Tim Draper tries to “deFi” the venture capital business with Bitcoin


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Two years ago, venture capitalist and well-known Bitcoin investor Tim Draper publicly stated that Bitcoin would hit $ 250,000 by 2022. However, with Bitcoin continuing to pique investor interest, Draper Cointelegraph revealed in an interview that a price prediction of $ 250,000 may have been conservative: “I think it will most certainly hit it. But many people think that $ 250,000 was a bit conservative. ”

Draper also discussed the impact of the COVID-19 pandemic on the blockchain space, noting that tokenization will play an important role in solving problems related to global shipping and real estate. In addition, Draper shared his thoughts on decentralized finance (DeFi) and said he wanted DeFi’s venture capital business to become “deFi”.

The full interview can be viewed on Cointelegraph’s YouTube channel.

Cointelegraph: What do you think of how the COVID-19 pandemic is affecting the blockchain space?

Tim Draper: A few things have happened since the pandemic. Some people say it cut the time for us to adopt new technology. People get stuck and say, “Yeah, why not try to see what VR is like for distance medicine or distance education?” Some of the things that we have supported over time attracted a lot of attention during the pandemic because people were unable to leave their homes.

The other thing that happened was that when the US government was printing $ 13 trillion, it immediately diluted the dollar by 20 or 30%. That was a real shock to the system. People then said, “Well, wait, where do I put my money? Do I put it in gold or do I put it in Bitcoin where it is a great store of value? “A lot of people have said they want to convert their money into bitcoin.

Another thing is that millions of people will die from this pandemic. But 135 million people will die of starvation as a result of the government’s response to the pandemic. Government lockdowns have closed various supply chains around the world. As a result, people go hungry.

But when there is a crisis there is a great opportunity to do something extraordinary. For example, when there was a financial crisis, Satoshi Nakamoto came across Bitcoin. And I think that as we are able to put more restrictions and more accounting systems on the blockchain, we will be able to use Bitcoin interchangeably with dollars.

CT: Right now the world is in the middle of a crisis. What technological breakthrough will help make humanity stand out on the other end?

TD: Tokenization continues. We see it in real estate, worldwide shipping, and anything where valuables need to be moved between parties. Now these articles can be broadcast over the internet, which is very useful for industries such as real estate and worldwide shipping. In the case of real estate, you could buy a piece of my house, or you could market my real estate and own a piece of that property without having to buy the whole thing.

Tokenization and shipping are also a great way for users to own containers to keep track of the entire iot. I think we are going to see some extraordinary breakthroughs in shipping and in all types of logistic use cases too.

CT: Another thing we’re seeing is the rise of DeFi. Do you think DeFi is just a bubble or will this actually drive adoption?

TD: I think DeFi had to happen. People have sat on their bitcoin or their other cryptocurrencies and just watched them grow in value instead of using that money. But you want your money to be used all the time.

Ultimately, I want the “deFi” venture capital business, in which I raise a fund only in Bitcoin, invest it only in Bitcoin and the entrepreneurs pay their employees and suppliers all in Bitcoin. Then the entire billing via this system should be in the blockchain. My relationship with the entrepreneur and my relationship with my investors can all have a smart contract. So if there is a big winner, it can all be split across many different Bitcoin wallets. I think this will happen at some point, but at the moment the bookkeeping is not set up yet. We’re now seeing the early DeFi use cases, but in the longer term, all of the accounting, taxes, and all of that will be done with Bitcoin.

All of the DeFi then becomes a bridge to “ReFi” where it is available in retail stores and we use this as the primary currency for all of our purchases. It will only become part of the world economy. I think this will include Bitcoin along with four or five other cryptocurrencies.

Ultimately, I think that fiat currencies will slowly disappear. And I think the governments that say, “Oh, I’m making a centralized cryptocurrency pegged to my country’s currency,” nullify half the purpose. Half the purpose of this is that your currency is not tied to any political force. You cannot inflate yourself against debt and you cannot work the way Argentina has been for 100 years. You have to act fairly across the board. That’s the beauty of cryptocurrency that fiat governments don’t have.

CT: And are you still sticking to your prediction that Bitcoin will hit $ 250,000 by 2022?

TD: Yes, Bitcoin will hit $ 250,000 by 2022 or early 2023. That $ 250,000 is actually based on a 5% market share of currencies. I think this is easy to achieve, especially as more women are using Bitcoin as they control 80% of retail spending. It’s really interesting that there used to be one of 15 Bitcoin wallets that women owned and now it’s moving forward. When women start using these wallets they will find that it is a lot easier to do. I’ve invested as much of my money in Bitcoin as I felt fair. Yes, I think that will certainly be true, but a lot of people think that was a little too conservative.