Tim Draper an early Bitcoin investor has stated that despite the recent price decline, he remains positive about the value of the original cryptocurrency. Draper believes the asset is still useful as an inflation hedge, and that the current market is “quite similar” to the dot-com bubble implosion, but with higher inflation.
Tim Draper is still Optimistic about Bitcoin
Tim Draper, the venture capitalist known for his early bitcoin investments, has clarified his position on bitcoin’s value in the present market condition. In an interview with CNBC, Draper highlighted that bitcoin’s importance in the crypto and traditional markets‘ fall stems from its inflation-hedging characteristics.
Draper stated to CNBC:
I’m still bullish on Bitcoin because it’s an excellent inflation hedge and will diverge from tech stocks when speculators depart. I believe that as long as interest rates rise, tech stocks will continue to fall.
He expanded on his view of bitcoin as an inflation hedging asset, adding that this feature of the currency can only be appreciated over time, as well as a safe haven from bad governance and excessive regulation.
Excessive Regulation and Bitcoin’s Benefits
Draper believes bitcoin has a future as an alternative finance system apart from the fiat world, having originally bought the cryptocurrency through a US Marshals Service auction of about $30K in bitcoin in 2014.
Draper stated the following:
Despite the challenges that bitcoin investments in El Salvador have caused, the venture investor believes that they have sparked a wave of creativity that is causing companies in the industry to relocate to El Salvador due to crypto-friendly policies and regulations. Finally, he said:
Because our government overregulates, all of the innovators are flocking there, and as a result, we are losing innovation due to excessive regulation.
I have complete freedom to move bitcoin around the world, and the blockchain is protected by hundreds of thousands of miners. There will come a time when I can buy my food, clothing, and housing in bitcoin instead of using a fiat currency controlled by governments and banks.
Despite the challenges that bitcoin investments in El Salvador have caused, the venture investor believes that they have sparked a wave of creativity that is causing companies in the industry to relocate to El Salvador due to crypto-friendly policies and regulations. Finally, he said:
Because our government overregulates, all of the innovators are flocking there, and as a result, we are losing innovation due to excessive regulation.
Also Read: Bitcoin Solves Inflation and Govt. Authority over People’s Wealth
Join our Telegram Channel to get the best notification regarding Pricing Prediction, Trading Analysis, News, Blogs, and interviews.