Early Bitcoin adopter Tim Draper is convinced that cryptocurrencies will soon dominate the financial sector. Draper told Forbes, “I believe that Bitcoin and crypto will drive most of the commerce of the world.” The Silicon Valley venture capitalist has had confidence in Bitcoin since its initiation in 2009.
Early Crypto Adopter and Believer
In the past, Draper firmly supported Bitcoin and other cryptocurrencies. He even pointed out that cryptocurrency would replace fiat currencies in a somewhat short and ambitious time span.
“In five years, if you go to a Starbucks or McDonald’s and try to buy a burger or coffee with fiat currency, the person at the counter is going to laugh at you.”
Draper’s first investment with the pioneer cryptocurrency was $250,000 when it was priced at a mere $6. All of his investments went down the drain, however, as Mt.Gox, a major Japanese crypto exchange, got hacked in 2014.
The losses did not deter Draper, and a few months later after the exchange drama, the famous venture capitalist purchased 30,000 bitcoin at a U.S. Marshals Service auction. These bitcoins were seized as part of a raid on the Silk Road dark-web marketplace. He paid about $18 million with a single bitcoin sitting at $600.
The crypto space is an unforgiving market, with some making heaps of profit and some losing it all. But for those that discovered Satoshi’s vision early enough, the rewards have far outweighed the losses.
DFJ Venture Capital, where Draper works alongside Steve Jurvetson and John H. N. Fisher, has invested in companies as groundbreaking as Skype, Hotmail, and Tesla Inc. While the firm hasn’t outright sponsored an initial coin offering (ICO), the experience at Draper’s disposal adds quite a weight to his words.
“I don’t know why anyone would want to go back to fiat when crypto is distributed, secure and global, while fiat is subject to the whims of political forces.”
His vision extends beyond bitcoin as well, as he has reportedly invested in over 40 different altcoins, further affirming confidence in the growth and future of the crypto space. One such investment included the Tezos ICO, which raised more than $230 million.
Will digital currencies replace fiat currencies in the near future?