Tim Draper on Bitcoin's Unstoppable Attraction

At the heart of Draper's perspective is the conviction that bitcoin represents a superior technological advancement compared to any government-issued currency. Approximately 20% of the global adult population lacks access to banking services, according to the World Bank, but bitcoin enables these individuals to make online payments and manage their savings efficiently. It also excels in cross-border transactions, with bitcoin transfers typically processed within 10 minutes to an hour, in stark contrast to the three to five business days required for traditional wire transfers. This excerpt is from The Node, a daily newsletter that summarizes key crypto news from CoinDesk and beyond. Subscription to the full newsletter is available. Despite being a 16-year-old technology, Draper believes that any innovation in the crypto space will ultimately find its way back to bitcoin due to its gravitational pull. He compares this phenomenon to Microsoft's development of its own word processor and spreadsheet program by replicating technologies from other companies. Draper notes that smart contracts and DeFi are being integrated into bitcoin, resulting in a significant increase in its market share from 40% in 2022 to 61% today. The superiority of bitcoin's technology is, in Draper's view, a key reason why the federal government's initial hostility towards crypto was misguided. He argues that the U.S. has lost approximately 10 years of value due to this stance and, despite the current administration's pro-innovation stance, still lags behind in adopting crypto technologies. Draper's vision for the future includes retailers potentially refusing to accept U.S. dollars, anticipating a time when fiat currencies may become obsolete.