Legendary Billionaire Tech Investor Tim Draper Explains Why He Is So Bullish on Blockchain and Cryptocurrencies
On Wednesday, Tim Draper, the legendary billionaire tech investor and co-founder of VC firm DFJ, was interviewed by Adryenn Ashley (the founder and CEO of blockchain-based dating platform Loly) as part of the "Future of Money" online crypto summit. Here are some of the more interesting comments made by Tim during this interview.
How He Decides What New ICOs to Invest In?
"I looked at many... ICOs, and I realized the difference between a good one and a bad one is very clear. A good one is a movement, it's like passionate people saying 'this is the way we've got to do it, we gotta move forward, it's going to be exciting, we're going to change everybody, they're all going to think this way'. And so, the movements are like the equivalent of anti Vietnam War movement, or the Women's Movement, or the ecological movement."
"And then, I look for this one other thing, which is after the ICO, you're going to have a bunch of money, you're going to have coins, you're going to have coins, and they are going to float around... But if they actually have an after-market that matters, that's really important. So, is there some reason to buy the coin after the ICO? Is there some reason for some real consumer to go buy that coin and do something with it? That's this extra little leap that most entrepreneurs don't even think about. Yeah, you need the coin to be useful, you need somebody to be willing to buy it, and you need it to spread. And the reason you say 'spread' is that the value on the network, the net cashflow, is the number of nodes squared, and what that means to me is the more wallets, the more Bitcoin wallets there are, the more Bitcoin goes up in value. Now, it floats around, but it will go up in value in value relative to other currencies. And people say, 'but Bitcoin is so volatile', and I think 'no, it's not true.' One bitcoin is still one bitcoin; it's all these other currencies that are volatile against it as they slowly disappear."
Why Is He So Bullish on Cryptocurrencies?
"Right now, there's $86 trillion of fiat money out there... That's the currency of the world... And my projection is that market will probably double, and the reason it will double is money will move faster with cryptocurrency, and slowly but surely, cryptocurrency will overtake the fiat currency because it's just better currency, it's frictionless, it's decentralized, it's global."