The world needs a new kind of currency, Bitcoin - Tim Draper Investors
Tim Draper, the founder of venture capital firm Draper Fisher Jurvetson, says the world needs a new kind of currency. Speaking of Stanford, California, Draper, one of the first investors in Bitcoin and a victim of the notorious Mount 2014 Gox hack, spoke to Bloomberg TV about his confidence in cryptocurrencies.
Draper lost about 40,000 Bitcoins in the Mt. Gox hack, which equates to about $ 250,000 at the time. He told Bloomberg TV that his initial response to the hack was that it would be the end of Bitcoin and cryptocurrency.
"I thought that's the end. It's a shame, because it was going to be the currency that was free and open and cross-border and global ... "
In the midst of the turmoil surrounding Mt. Gox's hacking, Draper's foresight and intuition at the time proved to be remarkable. Despite losing a quarter of a million dollars himself, he noted that "Bitcoin only dropped about ten percent on news that Mt. Gox, the biggest Bitcoin exchange stole or lost. all that Bitcoin. For Draper, Bitcoin's resilience to the significant disruption of Mount Gox hack presented, "the world needs meant that." "
When you tap the possibility of Bitcoin potentially falling below $ 1,000 from the current price of around $ 9,000, Draper was unfazed. Recognizing the volatility of the currency markets, but arguing the odds of such a decline was unlikely, venture capital spun the issue around. Bitcoin was volatile compared to fiduciary currencies or were volatile currency currencies against Bitcoin?
"Bitcoin is the future currency," he said, "Why should I sell the future for the past? Why should I go get something weird fiat that is subject to the whims of some government? "
As for the head of Bitcoin, Draper argued that "the world's currency market is $ 8 trillion. I think it will be crypto. I think a lot of it will be crypto. "
Draper almost talks about a new world order created by Bitcoin (and cryptocurrency technology, usually). "The unbanked are bankable by Bitcoin," he says, with banking regulations making it impossible for banks to open accounts for people without sufficient cash. The unbanked, Draper insists, account for half of the world's population.
On the security issue, given the history of pirated exchanges and cryptocurrencies stolen, Draper closes. "My Bitcoin is safer than my dollars in banks. The blockchain was not hacked, he argues, while banks have been "repeatedly".
Tim Draper is a third generation venture capitalist, steeped in the old money pedigree. He set up a university in Silicon Valley with a focus on preparing start-ups to approach venture capital firms. But if his university is an indicator of Draper's position on cryptocurrency, he is extremely optimistic about the new asset class. Draper University has recently added a new course to its program - a crash course on blockchain technology, set to launch in April.
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