Tim Draper is an early investor in bitcoin and has stated that he remains optimistic about the future value of the first cryptocurrency, despite the recent downturn. Draper believes the asset is still worth its value as an inflation hedge and that the market that we are currently navigating is “very similar to” the dot-com bubble burst but with higher inflation.

Tim Draper Still Bullish On Bitcoin

Tim Draper is a venture capitalist who was famous for making early investments in bitcoin. He has now explained his position on bitcoin’s value in today’s market. CNBC interviewed Draper to explain that bitcoin’s importance in the current market downturn, which crypto and traditional markets are currently experiencing, is due to its inflation hedge characteristics.

Draper told CNBC:

I’m still a big believer in Bitcoin as it provides a great hedge against inflation and will diverge from tech stock as speculators leave. As long as interest rates rise, I believe tech stocks will continue to fall.

He reaffirmed his belief in bitcoin as an inflation hedge asset. He stated that the currency’s long-term value can only be appreciated over the long term and added that it provides a safe haven from bad governance and excessive 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.

Draper stated:

I can move bitcoin anywhere in the world, and I have the trust that hundreds of thousands of miners are watching over the blockchain. There will come a time when I can use bitcoin to buy my food, clothing, shelter, and other necessities.

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 government is too regulated and we are losing innovation.

What do you think about Tim Draper’s remarks on bitcoin? Comment below.

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