“Bitcoin could be bigger than the internet” Claims VC Investor Tim Draper

Avi Rosten
  • In a debate titled “Bitcoin Is More Than a Bubble and Here to Stay” Draper reaffirmed his bullish position on bitcoin
  • Draper insisted that he was more comfortable in his 30,000 Bitcoins than his “money in Wells Fargo,”
  • Financial Times Managing Editor Gillian Tett argued against the motion - underscoring Bitcoin’s volatility and criminal uses

Billionaire venture capitalist Tim Draper has recently doubled down on his commitment to cryptocurrency - claiming that Bitcoin could be bigger than the internet itself.

At an April 21st debate hosted by Intelligence Squared US and the Manhattan Institute's Adam Smith Society in New York, the founder and managing director of venture capital firm DFJargued for the motion that “Bitcoin Is More Than a Bubble and Here to Stay” - claiming that the currency represents a financial revolution. 

When asked how Bitcoin compared with his early investments in Tesla, Skype and Hotmail - CNBC’s report on the debate relates how Draper not only argued that it was “bigger than all of them combined,” but that:

“It's bigger than the Iron Age, the Renaissance. It's bigger than the Industrial Revolution. This affects the entire world and it's going to be affected in a faster and more prevalent way than you ever imagined,"

Tim Draper

Adding:

“In five years you are going to try to go buy coffee with fiat currency and they are going to laugh at you because you're not using crypto.”

Tim Draper

While Financial Times Managing Editor Gillian Tett argued against the motion - underscoring Bitcoin’s volatility and criminal uses, Draper insisted that he was more comfortable in his 30,000 Bitcoins than his “money in Wells Fargo,” and that Bitcoin has an "enormous" lead over the thousands of other coins due to its huge market share.

Arguing for the motion alongside Draper was Patrick Byrne - CEO and co-founder of the internet retail company Overstock.com - who echoed Draper’s confidence in the cryptocurrency’s security - pointing out that banks are equally susceptible to hacks. 

Bullish Environment 

Draper’s comments at the debate are the latest in a series of optimistic forecasts for the cryptocurrency with a number of prominent figures expecting soaring prices.

Recent comments such as Pantera Capital CEO Dan Morehead’s advice to buy BTC and Wall Street analyst Tom Lee’s bitcoin price target for March 2020 of $91,000 per coin have contributed to the Bullish atmosphere, while Draper himself expects the price to hit $250,000 by 2022

BTC Now Below $8300, but Tom Lee Says ‘2020 Should Be Great for Bitcoin’

Siamak Masnavi

On Thursday (January 23), Thomas Lee, Co-Founder, Managing Partner, and the Head of Research at independent research boutique Fundstrat Global Advisors, while appearing as a guest on CNBC's post-market show "Fast Money", predicted that "2020 Should Be Great for Bitcoin" and explained why.

According to data from CryptoCompare, at press time (around 10:20 UTC on January 24), Bitcoin is trading at $8,273:

BTC-USD 24 Hour Chart on 24 Jan 2020.png

This is the first time that Bitcoin has traded below the $8,300 level since January 14, as you can see in the two-week BTC-USD price chart shown below:

BTC-USD 2 Week Chart on 24 Jan 2020.png

Since Bitcoin reached $9,151 at 01:00 (UTC) last Sunday (January 19), the BTC price has been steadily falling, perhaps in anticipation of the "traditional" slowdown in Bitcoin trading around the time of the Chinese New Year (which, this year, starts on 25 January 2020 and ends on 11 February 2021). This expected drop in Bitcoin trading volumes was something that Arthur Hayes, Co-Founder and CEO of crypto derivatives exchange BitMEX, predicted in a tweet he sent out yesterday:

However, Lee, does not seem concerned about the currently falling prices of Bitcoin and altcoins in the crypto market.

Lee, who was appearing on Fast Money to give his views on the stock, bond, and crypto markets, was asked by the shows's host, CNBC news anchor Brian Sullivan, if he was still bullish on Bitcoin.

Lee replied:

"Yeah, 2020 should be great for Bitcoin because you got number one the halvening happening -- the block reward for miners getting cut in half -- that's a good supply demand change. I think last year the White House killed the Bitcoin rally with their opposition, but with the presidential election cycle underway, it's not gonna be in the headlines, and that's bullish for Bitcoin. And then with geopolitical tensions in the Middle East, I think that's good for crypto... We're getting a lot more interest in it from our clients."

It is worth remembering that two weeks ago Lee tweeted about a report he had published on January 9 about the outlook for crypto in 2020. According to this report, there are three positive convergences/catalysts for Bitcoin in 2020:

  • Bitcoin halving/halvening (which is expected to take place around 12 May 2020).
  • Geopolitical tensions in the Middle East.
  • 2020 U.S. Presidential Election

Lee said at the time that the bottom line is that "financial markets tend to discount 1-3 months, and maybe 6 months (max)" and therefore the "highest probability is halvening not priced in."