Tim Draper, an early bitcoin investor, has declared he is still optimistic about the value of the first cryptocurrency even with the downturn its price has taken in the last months. Draper believes that the asset is still valuable as an inflation hedge, and that the market we are navigating right now is “very similar” to the dot-com bubble burst, but with higher inflation.
Tim Draper still bullish on Bitcoin
Tim Draper, the venture capitalist famous for his early bitcoin investments, explained his position regarding the value of bitcoin in the current market situation. In an interview aired by CNBC, Draper explained that bitcoin’s importance in the downturn in the crypto and traditional markets has to do with its inflation-hedging characteristics.
Draper told CNBC:
I’m still a bull on Bitcoin because it’s a great hedge against inflation, and as speculators leave it will diverge from tech stocks. I do believe that tech stocks will keep going down as long as interest rates keep going up.
He extended his view of bitcoin as an inflation-hedging asset, stating that this trait of the currency can only be enjoyed over the long term, and noted that it also provides a refuge from bad governance. and too much regulation.
Bitcoin Advantages and Overregulation
Draper — who invested in bitcoin first via an auction of almost $30K in bitcoin organized by the U.S. Marshals Service back in 2014 — believes that bitcoin has a place in the future as an alternative finance system separated from the fiat world.
On this, Draper said:
I am free to move bitcoins around the world and trusted by hundreds of thousands of miners who watch over the blockchain. There will be a time when I can buy my food, clothes, and shelter in bitcoin, and there will be no need for fiat currency controlled by governments and banks.
The venture capitalist also believes that, even with all the problems that the bitcoin investments in El Salvador are causing, it has spurred a wave of innovation that is making companies in the sector move to El Salvador due to a crypto-friendly policy and regulations. He concluded:
The innovators all go there because our government over-regulates and therefore we lose innovation because we have too much regulation.
