Tim Draper Predicts the Demise of the Dollar, Foresees Bitcoin as the Future of Payments

Venture capitalist Tim Draper, founder of Draper Associates, believes the U.S. dollar is on its way out. He anticipates that retailers will soon favor Bitcoin as a preferred method of payment.

Draper, known for his successful investments since the 1980s, famously purchased approximately 30,000 Bitcoins auctioned by the U.S. government in 2014. At the time, the sum was valued at $18.7 million. Today, those coins are worth over $3.1 billion.

Draper’s Vision: Bitcoin as a Medium of Exchange

While Bitcoin has largely been viewed as a store of value due to its scarcity, Draper argues it still has the potential to become a widely used currency.

“The dollar is going extinct,” Draper stated. “People will rush to spend it as it loses value. Retailers will soon prefer Bitcoin. And when they do, that’s when people will start spending Bitcoin.”

The dollar is going extinct. People will rush to spend it as it loses value. Retailers will soon prefer Bitcoin. And when they do, that’s when people will start spending Bitcoin.

Draper’s perspective aligns with other prominent figures in the financial world.

Michael Saylor, known for his company’s consistent Bitcoin accumulation, likened Bitcoin to digital gold. He referenced the Rothschild family, who were once the wealthiest in the world during the 19th century, and their use of gold as a standard for value.

“Liquidation in cash for the Rothschilds in the 19th century… I mention this because Bitcoin is a peer-to-peer money system, right? And a lot of people keep telling me on Twitter, ‘You don’t understand what peer-to-peer money is,'” Saylor explained. “But when the Rothschilds liquidated a bearer bond transaction in the 19th century, that meant they traded the bonds for gold bars or gold coins. In other words, money meant gold.”

Saylor believes the world will transition to a Bitcoin standard in the 21st century. His company currently holds a significant amount of Bitcoin.

Other Industry Leaders Share the Vision

David Marcus, formerly of PayPal and Facebook, has also suggested that Bitcoin will become the network for payment settlements. In 2023, Marcus launched Lightspark, a solution using the Lightning Network for institutional clients.

Lightspark aims to enable businesses to transact in different fiat currencies, such as sending Brazilian Reais and receiving U.S. dollars, using Bitcoin as an intermediary network.

Furthermore, an executive from Jack Dorsey’s Block has highlighted how the company is generating revenue by routing transactions on the Lightning Network.

Dorsey himself has expressed that Bitcoin has fallen short of its potential as a currency.

“I believe that [Bitcoin] fails through irrelevance. It simply ceases to be relevant to people in their daily lives. If it ends up being just a store of value and nothing else, I don’t think it gains any relevance at all,” Dorsey stated.

“I think it needs to be used for payments to be relevant in everyday life,” Dorsey added. “Otherwise, it’s just something you buy, forget about, and only use in emergency situations or when you want to become liquid again.”

Jack Dorsey recently lit the match. In a hypothetical future where Bitcoin fails, he imagined it never becoming part of daily life. “If it’s just a store of value… it fades into irrelevance.” That take reignited a core tension in the movement.

The growing interest among billionaires in Bitcoin’s potential as a currency, whether through accumulation or the development of innovative solutions, indicates a possible shift in the cryptocurrency’s narrative.

This trend is emerging in the United States, the home of the world’s most widely accepted currency. It is conceivable that this trend will gain momentum in countries with weaker currencies.

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