Ask venture capitalist Tim Draper about bitcoin, and you'll find that the early supporter of Tesla Inc. (TSLA), Skype and Hotmail is perhaps the most vocal proponent around. In fact, Draper has gone on record stating that he believes bitcoin will be "bigger than the internet," according to a recent report by CNBC. The investor argues that the leading cryptocurrency by market cap will be bigger than all of the projects he's invested in combined.
Draper spoke at a recent Intelligence Squared U.S. debate, which was presented last weekend in partnership with the Manhattan Institute's Adam Smith Society. There, he suggested that 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," he said.
Draper is the founder of venture capital firms Draper Associates and DFJ. He was a strong proponent of a bullish outlook for BTC, predicting that it will hit $250,000 within four years.
Draper Predicts Dominance of Cryptocurrency
Draper suggested that "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." He continued by stating his belief that "there will be a point at which you will no longer really want any of the fiat currency."
The venture capitalist bought about 30,000 bitcoins in a 2014 U.S. Marshals Service auction. He explained to CNBC that as of December he was still holding that collection of coins. If that's the case, his holdings are worth close to $200 million.
Draper squared off in the debate against Financial Times Managing Editor Gillian Tett, who pointed to bitcoin's various nefarious uses, its volatility and other risks to investors. Draper shrugged off the assertions, saying that he felt "more secure in my bitcoin than I am in the money that's sitting there in Wells Fargo." The outspoken investor also suggested that bitcoin was likely to win the "long-term crypto battle" against a field of about 1,500 competitors as a result of its market share.
Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.