The news of the depreciation of Bitcoins has given something to talk about.
Bulls and bears talk about how the respective bullish and bearish trends are reflected in the current cryptocurrency market graphs. Depending on the version we listen to Bitcoin will be a thing of the past or will resurface gloriously among the ashes. Tim Draper is located in this second spectrum.
The renowned venture capitalist made a challenging statement asserting that Bitcoin will replace fiat money.
We know that Bitcoin is going through a bad time, as it lost more than 80% of its total market capitalization this year. But the decline has not discouraged Tim Draper from putting his trust in cryptography technology.
At the World Crypto Con conference in Las Vegas, Draper stated that half of the fiduciary money forks would make it possible to switch to cryptocurrencies in the immediate future, leading to Bitcoin leading the new currency market that will allow people to easily spend , invest or do what you want with cryptocurrencies.
Nouriel Roubini, a renowned American economist, called Bitcoin “the mother of all scams”, claiming that its value would eventually collapse. Warren Buffet, a Nobel Prize-winning economist and one of the richest men in the world, had also called Bitcoin “an asset that does not create anything.”
But for Tim Draper, the decline only reflects a short-term shock and Bitcoin would eventually be a response to all the problems of an economy based on current money. The bull said that developing countries would find that digital currencies were more attractive than countries with their high GDP linked to fiat money.
The cryptocurrency market currently stands at around $ 130 billion, while the fiduciary is worth about $ 86 billion. Bitcoin and similar assets, according to Draper, are cheaper to operate and have less friction than fiat, which would allow an investment movement of at least $ 43 trillion in the cryptographic space.
“I want to say that just because they cost less, it's going to be better for people,” he added. “And that's why they're going to go into cryptography, and they're going to get away from the political currency, which they call fiat.”
Draper in turn reaffirmed his position that the value of Bitcoin will increase to $ 250,000 by 2022. According to him, people would be less likely to link their investments with assets whose price actions are driven by political forces. “I would rather have a global currency than one that is linked to a political force,” Draper added.