Is This The End of Fiat Currency?
Predicting the future can be a fun game. But for some, it is not really a game, but more of a livelihood. This includes legendary investor and venture capitalist Tim Draper, who was an early investor in major Internet companies. Draper made a bold prediction: that within 5 years the only currencies in circulation will be cryptocurrencies.
The barista will literally laugh at you
He says that by that time if you go into a Starbucks and try to pay for a coffee with dollars, the barista will literally laugh at you. He further says that it would be the equivalent of going into one of their stores today and trying to pay for your drink with hundreds of pennies. He went on to say that this moment is the most excited he has ever been about being an investor, and this includes the early days of the Internet.
Investing in Cryptocurrency for the Future
Draper is someone who puts his money where his mouth is. The man who famously invested early in companies such as Baidu and Skype, bought $250,000 worth of bitcoins back when the price was $6. Even after he lost the entire investment in the Mt. Gox fiasco, he was not swayed. He later bought about 30,000 bitcoins for around $20 million back in 2014, when the U.S. Marshal Service put them up for auction after confiscating them from convicted Silk Road founder Ross Ulbricht. Draper insists that he still holds these coins, so he currently holds a position well in excess of $300 million.
Cryptocurrencies will become a dominant force in every industry
He believes what will drive fiat currencies into the dustbin of history is the need for a global currency that is not subject to political whims, which only cryptocurrencies can fulfill. He also believes that, while there will be ups and downs leading toward the worldwide adoption of cryptocurrencies, the currencies — along with their underlying blockchain technology — will become a dominant force in every industry, and that they will drive almost all commerce.
While only time will tell if Draper is right, not too many investors have made a living betting against him if any at all.