Home / Markets News & Opinions / Tim Draper: Only Cryptocurrencies Will Be Used For Payments in 5 Years

Tim Draper: Only Cryptocurrencies Will Be Used For Payments in 5 Years

Last Updated March 4, 2021 5:05 PM
Habiba Tahir
Last Updated March 4, 2021 5:05 PM

To some people, cryptocurrencies are the stories they go through while sipping a hot cup of coffee early in the morning. But to others, it is an ecosystem that is developing slowly and is bound to engulf the entire world. One such individual is venture capital investor, founder of Draper Associates and Stanford graduate Tim Draper.

Draper is not your average bull – he can break the internet by simply stating that, “In five years you’re going to walk in and try to pay fiat [a government-backed currency like the U.S. dollar] for a Starbucks coffee, and the barista is going to laugh at you, because they’re going to say, ‘What is this? Are you counting out pennies? Give me shells?”

To show his unwavering support, Draper wore a tie with printed bitcoins while he continued his interview on CNBC’s segment ‘Fast Money’  on Tuesday. He talked about how digital currency “is not subject to the whims of some political force or another”, and how the world “international” will be substituted by “global”.

A Movement Bigger than the Internet Age

Considering that people think cryptocurrencies are nothing more than a way to make quick cash, Draper talked about the positive yet lesser-known features of the underlying blockchain technology.

“All the various governments are going to be virtual and competing for us, so that they will have to provide good service at a low cost. And that’s something governments haven’t had to do before,” said Draper.

He also mentioned that bitcoin is the only stable cryptocurrency. He’d rather discard his U.S. dollars for the virtual currency, “They’re not going to use fiat. Five years from now, none us of will be. Because all of this engineering effort, all that excitement, this focus is really on bitcoin and all of the cryptos around it. And I think that’s what we’re all going to be using and paying with.”

Draper, who bought 30,000 BTC from the U.S. Marshals Service auction in 2014, has a net worth  of around $350 million-$500 million. He is also known for correctly predicting the price of bitcoin in 2014, where he said that BTC would cross $10,000 in three years. The price  not only hit the number but surpassed it slightly on Nov. 2017. When asked whether he will be giving another one in the future, Draper stated that he will deliver a price prediction on Apr. 12, 2018 to the entire world.

Featured image from Flickr.