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It seems like the crypto community is not scared by the latest bitcoin sell-off, with major investor Tim Draper predicting transition to cryptocurrency in the near future.
Despite a huge cryptocurrency market crash, Tim Draper believes the value of bitcoin will keep going higher in the upcoming years. Speaking to Thiel Macro’s Mike Green earlier this month, the billionaire said he believes virtual currencies will eventually overtake fiat currency, making up two-thirds of the world’s currency value.
“Down the road, when we can easily spend, or invest, or do whatever we want with cryptocurrencies—they’re frictionless, they cost you less,” Draper told Green during the World Crypto Con in Las Vegas, as Forbes reported.
“I mean, just by that alone, just that they cost you less, it’s going to be better for people. And so they’re going to move to crypto, and they’re going to go away from the political currency—they call it fiat.”
Bitcoin has plunged below $4,000 last week, losing around 80% from its peak of $20,000 recorded in December, 2017. The cryptocurrency’s price dropped by around 40% in just two weeks this month, marking the biggest sell-off since April, 2013, when bitcoin lost about 44% of its value.
The overall crypto market, meanwhile, slipped below $120 billion, losing $89 billion. At the time of writing, bitcoin stands at $3,801, while the market is valued at $124 billion, CoinMarketCap shows.
Transition to Cryptocurrency is About to Happen
Some countries, Draper argued, understand that the transition is imminent and are already trying to move to digital currencies.
“That’s the way it’s going to move. And so the countries that are forward thinking are saying, this is the way it’s going to be. So we’re going to make a huge mistake by trying to cling to our old currency. And that’s why you’re seeing the smaller countries all say, ‘yeah, we want bitcoin, we want initial coin offerings (ICOs) here, we want blockchain. We want all of these things in our country,” he added.
As far as bitcoin’s future, the investor still believes the cryptocurrency will reach $250,000 by 2022. Besides, he is confident the ratio of virtual currency to fiat money will soon be 50-50, as it will become easier for people to invest bitcoins than dollars.
Comparing the cryptocurrency to dollars, Draper noted he would prefer to invest in the currency that is not controlled by any political force and is “frictionless and global.”
Draper Plans to Launch Bitcoin Venture Fund
Draper also revealed during the interview that he’s considering to raise a bitcoin venture fund.
“Eventually, I want to be able to raise a fund that is all bitcoin, invest it all in bitcoin into a bunch of different companies, and have them pay their employees and suppliers all in bitcoin. And then no accounting fees, and it’s done automatically. And it’s all built into smart contracts so that if one of those companies gets sold, I push a button, it just shoots into all of their bitcoin wallets,” he said.