2014-04-16 07:55 AM
Tim Draper “Bitcoin smartest tech investment”
Draper surprised the interviewer with his opinion that the most intriguing investment is Bitcoin. He believes that Bitcoin has the required potential to beat all other alternative cryptographic currencies.
Draper believes Bitcoin is capable of changing and even revolutionizing the current world of finance and business providing new opportunities.
It important to realize that Bitcoin and the technology behind it looks extremely promising. Draper believes the negative image of Bitcoin is far-fetched:
“The Internet itself had its own weird baggage around.”
The presences of pornography, cyber-attacks and possible fraud have not harmed the development of the global network. As the most issues have already arisen as part of the start up period people will get used to it and will not be able to live without it.
Draper is more than willing to put his money where his mouth is claiming that he not only owns bitcoins himself but has also invested in Bitcoin related businesses. The chosen companies are very different – from insurance providers to mediators between customers and merchants.
Despite the humble size of the Bitcoin market – about US$110 million – it can be compared with a successful business taking in account the overall amount of coins existing or going to be mined.
While speaking on volatility, Draper said:
“Eventually it will find its place.”
It is especially worth considering by people living in very unstable economies where the local fiat currency suffers from dramatic inflation, Bitcoin might be a reasonable alternative.
Draper believes that Bitcoin has already stabilized and price range between US$ 400 and US$ 600 can be considered as success. He remarks:
“It is going to bounce in a while.”
Touching the introduction of Auroracoin in Iceland, Draper expressed some doubts. From his point of view the currency has local potential, but is not a competitor for Bitcoin.
Tim Draper is a third generation venture capitalist, as his father and grandfather were also successful investors. Given his past record it might just be that DFJ Venture has found another winner with Bitcoin.