Legendary BTC investor and venture capitalist Tim Draper, who bought nearly 30,000 btc for about $19 million at the 2014 U.S. Marshal Service Auction, believes the world will abandon green bitcoin within a decade. The founder of Draper Associates, speaking in an extensive podcast interview this week, believes that software-based funds are “better technology” than government-issued currencies, and predicted the tipping point as early as 2035.
Bitcoin and US dollar
“How long does the stadium estimate – when Bitcoin will replace the US dollar -[is] In ten years, there may be less similar things. “He insists that when trust in banks and sovereign issuers, “the moment” will come for physical cash.
Draper’s beliefs depend on two pillars he has reiterated over the years: the fixed supply of Bitcoin and the necessity of global licensed commerce. He believes that there is about 19.86 million BTC in circulation (95% of the 21 million oil caps) that fiat currencies are structurally prone to depreciation. The veteran investor’s early bets include Hotmail, Skype, Tesla and SpaceX, likens today’s inflationary environment to the collapse of the Allied currency that his father described decades ago: “No one wants Allied funds…it’s no longer valuable because the alliance won the war.”
Regulatory endings are strengthening his paper. The Office of the U.S. Currency Auditor General’s Office first confirmed in 2020 that chartered banks across the country may provide custody services for crypto asset management, and last week the agency reiterated that position in an updated letter of interpretation, stressing that such activities are allowed if conducted “a safe and reasonable way.” Draper cited these rulings, saying that banking is now a “bridge” between old money and Bitcoin.
The market seems to reward this narrative: Bitcoin’s transaction distance is over $103,500, bringing the network through Spot-Etfs for about $2 trillion. Draper reiterated his long-standing forecast that BTC would reach $250,000 by the end of 2025, but he now sets his target as a waypoint. “You go out for ten years and the answer is unlimited because there won’t be a dollar,” he said. Once taxes, payrolls and daily purchases can be settled in nature, “there won’t be any reason to hold the dollar.”
Draper acknowledged that the dollar’s fixed stablecoin would remain relevant, but called it a “bridge to bitcoin” and it still inherits the political and inflationary risks of its reserve currency. He believes that the government itself will eventually become the node operator and the Treasury holder because “it’s a better way to collect taxes.”
Skeptics point out that the reserve currency situation is historically tricky, with the U.S. influence supported by political power and the world’s deepest capital markets. However, Draper dismissed the apocalypse fear of technological destruction, credit for Teddy Roosevelt’s remarks: “Man or Woman in Arena.” He urged the company to keep enough BTC on its balance sheet to pay for the banking crisis and said families who failed to hold their living expenses for at least six months in Bitcoin were “irresponsible”.
At press time, BTC traded at $103,747.
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