Tim Draper remains an influential voice in the cryptocurrency community; if for no other reason than his bullish predictions.
In 2014, Draper predicted that Bitcoin would be worth $10,000 in three years. The prediction turned to reality when Bitcoin was soaring above and beyond this amount to reach an all-time high last December.
Tim Draper told Forbes in an exclusive interview:
“I didn’t want to make any predictions after that for a long time because I wanted to let the dust settle. For a while now I have been thinking that it was time for another prediction while introducing my new book, How To Be The Startup Hero: A Guide and Textbook for Entrepreneurs and Aspiring Entrepreneurs.”
Draper’s prediction, that led him to come up with $10,000 by 2017, was based on the idea that Bitcoin was going to be easy enough to use in the future and that people would be able to start trading with it and using it as a store of value.
He believes people are going to be able to spend cryptocurrencies like Bitcoin, in mainstream situations. Cryptocurrencies will be something people can access on their phone as it will eventually replace credit cards. He truly believes that cryptocurrencies will replace fiat currencies.
As of now, there is about $80 trillion worth of fiat currency in the world. As cryptocurrencies are expanding, Tim Draper believes that fiat currency circulation in the coming time will fall from $80 trillion to $30 trillion and will be replaced by cryptocurrencies eventually as it will grow to $100 trillion.
He predicted that Bitcoin might end up with a 20% to 30% market share. As he explains the scenario, he believes the asymptote will be somewhere around $130 trillion, but only maybe $100 trillion would be cryptocurrency and 20% of that would be Bitcoin.
He is of the view that Bitcoin has a network effect. For instance, if a user has Bitcoin and no one else does, then it is worthless. But if two people have Bitcoin, and recognize it, then a connection is created. With it the connection grows – it’s the square of how many nodes are in the network. Right now there are 40 million Bitcoin wallets. Tim predicts that this number will continue to grow and the value of Bitcoin will be determined by the square of that.
Tim, in his interview with Forbes, later shares his strong opinion that fiat currencies will disappear completely
Tim Draper on cryptocurrency replacing fiat currency:
“I think that in the future fiat will resemble carrying around change. For example, in the future, if we would buy coffee with fiat, the barista will look at us like we are crazy. I also think that soon we will be able to buy coffee and other things with Bitcoin, Ether, Bitcoin cash or any number of other cryptocurrencies all on our phone.”
“The way I look at getting started with cryptocurrency is to get involved a little at a time. I’d suggest purchasing a small amount of cryptocurrency on Coinbase or to put some crypto on a ledger. A ledger is a hardware wallet, so if you are worried about someone taking your cryptocurrency you can put it there. It’s amazing that all you need now is a USB port and you are able to hold all your money in your own hands.”
As the crypto world awaits the outcome of his latest prediction, they have an opportunity to read his book and think the way that he does. At least that is the idea behind the new publication. Rest assured, many will do so in the coming months. Also, rest assured, should his prediction not come true crypto trolls will roast him for it! Thus is the nature of the crypto community.