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Two years ago, venture capitalist and well-known Bitcoin investor Tim Draper publicly stated that Bitcoin will reach $ 250,000 by 2022. However, as Bitcoin continues to gain interest from investors, Draper revealed to Cointelegraph in an interview that a $ 250,000 price prediction may have been conservative: “I think it will definitely hit it. But many people think $ 250,000 was a little too conservative. ”
Draper also discussed the impact of the COVID-19 pandemic on the blockchain space, noting that tokenization will play an important role in solving problems related to global shipping and real estate. Additionally, Draper shared his thoughts on decentralized finance, or DeFi, saying he wants “‘DeFi’ the venture capitalist business” going forward.
The full interview can be viewed on Cointelegraph’s YouTube channel.
Cointelegraph: What are your thoughts on how the COVID-19 pandemic is affecting the blockchain space?
Tim Draper: A couple of things happened after the pandemic. Some people say that the time for us to adopt new technologies has been reduced. People are stuck in place and say, “Yeah, why don’t I try to see what virtual reality is like for distance medicine or distance education?” Some of the things we have argued over time have attracted a lot of attention during the pandemic because people have not been able to leave their homes.
The other thing that happened was that when the US government printed $ 13 trillion, it immediately diluted the dollar by 20 or 30%. It was a real shock to the system. People then said, “Well wait, where do I put my money? Do I put it in gold or do I put it in Bitcoin where it is a great store of value? “Many people have said they want to transfer their money in Bitcoin.
Another thing is that millions of people will die from this pandemic. But 135 million people will starve as a result of the government’s reaction to the pandemic. Government blockades have blocked several supply chains around the world. As a result, people are starving.
But whenever there is a crisis, there is a great opportunity to do something extraordinary. When there was a financial crisis, for example, Satoshi Nakamoto invented Bitcoin. And I think as we are able to enforce more restrictions and more accounting systems around the blockchain, we will be able to use Bitcoin interchangeably with dollars.
CT: Right now, the world is in the midst of a crisis. What technological advance will help humanity come out stronger on the other side?
TD: Tokenization will advance. We’re seeing this in real estate, global shipping, and anything where valuables need to be moved between parties. Now, these items can be transferred to the internet, which is so useful for industries like real estate and global shipping. In the case of real estate, you could buy a piece of my home, or you could symbolize my property and own a piece of that property without having to buy the whole thing.
Tokenization and shipping are also a great way for people to own containers to track their entire IoT. I think we’ll see some amazing breakthroughs in shipping and also with any kind of logistic use case.
CT: Another thing we are seeing is the rise of DeFi. Do you think DeFi is just a bubble or will this actually drive adoption?
TD: I think DeFi had to happen. People have been sitting on their Bitcoin or their other cryptocurrencies just watching as they appreciate the value instead of having that money being used. But you want your money to be constantly used.
In the end I want to “DeFi” the venture capital business, where I raise a fund only in Bitcoin, invest it only in Bitcoin, and entrepreneurs pay their employees and suppliers all in Bitcoin. Hence, all accounting through that system should be on the blockchain. My relationship with the entrepreneur and my relationship with my investors can all be on a smart contract, so that if there is a big winner, it can all be spread across many different Bitcoin wallets. I think it will happen sooner or later, but at the moment the accounting is not set up. We are now seeing the first use cases of DeFi, but in the long run, all accounting, all taxes, all will be done using Bitcoin.
All that DeFi will then become a bridge to “ReFi”, where it is retail and we are using it as the primary currency for all of our purchases. It will only become a part of the world economy. I think this will include Bitcoin, along with four or five other cryptocurrencies.
Ultimately, I think fiat currencies will slowly disappear. And I think governments that are saying, “Oh, I’m going to make a centralized cryptocurrency that’s tied to my country’s currency,” well, that defeats half the point. Half of the purpose of doing this is that your currency is not tied to a political force. You can’t inflate against debt and you can’t operate like Argentina for 100 years. You have to trade fairly across the board. This is the beauty of what we have in cryptocurrency, which governments don’t have with fiat currency.
CT: And are you still true to your prediction that Bitcoin will reach $ 250,000 by 2022?
TD: Yes, Bitcoin will reach $ 250,000 by 2022 or early 2023. That $ 250,000 is actually based on a 5% market share of the currencies. I think it’s easily achievable, especially as more and more women are starting to use Bitcoin, as they control 80% of retail spending. It is really interesting that there was once one in 15 Bitcoin wallets that women had and now it is moving forward. When women start using those wallets, they will realize that it is much easier. I transferred most of my money when I felt right into Bitcoin. And so, yes, I think it will definitely hit this one, but a lot of people think it was a little too conservative.
