Tim Draper believes in cryptocurrency. He believes that radical change is inevitable and in a recent talk he went as far as to say, “we’re going to see more change coming from Bitcoin and the blockchain than we did from the internet.” That’s a bold prediction but Draper makes a good argument for why this will be the case.
The Case for Blockchain Being Larger than the Internet
Draper’s reasoning for blockchain being more transformative than the internet is the number of industries it’s going to affect. “Bitcoin and the blockchain are so fundamental that they’re going to have an effect on real estate and insurance and healthcare and government. And they’re all going to be completely transformed by this new technology.”
He goes on to say that although the internet has transformed many industries, governments still run the same way, insurance hasn’t changed significantly nor has buying real estate. But with blockchain, argues Draper, all of these things stand to be disrupted.
“Bitcoin and the blockchain have an amazing future. This is going to transform society. Geographic borders are going to fall, governments are going to have to compete with each other and we are going to have an extraordinary time.”
Why Cryptocurrency is Superior to Fiat
Listening to Draper it’s easy to hear the passion in his voice when he speaks about cryptocurrency and why it will eclipse government backed fiat.
“There is about a hundred-trillion dollars’ worth of fiat currency out there. Fiat currency is poor currency. It’s tied to political whims, it’s tied to political parties, bureaucrats control it, it’s not really that good for you. And all of the new best brightest engineers are working on cryptocurrencies.”
Further, Draper notes that, “there’s a real need for a currency that’s global. There’s a need for an opportunity to store value that isn’t subject to the whims of some political force.”
Draper’s Prediction for the Cryptocurrency Market Cap
In guessing the potential growth in the crypto market, Draper says, “my belief is that over some period of time the cryptocurrencies will eclipse the fiat currencies. So we’re looking at about a thousand times on what we’ve got now.”
Draper is also bullish on adoption. “My prediction for right now is that in five years if you go into a Starbucks or a McDonald’s and you try to buy a burger or a coffee with fiat currency, the person at the desk is going to laugh at you.”
Finally, when asked about when he foresaw a market recovery, Draper issued a warning, “if you’re buying cryptocurrencies, please understand what it is you’re buying. Make sure you understand that what you’re buying is a movement. And if you think that movement is going to take off and be something really extraordinary, terrific. If you think that, hey, I might be able to buy it and sell it at a higher price because I hear that crypto is a big deal, don’t do it.”
Wise words given the current bear market. And although it’s tough going now, if Draper’s prediction comes true in the coming years crypto is in for a wild ride to the top.
Image Source: “Flickr”