Tim Draper, a venture capitalist while in an interview with Fox Business on February 18, stated that only criminals would use fiat currency in five years. Draper attributed this to the fact that bitcoin and its underlying technology, the blockchain, aid in traceability which discourages criminal activities.
Bitcoin’s Traceability to Discourage Criminal Activities
According to Tim Draper, criminals will be the only ones using cash because of bitcoin aids in traceability. The cryptocurrency enthusiast’s statement goes contrary to the popular belief that virtual assets are used to facilitate crime. In Draper’s opinion, everyone who used bitcoin to commit a crime was caught, and as such, the reverse will be the case.
It appears Draper’s belief is closely tied to that of a United States Drug Enforcement Administration (DEA) agent. Lilita Infante who spoke to Bloomberg in August said bitcoin is public and immutable; thus, it provides a valuable resource for agents to track transactions and patterns. That being the case, blockchain technology makes it easy for the DEA to identify the actors behind a crime.
Draper Believes Storing Funds in Bitcoin is Better Than Banks
At the time when bitcoin was trading around $8,000 in May 2018, Draper outlined that storing funds in bitcoin is the safest way. He outrightly stated that money kept in the bank is at risk because banks are being hacked all the time. Bitcoin, on the other hand, has never recorded a successful attack on its underlying technology, the blockchain, said the enthusiast.
Draper is reputably known for his investments in startups like Skype, Hotmail, and Tesla. Asides these, the venture capitalist has invested massively in bitcoin and is bullish about the price of the digital asset. Bitcoin may be trading at $3,984 as at press time, but Draper believes that by 2022, 1 bitcoin will be valued at $250,000.
Bitcoin’s Price Increment to be Triggered by Banks
The billionaire’s prediction is on the basis that the increase in bitcoin’s price will be brought about by the public. These are people who will finally see the need for a global decentralized currency that is also secure. Draper further revealed that when this happens, he will be moving all he has from banks because “there is no reason to hold on to shells when you’ve got gold.”
While commenting on JP Morgan’s plans to launch its cryptocurrency, Draper felt the idea is great. Nonetheless, he was quick to note that not all altcoins turned out well, but they still helped to put the spotlight on bitcoin. In his own words: “Not many bitcoin knockoffs have worked particularly well, but they all add to the interest in bitcoin.“