Bitcoin May Be Worth an Infinite Amount of US Dollars: Venture Capitalist Tim Draper Explains Why
Tim Draper, an American venture capitalist, has strongly recommended exposure to Bitcoin, insisting its value will appreciate infinitely against the US dollar.The staunch Bitcoin enthusiast is optimistic that the pioneering cryptocurrency would become a sovereign insurance policy, particularly amid the US dollar index capitulation. In a recent tweet, he predicted that Bitcoin will continually gain against the American dollar, citing a growing reallocation to the digital asset.Uncertainties Unveil Bitcoins Admirable QualitiesDraper likened the Bitcoin against the US dollar situation to what happened during the 1861 Civil War. During the unrest, the Confederate States of America (CSA) issued a paper currency, which started off with a 1:1 peg with the US dollar.However, the Confederate dollar decayed in value, trading at over 10 million against 1 USD at the war's end. The venture capitalist suggested a similar incident would materialize with Bitcoin and the dollar as local and foreign investors lose credence in the powerhouse fiat currency.Meanwhile, Draper cited the US dollar index crash as proof of this assertion. The financial instrument, which tracks the performance of the US dollar against six major foreign fiat currencies, has recorded its worst-ever start to the year, with an 8% correction YTD.The index capsized amid escalating trade wars between the United States and several nations globally. Interestingly, the Bitcoin maximalist suggested that the metric may fall further if geopolitical tension persists.Nonetheless, Bitcoin has stood its ground despite these uncertainties, drawing conclusions about the assets quality as a safe haven. Draper established that BTC has continued flourishing, with its unique attributes turning heads.Gold Not in Bitcoins League: DraperWhile many would naturally turn to gold during market uncertainties, Draper presented Bitcoin as a better alternative. He noted that Bitcoin is in a different league from gold and cited drawdowns that holding the precious metal could confer.For context, the large-scale investor insisted that gold has transportation, storage, and utility constraints compared to Bitcoin. Notably, the assets digital nature and easy transactability are major lures in contrast to gold.Meanwhile, Draper highlighted that governmental bodies are slowly turning to Bitcoin through strategic reserve proposals, reestablishing the assets growing prominence. According to him, Bitcoin has shown its outstanding qualities in the face of hyperinflation and would not desist from hedging against the financial menace.It bears mentioning that Draper earlier predicted that Bitcoin would hit $250,000 under adoption by the United States and 30x to about $2.9 million per coin upon global traction.
Text source: The Crypto Basic
