Bitcoin To Infinity? Venture Capitalist Says Crypto’s Value Vs. Dollar Has No Ceiling
The US dollar index has declined 7% year-to-date, indicating a significant weakening of the dollar amid rising trade tensions. This decline has led investors to consider Bitcoin as a potential hedge against fiat currency failures. Venture capitalist Tim Draper suggests Bitcoin may appreciate in value as confidence in traditional currencies wanes, likening its current rise to historical shifts in monetary behavior. Draper cites the Confederate dollar's collapse during the Civil War as a warning of how quickly trust in a currency can erode. He argues that Bitcoin's digital nature, limited supply, and independence from central banks make it more appealing than gold, which faces challenges like storage costs. Draper notes that even some governments are exploring Bitcoin reserves, reflecting a changing perception of cryptocurrencies among both private and public entities.
