Two years ago, venture capital and Bitcoin investor Tim Draper publicly announced that Bitcoin will reach $ 250,000 by 2022. However, as Bitcoin continues to attract investor interest, Draper told Cointelegraph in an interview that a $ 250,000 price forecast would be conservative. : “I think it will definitely hit her. But many people think the $ 250,000 was a bit conservative. ”
Draper also discussed the impact of the COVID-19 pandemic on the blockchain space, noting that the token will play an important role in solving problems related to global shipping and real estate. In addition, Draper shared his thoughts on the decentralized economy, or DeFi, and said he wants the DeFi venture capital business to move forward.
Tim Draper: Several things happened after the pandemic. Some say it’s time to introduce new technology. People get stuck in place and say, “Yeah, why not try to see what virtual reality looks like for telemedicine or distance learning?” Some of the things that we have maintained over time have attracted a lot of attention during the pandemic because people were unable to leave their homes.
The second thing that happened was that when the US government reached $ 13 trillion, it immediately devastated the dollar by 20 or 30%. It was a real shock to the system. Then people said: “Well, wait, where do I put the money? Should I put it in gold or bitcoin, where will it be a great store of value? “Many have said they want to convert their money to bitcoin.
Another thing is that millions of people will die from this epidemic. But 135 million people will starve because of the government’s response to the epidemic. Public locks close various supply chains around the world. As a result, people are starving.
But when a crisis hits, it’s a great opportunity to do something extraordinary. For example, during the economic crisis, Satoshi Nakamoto created Bitcoin. And I believe that as we can introduce more restrictions and more accounting systems around the blockchain, we can use Bitcoin one by one in dollars.
CT: The world is in crisis right now. What technological breakthrough will help humanity to be stronger at the other extreme?
ETC: The encoding process will continue. We see this in real estate, international transport and everything related to the movement of securities between parties. These items can now be transported online, which is very beneficial for industries such as real estate and international shipping. When it comes to real estate, you can buy part of my home, or tag my property and own part of it without buying the whole thing.
Coding and delivery is also a great way for people to own containers to keep track of the entire IoT. I think we will see some outstanding breakthroughs in the shipping business with all kinds of logistics use cases.
CT: Another thing we’re seeing is the emergence of DeFi. Do you think DeFi is just a bubble or will it really lead to adoption?
ETC: I think DeFi should have appeared. People will sit on Bitcoin or their other cryptocurrency and watch how they value rather than spend money. But you want to constantly spend money.
Finally, I need deFi venture capital since I only raise money with bitcoins, invest in bitcoins only, and entrepreneurs pay their employees and suppliers everything in bitcoins. Then all accounts in this system must be on the blockchain. My relationship with an entrepreneur and my relationship with investors can be based on a smart contract, so if there is a big winner, it could all be spread across many different Bitcoin wallets. I think this will happen over time, but at the moment no accounts have been created. We are seeing early use cases for DeFi, but ultimately all calculations, taxes and everything else will be done with Bitcoin.
All of this DeFi will be the bridge to “ReFi”, where retail is located, and we use it as the most important currency for all of our purchases. It will only be part of the global economy. I think this will include Bitcoin as well as four or five other cryptocurrencies.
Finally, I think fiat currencies will gradually disappear. And I think governments that say, “Oh, I’m going to create a central cryptocurrency pegged to the country’s currency,” well, that’s half the goal. Half of the goal is to keep your currency from being tied to any political force. You can’t inflate debts and work like Argentina was 100 thousand.