In the most audacious claim to greatness since John Lennon said that The Beatles were “Bigger Than Jesus”, Silicon Valley venture capitalist legend Tim Draper has claimed that Bitcoin is “Bigger Than the Internet.” Lennon was right – at least in terms of album sales – but is any part of Draper’s incredible claim on the money?
After plenty of first-quarter speculation that the world’s no.1 cryptocurrency was on the slide, Bitcoin has slowly but steadily been rallying for several weeks now. In fact, earlier this week (Tuesday April 24) it climbed to a 30-day high of $9,740, and is clearly closing in on the $10,000 mark. That was great news for Bitcoin investors and also for the Bitcoin company, whose market cap rose to a massive $436 billion. It’s still a long way short of Bitcoin’s peak of just short of $20,000, which it reached last November, but at this steady rate of increasing value, Bitcoin could yet finish 2018 at a similar high.
Who Is Tim Draper?
One person who has never doubted that Bitcoin would rebound from its early-2018 slump with a vengeance is Silicone Valley tech-entrepreneur par-excellence Tim Draper. 59-year old San Francisco native Draper has been involved in the venture capital business since the mid-1980s, when he formed his company Draper Fisher Jurvetson (DFJ) alongside partners John Fisher and Steve Jurvetson. In an era where corporate raiders thrived and Michael Douglas’s Gordon Gekko famously said “greed is good” in the 1987 Oliver Stone movie Wall Street, DFJ had a totally different approach to business.
Rather than purchase established but struggling businesses, then rip them apart and sell the pieces off in true corporate-raider fashion, DFJ were all about finding fledgling but promising businesses that were desperately in need of investment, and giving them that all-important helping hand. Over the years, DFJ gave early investment to such global brands as Jobs.com, Hotmail, Tesla and Skype.
In 2013, Draper took sole control of the company. Today, DFJ is among the top-six biggest venture capital firms in the world.
So What Does Tim Draper Think And Say About Bitcoin?
With such an impressive track record, it’s safe to say that Draper knows what he is talking about, so when he starts to wax-lyrical about how enormous he believes Bitcoin will be, investors need to focus 100%. Not only does Draper believe that Bitcoin will survive these early roller-coaster years, not only does Draper believe that Bitcoin is in fact here to stay, he actually believes it will be bigger than the internet, the industrial revolution and the renaissance.
On Saturday (April 21) Draper took center-stage at the Intelligence Squared U.S. debate presented in partnership with the Manhattan Institute’s Adam Smith Society in New York City. It was there that Draper gave a speech that included several rousing pro-Bitcoin statements:
On how big Bitcoin will become:
“This (Bitcoin) is bigger than the internet. It’s bigger than the Iron Age, the Renaissance. It’s bigger than the Industrial Revolution. This affects the entire world and it’s going to be affected in a faster and more prevalent way than you ever imagined.”
On how it will fare against traditional fiat currency in the future:
“In five years you are going to try to go buy coffee with fiat currency and they are going to laugh at you because you’re not using crypto. I believe that there will be a point at which you will no longer really want any of the fiat currency.”
To the naysayers that think Bitcoin and cryptocurrency is a passing fad:
“The complete discussion about whether Bitcoin is a bubble is ridiculous. Our last bubble was the internet. What happened to the Internet until today? You still use the internet. That was not a bubble, but an amazing change in our world.”
On the security of investing in Bitcoin:
“I feel much safer with my bitcoins than when the money is on the bank in Wells Fargo.”
Is Tim Draper A Bitcoin Investor?
Draper is himself a major investor in Bitcoin: In 2014, Draper had the opportunity to purchase almost 30,000 Bitcoins in a U.S. Marshals Service auction, for which he paid a reputed $19 million, and apparently hasn’t parted with any of them. His Bitcoin are now worth more than $265 million, but if his prediction is correct, that figure will be significantly greater within four years’ time.
Draper recently went on record predicting that by 2022, Bitcoins will be valued at $250,000 EACH. If that prediction proves correct, Draper’s Bitcoin investment will be worth a cool $7.5 billion.