Tim Draper, a renowned Silicon Valley Venture Capitalist, recently spoke about Bitcoin and offered cryptocurrency investment advice during an AMA session on Facebook.
Draper said that the ideal period to invest in Bitcoin had not passed yet and that he had more faith in the digital asset than the US fiat currency.
Back in 2014, the FBI shut down the black market site Silk Road and seized 144,336 Bitcoins. The US Marshals Service auctioned these digital currencies, with Tim Draper purchasing 29,656 bitcoins at the time. Draper bought it for an estimated $18 million, worth around $118 million, at press time.
Tim Draper stated,
“What it is [Bitcoin] is the future of currency and the currency is going to be decentralised and open and you’re going to end up with a much more fluid, dynamic currency if you own Bitcoin, than if you own dollars.”
He also told investors not to worry too much with respect to the short-term price fluctuations in the cryptosphere. He indicated that it was not ideal to invest in Bitcoin while focusing only on the short term, suggesting that doing so was a “mistake”.
He stressed on the importance and value of Bitcoin and explained how it depended on people and heavy investors. He also added that people could manipulate the coin’s price, stating that its valuation could go up or down if big customers invested in or sold off the coin.
“Sometimes Bitcoin is going to feel very valuable … and sometimes you’re going to feel like dollars are what you really want to hold on to. When you feel like dollars are what you really want to hold on to, you probably want to buy Bitcoin.”
Tim Draper recently met Argentinean President, Mauricio Macri, suggesting that he should announce Bitcoin as a national currency. Draper was convinced that the decision would rescue the country from its current financial crisis. He said,
“That could end up being just phenomenal and globally, people will start saying I’m going to Argentina to start my business.”
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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.