[2018-03-11] Tim Draper: Only Crypto Will Be Used For Payments in 5 Years

[FollowSynergy]

To some people, cryptocurrencies are the stories they go through while sipping a hot cup of coffee early in the morning. But to others, it is an ecosystem that is developing slowly and is bound to engulf the entire world. One such individual is venture capital investor, founder of Draper Associates and Stanford graduate Tim Draper.

Draper is not your average bull – he can break the internet by simply stating that, “In five years you’re going to walk in and try to pay fiat [a government-backed currency like the U.S. dollar] for a Starbucks coffee, and the barista is going to laugh at you, because they’re going to say, ‘What is this? Are you counting out pennies? Give me shells?”

To show his unwavering support, Draper wore a tie with printed bitcoins while he continued his interview on CNBC’s segment ‘Fast Money’ on Tuesday. He talked about how digital currency “is not subject to the whims of some political force or another”, and how the world “international” will be substituted by “global”.

A Movement Bigger than the Internet Age

Considering that people think cryptocurrencies are nothing more than a way to make quick cash, Draper talked about the positive yet lesser-known features of the underlying blockchain technology.

“All the various governments are going to be virtual and competing for us, so that they will have to provide good service at a low cost. And that’s something governments haven’t had to do before,” said Draper.

He also mentioned that bitcoin is the only stable cryptocurrency. He’d rather discard his U.S. dollars for the virtual currency, “They’re not going to use fiat. Five years from now, none us of will be. Because all of this engineering effort, all that excitement, this focus is really on bitcoin and all of the cryptos around it. And I think that’s what we’re all going to be using and paying with.”

Draper, who bought 30,000 BTC from the U.S. Marshals Service auction in 2014, has a net worth of around $350 million-$500 million. He is also known for correctly predicting the price of bitcoin in 2014, where he said that BTC would cross $10,000 in three years. The price not only hit the number but surpassed it slightly on Nov. 2017. When asked whether he will be giving another one in the future, Draper stated that he will deliver a price prediction on Apr. 12, 2018 to the entire world.

https://www.ccn.com/tim-draper-cryptocurrencies-will-used-payments-5-years/

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[jjacob]

This is a bit of an extreme view. As long as there are governments around, which have powerful militaries, fiat currencies are here to stay. You may argue that the concept of a nation-state is a new one and that three hundred years ago there were no nations - only kingdoms whose boundaries kept changing. But you would need a revolution to change that.

[Carlton Banks]

This is a bit of an extreme view. As long as there are governments around, which have powerful militaries, fiat currencies are here to stay. You may argue that the concept of a nation-state is a new one and that three hundred years ago there were no nations - only kingdoms whose boundaries kept changing. But you would need a revolution to change that.

You appear not to have noticed, but the "revolution" you speak of is already under way.

Governments have already more or less conceded that cryptocurrencies cannot be stopped, and they are also beginning to compete with each other to liberalise Bitcoin's treatment under their laws (to the point of essentially codifying the fact that they no hope of controlling them, e.g. the German government's recent abandonment of taxing Bitcoin as a captial gain)


Meanwhile, government debt and fiat purchasing power are eroding almost as fast as Bitcoin's purchasing power rises. Draper might be over-optimistic on the timeframe, but he's correctly identified the overall direction of change. It could be look actual democracy, where regular people and what they want actually matter, because governments would need our cooperation to get what they want if enough people used cryptocurrency.

Why deride that as "extreme"? Did you mean "an extremely good idea"?

[Lucius]

This is actually the old news,I read about it last year(about crypto as only payment in 5 years),and I do not think this will happen in that time period,but I would certainly like that I'm not right.I do not know is he thinking that BTC will become main world currency or that governments will make their own digital coins,somehow I do not see China and Russia in his vision.

Draper is also invest in more then 40 coins how far it is known till today,so his statement about BTC as only stable cryptocurrency it is not something to be taken seriously,he is at the end only one more investor whose main goal is to make profit.

Only new thing in this article is his announcement regarding price prediction,interesting that he is published the date for that.At this point I do not see any significance of that date,but it is better to say something on April 12, then on April 1

[superjeyy]

This is actually the old news,I read about it last year(about crypto as only payment in 5 years),and I do not think this will happen in that time period,but I would certainly like that I'm not right.I do not know is he thinking that BTC will become main world currency or that governments will make their own digital coins,somehow I do not see China and Russia in his vision.

