Tech startup founders tend to live in the future, seeing future developments that most can’t yet perceive as achieved facts. The same is true, apparently, of venture capitalists. Tim Draper has led investments in companies like Skype, Tesla, and Twitter.
“In five years, if you try to use fiat currency they will laugh at you,” Draper told me at WebSummit while wearing a tie with cryptocurrency logos on it. “Bitcoin and other cryptocurrencies will be so relevant … there will be no reason to have the fiat currencies.”
Bitcoin, of course, is the grandfather of cryptocurrencies and currently has a market capitalization of about $120 billion U.S. That compares poorly to a global fiat currency value in the $2 trillion range. (Fiat currencies, of course, are how cryptocurrency fans tend to refer to national currencies.) But Bitcoin has appreciated over 700% in 2017 alone.
Draper’s DFG Venture Capital has long been bullish on Bitcoin. He famously bought 30,000 Bitcoin in 2014 in a government auction of assets seized from Silk Road, the online black market. At the time, it was worth under $20 million.
Today, that same 30,000 Bitcoin is worth almost $214 million dollars.
Making over $200 million on just one bet might tend to make anyone bullish on Bitcoin, Ethereum, and almost any other cryptocurrencies.