Tim Draper is aiming for a “DeFi” venture capital deal with Bitcoin

Two decades before, famous venture philosophical and Bitcoin investor Tim Draper openly said that Bitcoin will strike $250,000 from 2022. However, as Bitcoin has been attract personal interest from investors,” Draper advised Cointelegraph in a meeting which the price prediction of $250,000 may be conservative:”I think that it will surely arrive. But a lot of individuals believe that the $250,000 is a bit too cautious. “

Draper also discussed the impact of the COVID-19 pandemic on the blockchain space, noting that cryptography will play an important role in solving problems related to global shipping and real estate. In addition, Draper shared his thoughts on decentralized finance, or DeFi, and said that in the future he would like “‘DeFi’ to function as venture capital company “.

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

Cointelegraph: Your thoughts on how the COVID-19 pandemic is affecting the blockchain space?

Tim Draper: A lot has happened since the pandemic. Some say this is a special time for us to introduce new technology. People get stuck asking themselves, “Yeah, why don’t you try and determine what VR is such as for telemedicine or distance learning? ” Some of the things we advocated got a lot of attention during the pandemic because people cannot leave their homes.

Another thing was that when the US government was printing $ 13 trillion, it immediately diluted the dollar by 20 or 30%. It was a real shock to the system. People then say, “Well, wait, where do I put the money? Do I put it in gold or in bitcoin where it is a great store of value? “A lot of people have said that 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 starve to death as a result of the government’s response to the pandemic. The government shutdown has crippled various supply chains around the world. As a result, people go hungry.

But whenever there is a crisis, there is a great opportunity to do something extraordinary. For example, when there was a financial crisis, Satoshi Nakamoto invented Bitcoin. And I think if we can put more restrictions and more accounting systems around the blockchain, we will be able to use bitcoin dollar swaps.

CT: Right now the world is in crisis. What technological breakthrough will empower humanity on the other end?

TD: Encryption will increase. We see it in real estate, in worldwide shipping and in everything where valuables need to be transported between parties. These items can now be shipped over the Internet, which is useful for industries such as real estate and shipping worldwide. With real estate, you can buy part of my home or tokenize my property and own part of it without having to buy the whole thing.

Tokenization and shipping are also a great way for any container owner to keep track of the entire IoT. I think we’re going to see some extraordinary breakthroughs in shipping and any type of logistics use case as well.

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

TD: I think DeFi happened. People sat on their bitcoins or their other cryptocurrencies and watched them appreciate in value rather than let the money spend. However, you want your money to be used all the time.

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

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

Ultimately, I think that the fiat currency will slowly go away. And I think governments are saying, “Oh, I’m likely to make a centralized cryptocurrency pegged into my nation’s money,” that is half of the stage. Half the intent behind the is your money is not tied to any political drive. You can’t inflate the debt and you can’t get the job done as Argentina has been for 100 decades. You must act rather on a expansive scale. ) That’s the attractiveness of what we have in crypto that authorities do not possess in fiat monies.

CT: And are you sticking to your forecast which Bitcoin will strike $250,000 from 2022? That $250,000 is really based on 5 percent of the money market share. I believe that this is readily achieved, particularly as more women begin using Bitcoin since they control 80 percent of retail spending. It’s extremely intriguing there was among 15 Bitcoin pockets which were held by women, and today it is growing. When women begin utilizing these pockets it will become easier for them to attain it. I moved up to my cash as you can in bitcoin. And yes, I believe that it will surely get the job done, however a lot of individuals believe this is a bit overly conservative.