Draper is also invest in more then 40 coins how far it is known till today,so his statement about BTC as only stable cryptocurrency it is not something to be taken seriously,he is at the end only one more investor whose main goal is to make profit.

Only new thing in this article is his announcement regarding price prediction,interesting that he is published the date for that.At this point I do not see any significance of that date,but it is better to say something on April 12, then on April 1

I agree with Lucius. Old news or not, 5 years is still too soon and I guess too early to state that by that time Bitcoin would be used by the mass. With the government backlashing on Bitcoin adoption and considering the lack in technological advancements in parts of the world, Bitcoin mass use may still take a lot of time and consideration before fully employed in everyday use. However, things change so rapidly that I may be mistaken after awhile since we are in a pace where things are evolving rapidly. Only the present situation can give us assurance of what the state of Bitcoin would be.

[Leyss]

Probably, from the position of a man sipping a cup of coffee at his office in a large city and having 50,000 bitcoins, everything about the crypto currency seems pink. This is if Tim Draper in five years will come to our market and go to a grandmother who will trade vegetables grown in his garden and offer to buy something from her bitcoin, they will surely laugh at him, and maybe they will not understand what figures they are offered in return for ordinary money. Fantasies are fantasies, but you can not break away from the real world. In five years, the Crypto currency will only take the next step to full implementation in our life, and such steps will have to be done very much and no one knows how to end this path. Not everything is as simple as it seems from your office.

[Gotottack]

To some people, cryptocurrencies are the stories they go through while sipping a hot cup of coffee early in the morning. But to others, it is an ecosystem that is developing slowly and is bound to engulf the entire world. One such individual is venture capital investor, founder of Draper Associates and Stanford graduate Tim Draper.

Draper is not your average bull – he can break the internet by simply stating that, “In five years you’re going to walk in and try to pay fiat [a government-backed currency like the U.S. dollar] for a Starbucks coffee, and the barista is going to laugh at you, because they’re going to say, ‘What is this? Are you counting out pennies? Give me shells?”

To show his unwavering support, Draper wore a tie with printed bitcoins while he continued his interview on CNBC’s segment ‘Fast Money’ on Tuesday. He talked about how digital currency “is not subject to the whims of some political force or another”, and how the world “international” will be substituted by “global”.

A Movement Bigger than the Internet Age

Considering that people think cryptocurrencies are nothing more than a way to make quick cash, Draper talked about the positive yet lesser-known features of the underlying blockchain technology.

“All the various governments are going to be virtual and competing for us, so that they will have to provide good service at a low cost. And that’s something governments haven’t had to do before,” said Draper.

He also mentioned that bitcoin is the only stable cryptocurrency. He’d rather discard his U.S. dollars for the virtual currency, “They’re not going to use fiat. Five years from now, none us of will be. Because all of this engineering effort, all that excitement, this focus is really on bitcoin and all of the cryptos around it. And I think that’s what we’re all going to be using and paying with.”

Draper, who bought 30,000 BTC from the U.S. Marshals Service auction in 2014, has a net worth of around $350 million-$500 million. He is also known for correctly predicting the price of bitcoin in 2014, where he said that BTC would cross $10,000 in three years. The price not only hit the number but surpassed it slightly on Nov. 2017. When asked whether he will be giving another one in the future, Draper stated that he will deliver a price prediction on Apr. 12, 2018 to the entire world.

https://www.ccn.com/tim-draper-cryptocurrencies-will-used-payments-5-years/

Well, I am so glad to hear someone so powerful to be very vocal about his support to Bitcoin. Nonetheless, don't you think he is merely trying to influence the people at large because of his huge investments? While I am an avid supporter of Bitcoin, I do not think it is anytime within five years that it will be all that we need in replacement of cash. That estimate is such a short time, coming from where we are at today. Although I understand why he is being vocal now because surely he would want people to buy in, given the low value of Bitcoin as of writing. He is just being defensive of his investments, and the only way he knows how to protect it is through convincing people that it will be worth investing into. Come to think of it, why would he even think of only being vocal today? It is because he is desperate to save the price from falling once more. He is frightened to lose his whole fortune to it.

