A far too common misconception about Bitcoin and cryptocurrency is the erroneous notion that ”only criminals use it”. Now, however, famed Bitcoin bull Tim Draper is turning that suggestion on its head – proposing that in five years, only criminals will use cash.
Criminals will want to operate with cash
This claim came during a recent interview with Fox Business, on February 18th. Nevertheless, those familiar with Draper should not be surprised by this statement. Draper has earlier suggested that fiat currencies will eventually become obsolete.
These latest comments are merely a continuation of the reasoning. As most consumers adopt cryptocurrency payments, Draper argued that the blockchain will drive criminals towards traditional cash payments – as these cannot as readily be tracked.
”The criminals will still want to operate with cash, because they catch everybody who is trying to use Bitcoin.”
Moreover, this statement is not entirely unprecedented. In fact, just last August, an agent from the United States Drug Enforcement Administration (DEA) positioned that she prefers criminals to use cryptocurrencies. This mainly related to how the blockchain gives the DEA tools to identify the criminals.
Bitcoin holdings more secure than bank holdings
Nevertheless, Draper’s latest interview with Fox Business also brought some other interesting cryptocurrency-related tidbits from the billionaire investor. In fact, Draper stated that he believes that the funds he keep in the bank are ”less secure” than his Bitcoin holdings.
”My bank is constantly under a hack attack,” Draper noted. Moreover, Draper has been known to highlight the fact that as of yet, nobody has successfully managed to hack Bitcoin’s underlying blockchain technology.
This is not the first time Draper has offered his support for Bitcoin. The investor has previously suggested that Bitcoin is more secure than a US dollar.
Specifically, he has compared liquidating Bitcoin in exchange for fiat currencies to that of exchanging gold for shells. This comparison stems from Draper’s strong-held belief that fiat currencies will one day seem as antiquated as trading with shells.
It should be stated, however, that Draper is far from an entirely objective commentator. He is a notorious Bitcoin bull, and has noted that he owns ”a lot” of cryptocurrency.
With that being said, however, the billionaire investor has certainly proved that he has a neck for identifying worthwhile investments before. Be that as it may, Draper has previously suggested that Bitcoin could trade as high as $250,000 per coin by 2022.
Although Bitcoin is trading at levels above $3,900 at the time of writing, the astronomical levels suggested by Draper are currently still some way off. Nonetheless, it remains to be seen what comes of Draper’s predictions.
Image Source: “Flickr”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.