Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The American venture capital investor Tim Draper has forecasted that the price of bitcoin will increase in the future, attributing this to the cryptocurrency’s benefits over traditional fiat currency.
The billionaire asserted in 2020 that the COVID-19 pandemic would have a detrimental impact on the global economy, yet it would serve as a positive catalyst for BTC. The leading digital asset reached an unprecedented high of nearly $70,000 the following year, while a financial crisis and soaring inflation rates affected numerous regions worldwide.
Reasons BTC is Superior
Tim Draper, a prominent advocate for bitcoin, reaffirmed his endorsement of the asset in a recent interview with Fox Business.
He contends that it will “rise above fiat” due to its benefits compared to the dollar and other currencies. One limitation of national currencies is that they are governed by a bank or a government, whereas BTC’s network is safeguarded by “hundreds of thousands of nodes,” he stated:
“Having to have a bank and a government that decides on what currency is good is not as effective as having a bitcoin where you have a trusted third party which is hundreds of thousands of nodes out there checking to make sure that the transaction was done properly.”
Tim Draper, Source: CNBC
Related Posts
It is important to note that central banks can also influence the supply of fiat currency by printing large quantities.
ADVERTISEMENT
The Federal Reserve, for instance, printed trillions of dollars in 2020 and 2021 to address the repercussions of the coronavirus pandemic. While this action was somewhat beneficial initially, it later contributed to the record inflation rate in the USA.
In contrast, bitcoin has a capped maximum supply of 21 million coins that will ever exist. Many advocates believe this provides the asset with an advantage against inflation. Furthermore, its decentralized nature (the fact that no banking institution or government can control it) may render it more appealing to individuals compared to fiat, whose supply is continually modified by centralized entities.
“So I think it’s just better, safer technology, and eventually, the rest of the world will come onboard,” Draper concluded.
Inaccuracy with Previous Predictions
The American billionaire has not consistently been accurate in his forecasts regarding bitcoin’s future value. He predicted in 2021 that BTC would reach $250,000 by the end of the previous year, while in 2020, he indicated that the asset would achieve that milestone at the start of 2023. Despite the considerable price growth over the past three years, bitcoin did not approach the $250K target.
Draper mentioned in a recent tweet that “we have to wait a little longer (maybe 2 years)” before BTC ascends to that level.
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
