Tim Draper was an early investor in bitcoin and has stated that he remains optimistic about the future value of the first cryptocurrency, despite the recent downturn in its price. Draper believes the asset is still worth its value as an inflation hedge and that the market that we are currently navigating is “very similar to” the dot-com bubble burst but with higher inflation.
Tim Draper Still Bullish On Bitcoin
Tim Draper is a famous venture capitalist who made early investments in bitcoin. He has now explained his position on bitcoin’s value in today’s market. CNBC interviewed Draper to explain that bitcoin’s importance in the current market downturn, which crypto and traditional markets are currently experiencing, is due to its inflation hedge characteristics.
Draper shared CNBC
Bitcoin is still my favorite investment because it provides a great hedge against inflation and will continue to diverge from tech stocks as speculators abandon it. As long as interest rates rise, I believe tech stocks will continue to fall.
He continued to see bitcoin as an inflation hedge asset and stated that this characteristic of the currency cannot be appreciated but over the long-term. He also noted that it provides a safe haven from bad governance and excessive regulation.
Bitcoin Advantages and Overregulation
Draper was the first person to invest in bitcoin via an auction that raised almost $30K. The auction was organized by U.S. believes bitcoin will have a place in the future, as an alternative to the fiat world.
Draper stated:
I can freely move bitcoin all over the globe and have the support of hundreds of thousands miners who watch over the blockchain. There will come a time when I can use bitcoin to buy my food, clothing, shelter, and other necessities.
Venture capitalists also believe that, despite all the problems that the El Salvador bitcoin investments are causing it has spurred an innovation wave that is driving companies in this sector to El Salvador because of a crypto-friendly policy. He concluded that:
Our government is too rigid and we are losing innovation.
