Tim Draper Bullish on Bitcoin Due to Its Inflation Hedge Traits

Tim Draper Bullish on Bitcoin Due to Its Inflation Hedge Traits

Tim Draper, an early bitcoin investor, has declared he is still optimistic about the value of the first cryptocurrency even with the downturn its price has taken in the last months. Draper believes that the asset is still valuable as an inflation hedge, and that the market we are navigating right now is “very similar” to the dot-com bubble burst, but with higher inflation. Tim Draper Still Bullish on Bitcoin

Tim Draper, the venture capitalist famous for his early investments in bitcoin, has explained his stance when it comes to the value of bitcoin in the current market situation. In an interview broadcast by CNBC, Draper explained that the importance of bitcoin in the downturn that crypto and traditional markets are experiencing, has to do with its inflation hedge traits.

Draper told CNBC:

I’m still a bull on Bitcoin because it’s a great hedge against inflation, and as speculators leave it will diverge from tech stocks. I do believe that tech stocks will keep going down as long as interest rates keep going up.

He extended his vision of bitcoin as an inflation hedge asset, stating that this trait of the currency can be appreciated only in the long term, and noted it also provides a safe haven against bad governance and too much regulation. Bitcoin Advantages and Overregulation

Draper — who invested in bitcoin first via an auction of almost $30K in bitcoin organized by the U.S. Marshals Service back in 2014 — believes that bitcoin has a place in the future as an alternative finance system separated from the fiat world.

About this, Draper declared:

I am free to move bitcoin around the world and I have the trust of hundreds of thousands of miners watching over the blockchain. There will be a moment there where I can buy my food, my clothing and my shelter in bitcoin, and there will be no need for a fiat currency controlled by governments and banks.

The venture capitalist also believes that, even with all the problems that the bitcoin investments in El Salvador are causing, it has spurred a wave of innovation that is making companies in the sector move to El Salvador due to a crypto-friendly policy and regulations. He concluded:

The innovators are all going there because our government is overregulating and so we’re losing innovation because we have too much regulation. Tags in this story Bitcoin, Cryptocurrency, freedom, inflation hedge, Regulation, risk assets, Tim Draper

What do you think about Tim Draper’s remarks on bitcoin? Tell us in the comments section below. Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. A16z Launches $600 Million Web3 Gaming Focused Fund NEWS | 3 hours ago Crypto Custody Firm Fireblocks Launches Web3 Services Suite NEWS | 12 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleA16z Launches $600 Million Web3 Gaming Focused Fund Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design