Tim Draper, the famous billionaire venture capitalist from Silicon Valley’s very first investor family, the Draper Dynasty, said in his recent interview with InnMind that the coronavirus crisis presents several prospective opportunities for the venture capital industry and technological innovations such as Bitcoin and smart contracts.
Tim Draper’s commitment to Bitcoin and blockchain is infectious. He has been consistent with his opinion that Bitcoin is, in fact, the currency of tomorrow, and today’s generation should consider investing in it for comfortable retirement life. His unwavering support for the cryptocurrency comes from the belief that the asset was primarily built for a crisis like this, and the coronavirus outbreak could very well serve as the “tipping point.”
Government’s bailout plan not foolproof, Tim Draper
Talking about the coronavirus pandemic and resulting crash of the stock markets, Tim Draper believes that the impact would be quite severe as the countries such as the United States, China, and India are flushing in trillions of dollars to save the economy from sinking.
According to the founder of Draper University and Draper Fisher Jurvetson, the government’s plan to plow in infinite sums into the system, which will result in a tremendous amount of money printing may not work as expected. The bailout plan will take years before it starts to make a difference and permeate through the global economy.
Tim Draper is of the opinion that the government is basically trying to breathe life into a failed economy by printing excessive cash. What they don’t realize is that this money is going to be more and more irrelevant in the time to come, eventually setting the stage for broader Bitcoin adoption.
Given that Bitcoin has a fixed supply, contrary to fiat, which is currently being printed out in millions every second, Draper assumes that people will eventually realize that it is probably more beneficial to turn to Bitcoin instead. They will finally come to terms with a currency that’s not being printed in tons but still is an integral part of a transparent and unanimous economy, he said.
Time for technological innovations to witness breakthrough
Speaking about the much-debated topic about whether or not the coronavirus will result at the end of globalization with people constrained at home and resorting to local businesses instead of venturing out, Draper believes that it is going to be quite the opposite instead. He expects that the geographical boundaries will become more blurred with people switching to a digital mode of life.
Once the virus is contained, Tim Draper continued, cryptocurrency adoption will be imminent. Per him, innovations such as Bitcoin, blockchain and artificial intelligence will cause governments to go head to head against each other to produce virtual yet cost-effective products and services.
It will be a good time for the venture capital industry as well with new ideas and innovations, making their way into the market, Draper added.
Meanwhile, sharing a similar sentiment is another billionaire investor, Chamath Palihapitiya, who said during an interview that Bitcoin has the perfect opportunity to prove itself now. With global markets crashing and fiat money taking a severe beating in the hands of the coronavirus crisis, people are looking for options such as Bitcoin to emerge as a flight to safety, he said.