Legendary billionaire venture capitalist, Tim Draper has predicted that in the next five years, fiat currencies will only be used by those involved in illicit activities.
According to the well-known bitcoin (BTC) bull, cryptocurrencies will achieve mainstream adoption within the next few years – while fiat money will mostly be used by criminals. Draper’s comments came during an interview (on February 18th) with Fox Business in which he told the financial news outlet that cryptocurrency transactions can be tracked easily through block explorers.
Draper, who acquired 30,000 bitcoins during a US Marshals Service auction (after they had been seized from Silk Road’s black markets), remarked:
The criminals will still want to operate with cash, because they catch everybody who is trying to use Bitcoin.
Last year in August, an agent working for the US Drug Enforcement Administration (DEA) had said that it was easier for her department to monitor cryptocurrency transactions – when compared to illegal deals conducted using fiat money. The agent had explained that block explorers provide advanced tools which allow government agencies to accurately track crypto transactions on the blockchain.
During his latest interview, Draper also mentioned that he thinks the fiat money in his bank account is not as secure as his cryptocurrency holdings. According to the business tycoon:
My bank is constantly under a hack attack.
“A Lot” Of Money Invested In Digital Assets
However, Draper pointed out that the Bitcoin blockchain is highly secure – as nobody has been able to hack it. Going on to compare liquidating bitcoin with exchanging gold for shells, the entrepreneur argued that cryptocurrencies would play a key role in the future economy. Although Draper did not disclose exactly how much of his investments are allocated to digital assets, he said “a lot” of his portfolio was focused on cryptocurrencies.
Notably, Draper is not the only prominent investor who has expressed confidence in crypto-based investments. Jeremy Gardner, the co-founder of Augur, a decentralized prediction markets platform, has also said that the fiat-based financial system can more easily be exploited (compared to crypto) by those involved in illegal activities.
Draper Sticks To His $250,000 BTC Price Prediction
In November 2018, Tim Draper reaffirmed his stance that he believes the bitcoin price will skyrocket to $250,000 by 2022. Draper, who is the founder venture capital firm Draper Associates, stated during a panel discussion on November 6:
Believe it, it’s going to happen – they’re going to think you’re crazy but believe it, it’s happening, it’s going to be awesome!
Draper’s remarks were in reference to the price of bitcoin reaching a quarter of a million dollars in the next 3 years. After recording all-time highs of nearly $20,000 on December 17th, 2017, bitcoin’s value has dropped considerably to currently below $4,000 – according to CryptoCompare data.