Tim Draper was an early investor in bitcoin and has stated that he remains optimistic about its value, despite the recent downturns. Draper believes that the asset is still valuable as an inflation hedge, and that the market we are navigating right now is “very similar” to the dot-com bubble burst, but with higher inflation.
Tim Draper Still Bullish On Bitcoin
Tim Draper (the venture capitalist best known for investing in bitcoin early on) has spoken out to explain his views regarding bitcoin’s current value. CNBC’s Draper stated that bitcoin is important in both the current downturn and the recovery of traditional markets. This was due to its inflation protection traits.
CNBC spoke with Draper
I’m still a bull on Bitcoin because it’s a great hedge against inflation, and as speculators leave it will diverge from tech stocks. As long as interest rates rise, I believe tech stocks will continue to fall.
He expressed his belief that bitcoin could be used as an inflation hedge asset and stated that it can only be appreciated in the long term. Additionally, the cryptocurrency provides protection against poor governance and overregulation.
Bitcoin’s Overregulation and Advantages
Draper — who invested in bitcoin first via an auction of almost $30K in bitcoin organized by the U.S. Marshals Service back in 2014 — believes that bitcoin has a place in the future as an alternative finance system separated from the fiat world.
Draper said:
I can freely move bitcoin all over the globe and have the security of the hundreds of thousands or miners that watch the blockchain. In the future, I will have bitcoin to buy food, clothing, shelter, and other necessities.
He also believed that, despite the many problems bitcoin investments in El Salvador have caused, the crypto-friendly policies and regulations had sparked a surge of innovation which is making it easier for businesses in this sector to relocate to El Salvador. He said:
The innovators are all going there because our government is overregulating and so we’re losing innovation because we have too much regulation.
What do you think about Tim Draper’s remarks on bitcoin? Comment below.
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