Keeping money in the bank could be a risk, according to billionaire Tim Draper. With banks “being hacked all the time,” the venture capitalist is slowly moving more and more money into bitcoin.
Draper made his billions by investing in startups like Hotmail, Skype, and Tesla. Now, he is betting on cryptocurrencies, predicting virtual currency will be “the biggest change in the history of the world.”
“I see [this shift] happening faster than anybody ever imagined,” Draper told Fox Business. “I think within four years, around 2022, bitcoin is going to hit $250,000.”
As the public becomes more aware of bitcoin and its potential for gain, a demand for a decentralized global currency will grow. He suggests everybody, even investors with little money, should be buying cryptocurrency.
“I think it’s probably worth it to just take a small amount of money, something you can lose and just go and try because all of sudden you will start to see the future and see that this is where it’s going.”
Per Bitcoinist, Draper told hosts on CNBC’s Closing Bell last week that traditional banking is consistently at risk from hackers. He prefers the security of bitcoin.
“Right now, your banks are being attacked all the time. The hackers are poking holes in your banks and going after your fiat money, and the bankers are pounding away trying to keep the hacks away, but they’re getting hacked all the time. No one has ever hacked the bitcoin blockchain. It is the most secure place to put your money.”
Draper also explained the substantial risk of government-issued currency. Citing the recent economic turmoil experienced in countries like Venezuela and Nigeria, Draper warned investors are likely to lose fortunes buying into those economies. However, by diversifying and putting some money into cryptocurrency, the risk is reduced.
Draper expects technology will make traditional money obsolete within five years and governments will be using blockchain to perform most services within 10 years. He also points out that the fluctuations of politics do not influence bitcoin and other cryptocurrencies. As a result, businesses will be able to operate more independently and free from government policies and instabilities.
Tim Draper believes in bitcoin and its impact on the future of the world economy. The respected tech mogul is convinced virtual currency is not a fad and something even the average investor should be taking seriously.