Billionaire VC Tim Draper Predicts Bitcoin Will Supplant the U.S. Dollar Within a Decade
In the next ten years, bitcoin is predicted to take over as the leading currency, surpassing the dominance of the U.S. dollar in global markets, as stated by billionaire investor Tim Draper.
“Around ten years, maybe a bit sooner,” Draper mentioned during an interview featuring various topics on CoinDesk.
He reinforced his assertion that the value of bitcoin could soar to $250,000 by late 2025, and he believes that after ten years, it will reach an unmatched value against the dollar as its significance fades.
“Once I can pay for essentials like food, clothing, shelter, and taxes using Bitcoin, and it proves to be a superior method for tax collection, there won’t be any incentive to keep dollars. Bitcoin will become the main asset for wealth accumulation,” Draper explained.
“The positive aspect is that banks are now capable of holding both fiat and bitcoin… however, you don’t want to be stuck waiting in line to withdraw your dollars to convert into bitcoin when the change happens.”
Draper cautioned that waning trust in governments could lead to a rush on traditional banks and an overall global shift towards bitcoin as the favored standard, especially observed after the collapse of Silicon Valley Bank in March 2023.
“I received inquiries from 15 companies, all telling me they were unable to meet payroll,” Draper recounted.
“I advise all companies I support to maintain bitcoin alongside fiat in their bank accounts, so they can ensure payroll continues even amid banking failures or if fiat no longer suffices.”
The closure of Silicon Valley Bank was succeeded by the downfall of Signature Bank and was preceded by Silvergate Bank’s liquidation. All three institutions had links to the cryptocurrency sector and faced aftereffects from the fallout of the FTX exchange, as per reports from financial authorities. However, crypto firms contend that their demise was hastened by an underhanded government campaign to cut off access to banking for specific sectors, dubbed Operation Chokepoint 2.0, echoing past initiatives aimed at separating controversial yet lawful businesses from the banking system.
Draper perceives bitcoin as a superior alternative that could ultimately eclipse traditional banks and governmental currencies. This perspective is informed by his childhood experiences, where he was gifted a Confederate $1 million bill, which turned out to be nearly worthless.
“The Confederates lost to the Union, leading to rampant inflation within Confederate currency. People were exchanging exorbitant amounts for meager sums of Union dollars,” Draper noted. “In essence, we are witnessing a similar scenario today.”
Bitcoin versus Stablecoins
Draper identifies as a bitcoin maximalist and sees stablecoins as transitional tools that can facilitate the adoption of digital currency. Yet, he argues that they carry the same flaws as the governmental systems that issue them.
Although U.S. President Donald Trump’s trade policies conflict with Draper’s advocacy for free trade, they accelerate his belief that the U.S. dollar’s value will diminish. The dollar index has seen nearly an 8% decline this year, reaching a low not seen since April 2022. Speculation suggests the Trump administration is exploring methods to further devalue the dollar to boost U.S. exports. Nonetheless, Draper remains optimistic that the government will lower tariffs, enabling trade partners to purchase more American goods and restoring a competitive market.
Domestically, Draper expresses greater confidence in the potential for technological innovation, noting that the Securities and Exchange Commission and other federal agencies have become “more supportive of creativity” and are moving away from a regulatory framework centered on enforcement.
“Let’s Begin Communicating with Animals”
His investment portfolio extends into genetics, especially highlighted by his early investment in Colossal Biosciences, which made headlines by creating a new species of dire wolf and gene-editing “woolly mice” inspired by woolly mammoths. These de-extinction efforts aim to revive biodiversity on Earth, and Draper believes they may eventually enable humans to communicate with animals.
“Dogs can detect odors 10,000 times better than we can,” he explained. “I theorize that when they are particularly happy and fond of you, they sneeze as a form of storytelling, sharing all the scents they’ve encountered.” Draper also envisions that advancements in genetics and artificial intelligence will allow us to decode bird communication and enhance our understanding of weather patterns through dialogue with ants about their population management.
“Let’s initiate conversations with animals. It will be fantastic, and we are progressing toward that,” according to Draper. “It may take time; we’re looking at a 50-year horizon.”
Regarding artificial intelligence, while some skeptical developers warn that AI might ultimately regard humans as mere energy sources, Draper remains an unyielding optimist.
“I have faith that humans will adapt,” he expressed.
As AI automates human jobs, Draper believes people will adjust and find new ways to contribute, resulting in a significant enhancement in quality of life. He envisages a future where humans merge with AI, programming embryos and linking human brains to the internet and other technologies.
“It will be astonishing for anyone alive today looking back 50 years from now, as they will realize, ‘What a tough life they had, confined to Earth, having to consult their phones for information instead of intuitively knowing what they needed to learn,’” Draper remarked.
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