Fiat Currencies are Political Currencies Says Tim Draper

By Chetna Phour

During a recent panel discussion at the Web Summit Conference, the American venture capital investor and Silicon Valley billionaire Timothy Cook Draper reaffirmed his prediction about Bitcoin price. Despite the price struggle of 2018, the leading cryptocurrency expert stuck to his prediction and said that the price of Bitcoin will reach $250K by 2022.

Draper believes that the current price struggle of Bitcoin is because of the lack of mainstream utility. Tim said that internet started in the same way. Initially, the internet was a big wave, and then it crashed down but when the next wave came it was more concentrated and bigger. Tim believes that the same thing will happen to Bitcoin. Currently, people are not yet accustomed to cryptocurrencies which is leading to decreased demand. Once people become familiar with cryptocurrencies, the demand will increase, and the price of digital assets will rise.

In April this year, Tim Draper first time predicted that the price of Bitcoin would surge up to $250,000. Tim said that

“Believe it, it’s going to happen – they’re going to think you’re crazy but believe it, it’s happening, it’s going to be awesome!.”

In the recent Web Summit Conference when asked whether he still thinks the price of Bitcoin will reach to $250K and give 40 times return in just four years, Tim said that

“Yes. We are talking […] about five per cent market share to get to $250,000. That seems like a drop in a bucket, and all we need to really do is make it so that Bitcoin can be used to buy Starbucks coffee, and all of a sudden the world just opens up and then they say ‘I’ve got this choice.’ […] Do I want a currency that I can take from country to country […] or do I want one that sticks me in one country or one geographic area and I can’t use it anywhere else?”

Tim believes that the cryptocurrencies do not have boundaries and they can be used freely in every corner of the world. An in this era of globalization people do not want to stick to one geography or one country. Draper also said that fiat currencies are political currencies which are determined by some weird political parties so we should not trust fiat currencies. Central banks issue currencies whenever they feel the requirement. Cryptocurrency would cede the control of money from banks to common people.