Bitcoin advocate and Venture capitalist, Tim Draper believes, “Bitcoin is going to really flourish in a time like this.”
In his recent interview, Draper shared that crisis is where “people start thinking for themselves” and from where “some of the best entrepreneurial ideas,” come upon.
“This tends to be a very good time for innovation,” he said.
While there is an opportunity, the drawback is also always there in the form of recession, tightness of cash and liquidity that can have a “detrimental effect.” Also, during these times, a lot of people lose their jobs, as we saw nearly 10 million people in the US filed for unemployment claims in two weeks.
Draper said, though that’s very tough, it’s a part of the refreshing that happens to an economy.
And this would be why people are asking the question of how to use Bitcoin, smart contracts, and artificial intelligence, he said.
Crypto commentators have been vocal in their opinions that Bitcoin is created for a time like this and it will shine. Draper is also of similar opinion as he explained that bitcoin will flourish because central banks are printing huge amounts of money.
Central banks have announced trillions of dollars worth of stimulus and are preparing for more. But they can’t put this much money into the economy easily, they have to do it through different sources like the SBA and there would be all sorts of friction to get this money into the market.
“It’ll be years before that money actually permeates the economy, so this is going to be a really interesting time where people say well why don’t I just use Bitcoin,” Draper said.
In contrast, the deflationary hard asset Bitcoin will only have a supply of 21 million ever.
With Bitcoin “people don’t have to worry about whether a government is diluting their currency by printing tons of it. We can instead just use a currency we all agree on and it’s all a part of the economy and it’s already frictionless and open and transparent and global but why bother with these other ones, so that’s an exciting thing,” he added.
According to experts, gold makes the most sense in times like this and bitcoin as well according to the likes of Tim Draper, Robert Kiyosaki, and others.
‘Rich Dad, Poor Dad’ author recently shared that with the governments printing cash, dollar dying, and the stock market plunging, god’s money gold and silver and people’s money bitcoin are the best options.
“The global macro environment has never before aligned the stars to highlight the value proposition of crypto quite like what we’re about to see in the next 24 months. Hold on to your seats,” also said Brendan Blumer, co-founder and CEO of Block.One, the company behind EOS.