ever imagined.”
That Draper is all in on bitcoin is no surprise. He bought 30,000 bitcoins in 2014 in a U.S. Marshals Service auction and is still in possession of them. If true, Draper is sitting on $270 million in today’s price. Additionally, Draper has forecasted that bitcoin will hit $250,000 by 2020.
Speaking at the debate, Draper talked about a scenario that he could see play out in the future.
“In five years you are going to try to go buy coffee with fiat currency and they are going to laugh at you because you’re not using crypto,” Draper said. “I believe that there will be a point at which you will no longer really want any of the fiat currency.”
While Draper, and many others, are all in on bitcoin, and cryptocurrency as a whole, there’s plenty of pushback against the digital currency.
One of those is John Williams, the head of the San Francisco Fed and the nominee for New York Fed president. During a speech last week, Williams noted that “cryptocurrency doesn’t pass the basic test of what a currency should be,” reports CNBC.
To make matter worse for cryptocurrency enthusiasts, earlier this year, International Monetary Fund chief Christine Lagarde said that cryptocurrencies are mired in dark activities. But at least in that regard, there’s evidence that put those claims to bed.
Quebec Chief Scientist Rémi Quirion argued in a post on the Agence Science-Presse and Fonds de Recherche du Quebec website — a government research fund — that facts do not support the claims that there’s high-use for bitcoin in illegal activities.
Bitcoin keeps gaining notoriety in the mainstream despite its up and downs in the marketplace but one thing is certain, there is still a battle waging as it relates to bitcoin’s legitimacy going forward.