[1Referee]

I just hate how +90% our financial transactions and wealth is being processed and maintained by corporations, where for every action permission is required from a central party. Why does anyone need to ask for permission to move value from one place to another? It's mind boggling how the majority of the people still don't acknowledge how much of a problem this is. I care so little about fiat, that I haven't even cashed out one single Satoshi in the last 2 years, and will definitely not do so in the forthcoming years. I think I'm almost confident enough to say that I will probably never sell my coins for actual fiat. Seriously, why should anyone sell the future (Bitcoin) for something (fiat) that goes back in time, and only loses value? Makes zero sense. Just wait till the time is there, and you can spend your coins on actual goods in each and every store. Makes more sense.

[richardsNY]

Come to think of it, why would he even think of only being vocal today? It is because he is desperate to save the price from falling once more. He is frightened to lose his whole fortune to it.

He has been speaking out for years now.... You purely base your opinion on this article, which aside from a few added details, isn't all that new. If you took the effort to read this article properly, and do a bit more research, you would have found out that the 30,000 BTC he bought back in 2014, were valued ~$600 a pop. Even at current levels, that's an insane return on his investment, and thus it should be clear that he isn't worried about his initial investment. I don't even understand why you would think so, because it's not logical at all, especially because of the fact that in 2015, the value of Bitcoin tanked below $200, and he didn't even complain about anything....

[zakalwe]

I just hate how +90% our financial transactions and wealth is being processed and maintained by corporations, where for every action permission is required from a central party. Why does anyone need to ask for permission to move value from one place to another? It's mind boggling how the majority of the people still don't acknowledge how much of a problem this is. I care so little about fiat, that I haven't even cashed out one single Satoshi in the last 2 years, and will definitely not do so in the forthcoming years. I think I'm almost confident enough to say that I will probably never sell my coins for actual fiat. Seriously, why should anyone sell the future (Bitcoin) for something (fiat) that goes back in time, and only loses value? Makes zero sense. Just wait till the time is there, and you can spend your coins on actual goods in each and every store. Makes more sense.

I like your spirit! But please explain how do you pay for rent, food, hairdresser and so on. I doubt that they all accept bitcoins

[gogrowglow]

Re: [2018-03-11] Tim Draper: Only Crypto Will Be Used For Payments in 5 Years

This prediction is not impossible with this high technology, things are moving so fast, things changing in a blink of and eye, in 5 years this might happened.   

[CryptoBry]

This is a bit of an extreme view. As long as there are governments around, which have powerful militaries, fiat currencies are here to stay. You may argue that the concept of a nation-state is a new one and that three hundred years ago there were no nations - only kingdoms whose boundaries kept changing. But you would need a revolution to change that.

I am quite or would like to be so enthusiastic about cryptocurrency specifically on Bitcoin all because I also have some Bitcoin and as an investor I always wish for to go as high as possible even a million next month. However, we are still living in a world where other forces can stifle our wish into a controlled state and where these forces are always affecting the current market. Unfortunately, that needed revolution coming from the masses with the aim of controlling the way government is controlling us may not be happening soon.

[chocomartin]

I just hate how +90% our financial transactions and wealth is being processed and maintained by corporations, where for every action permission is required from a central party. Why does anyone need to ask for permission to move value from one place to another? It's mind boggling how the majority of the people still don't acknowledge how much of a problem this is. I care so little about fiat, that I haven't even cashed out one single Satoshi in the last 2 years, and will definitely not do so in the forthcoming years. I think I'm almost confident enough to say that I will probably never sell my coins for actual fiat. Seriously, why should anyone sell the future (Bitcoin) for something (fiat) that goes back in time, and only loses value? Makes zero sense. Just wait till the time is there, and you can spend your coins on actual goods in each and every store. Makes more sense.

I like your spirit! But please explain how do you pay for rent, food, hairdresser and so on. I doubt that they all accept bitcoins

Agreed, its a naive way to look at how the world works. Majority of people do not acknowledge it since they know that governments and big corporations are part of the society we’re living in now. Although I also believe Satoshi’s purpose in creating BTC was to “stick it to the man” it is naive to completely disregard fiat in this way.