Billionaire investor Tim Draper revealed he believes that Facebook’s cryptocurrency libra will serve as a bridge for greater bitcoin adoption.
Building to Bitcoin
Draper appeared on CNBC’s “Squawk Alley” program to discuss the impact of Facebook on cryptocurrency. While others have positioned libra as a potential bitcoin killer, the American investor thinks Facebook’s digital currency will serve as an entry point into crypto for mainstream audiences.
He doubled-down on his opinion that bitcoin is the primary driver for innovation, despite the rise of altcoins and large platform tokens like libra.
“I think all these other cryptos are bridges to where we have a Bitcoin environment.”
Despite the global attention generated by libra, bitcoin has consolidated market share throughout 2019. According to a recent report published by CoinGecko, bitcoin was the top performing high market cap cryptocurrency in Q2 2019 and BTC market dominance climbed to a relative high of 65%.
In addition, the top five cryptos now control 86% of the overall market capitalization, giving the appearance that investors are concentrating on established projects at the top.
Draper took issue with the way U.S. regulators have treated both bitcoin and libra. He explained that heavy-handed interventions and too much pressure would stifle innovation for digital currencies and blockchain. In the case of Facebook, lawmakers are falling over themselves to criticize libra well ahead of its launch.
He told the Squawk Alley crew,
“We’re putting regulation before the innovation — Facebook’s just announced Libra; they haven’t even been able to ship it yet, and the regulators are all over them.”
Draper has also been critical of the Government of India for its purported connection with a bill that would make using cryptocurrencies an offense punishable with up to ten years in prison. The American investor created a firestorm on Twitter after calling the Modi government “pathetic and corrupt.”
People behaving badly! India's government banned Bitcoin, a currency providing great hope for prosperity in a country that desperately needs it. Shame on India leadership. Pathetic and corrupt. #India #bitcoin— Tim Draper (@TimDraper) July 17, 2019
While India has yet to institute a ban on crypto, an unofficial drafted bill surfaced on July 15 that would seek to prohibit the use of bitcoin and other digital currencies.