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Tim Draper, the destroyed of venture capital firm Draper Fisher Jurvetson, says the the public needs a new kind of currency. Speaking from Stanford, California, Draper, an early investor in Bitcoin and a schnook of the infamous 2014 Mt. Gox hack, spoke to Bloomberg TV of his confidence in cryptocurrencies.
Draper wasted around 40,000 Bitcoins in the Mt. Gox hack, equivalent to roughly $250,000 at the time again. He told Bloomberg TV that his initial response to the hack was that it would be the end of Bitcoin and cryptocurrency.
“I brown study that’s the end. It’s too bad, because this was going to be the currency that was free and make known and cross-border and global…”
Amid the turmoil surrounding the Mt. Gox hack, Draper’s providence and intuition at the time proved remarkable. Despite losing a quarter of a million dollars himself, he prominent that “Bitcoin only dropped about ten percent on the news that Mt. Gox, the biggest Stock Exchange in Bitcoin basically stole or lost… all that Bitcoin.” To Draper, Bitcoin’s suppleness in the face of the major disruption the Mt. Gox hack presented it, “meant the world dearths this.”
When pressed as to the possibility of Bitcoin potentially falling forsake below $1,000 from the current price around $9,000, Draper was unfazed. Owning volatility in currency markets but arguing the chances of a such a fall were objectionable, the venture capitalist spun the question around. Was Bitcoin volatile against fiat currencies or were fiat currencies eruptive against Bitcoin?
“Bitcoin is the future currency,” he said, “Why would I promote the future for the past? Why would I go grab some weird fiat apparatus that’s subject to the whims of some government?”
As for Bitcoin’s upside, Draper dissuaded that “the world market for currency is $86 trillion. I think that disposition be crypto. I think a very large portion of that will be crypto.”
Draper indicates almost of a new world order created by Bitcoin (and cryptocurrency technology, for the most part). “The unbanked are bankable through Bitcoin,” he asserts, with banking pronouncements making it unfeasible for banks to open accounts for those without enough cash. The unbanked, Draper insists, represent half of the world’s people.
On the question of security, given the history of exchanges being hacked and cryptocurrencies being prigged, Draper stood firm. “My Bitcoin is more secure than my dollars in the banks.” The blockchain has not been cut, he argues, whereas banks have been “over and over”.
Tim Draper is a third-generation hazard capitalist, steeped in old money pedigree. He has established a university in Silicon Valley focusing on arranging startups to approach venture capital firms. But if his university is an indicator of Draper’s position on cryptocurrency, he is extremely bullish on the new asset class. Draper University has recently enlarged a new course to its curriculum – an intensive course on blockchain technology, set to launch in April.
Quirked image from Flickr.
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