The global spread of the coronavirus played a major role in the dramatic 2020 stock market crash. The bailout bill for saving the world’s economy is $7 trillion and rising fast. Bitcoin bull Tim Draper believes this confluence of factors may be the tipping point that allows innovations such as Bitcoin and smart contracts to flourish.
In an interview on April 6, the global venture capital investor said he was skeptical about the government’s infinite money printing bailout plan and said it would take years before that money “permeates” the global economy.
“They are gonna be printing all this money to try to get the economy back after they've basically tanked it,” he said. “They are going to flood it with a bunch of money, and that money is going to be worth less, and less, and less.”
Draper believes people will start turning to Bitcoin as it has a fixed supply, in stark contrast to fiat which is being printed in the billions by central banks:
“This is going to be a really interesting time where people say ‘well, why don’t I just use Bitcoin?’ I know there are only 21 million of them and we don’t have to worry about whether a government is diluting their currency by printing tons of it, we can instead just use a currency we all agree on and it’s all a part of the economy and it’s already frictionless and open and transparent and global.”
End of globalization? Nope
Although there is debate about whether coronavirus may end the trend towards globalization over the past 25 years, Draper believes digital financial innovations like Bitcoin, smart contracts and artificial intelligence will force governments to compete among themselves at the “virtual level” to bring better services at “lower cost” to attract talents.
This in return will empower people with more choices to move freely and live in a “loving” and “nicer” new global world. He added that:
“It doesn’t matter whether you are from the U.S, China or Russia or India or Europe or whatever, we are an open world and then the geographic borders are going to mean less and less.”