Although Bitcoin and virtual currencies lost an important part of their value during the last weeks, Tim Draper believes trillions of dollars of fiat would move into virtual currencies. The venture capital investor said that two-thirds of all the world’s currency value would eventually move to cryptocurrencies.
Draper Talks About Bullish Future
During the World Crypto Con Conference in Las Vegas, Tim Draper talked about virtual currencies and the crypto market. According to him, Bitcoin will be leading the currency market and would allow people to easily do what they need with virtual currencies.
At the time of writing this article, the cryptocurrency market has a market capitalization of $122 billion. Meanwhile, the fiat value around the world is $86 trillion. Nevertheless, according to Mr. Draper, virtual currencies are cheaper to operate and work in a more frictionless way. Because of this reason, he thinks that an important amount of fiat users would move to the crypto market.
About it Draper explained:
“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.”
Although Bitcoin is the largest virtual currency in the market, it has received attacks by those that say that it is slow and expensive to use. Developers are currently working in order to launch the so-called Lightning Network (LN). The LN is expected to enhance Bitcoin’s performance by allowing the network to be less congested.
He then said that he wants to be able to raise a fund that is completely in Bitcoin and invest everything in Bitcoin.
“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,” he explained. “And then no accounting fees, and it’s done automatically.”
Draper believes that by 2022, Bitcoin could be worth as much as $250,000. Nonetheless, we are still far from that number. Currently, Bitcoin has a market capitalization of over $70 billion and each BTC can be purchased for over $4,000.