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.
Tim Draper, the founder of venture firm Draper Associates, has stated that Bitcoin could emerge as the leading form of currency, despite companies expressing doubts about its suitability for everyday transactions.
According to the investor, businesses are cautious about adopting cryptocurrencies for payments due to their significant volatility. The value of BTC can fluctuate dramatically during daily transactions, which poses a risk for sellers who may not cover their costs and for buyers who could end up overpaying for goods.
Nevertheless, Draper believes that a decline in trust towards fiat currencies may encourage both businesses and consumers to adopt Bitcoin. He suggests that the US dollar is gradually losing its purchasing power, which could prompt companies to reevaluate their payment methods.
Related Posts
Initially, retailers might begin accepting Bitcoin as an additional payment option, and subsequently, some companies could entirely abandon fiat currencies, the investor speculated.
“People will grow tired of watching the dollar shrink to 90 cents, then to 80, then to 70, and ultimately plummet to zero. There will come a time when people will ask: why aren’t we using Bitcoins? If I were a retailer, the first thing I would do is put up a sign: ‘We accept Bitcoin.’ Then, after a while, I would announce that we only accept Bitcoin,” Draper remarked.
When discussing gold, the billionaire referred to it as an outdated investment vehicle. He noted that the precious metal is impractical for everyday payments.
“I don’t need gold because gold is a step back in time. How are you going to pay with gold? Cut a piece off a bar and say: ‘I’d like a cappuccino, please?’” Draper joked.
Previously, the investor also predicted that this summer, the price of Bitcoin could reach $250,000 amid a more favorable stance from Donald Trump’s administration towards cryptocurrencies.
