Despite the ongoing bear market, Draper maintains his opinion that cryptocurrencies will contribute to increasing the velocity of money within the next ten years. Draper anticipates a decrease in fiat currencies, which may leave cryptocurrencies as a whole accounting for 10% of the overall market.
Although Draper, who now holds $250 million in Bitcoin following winning a bid for the funds from the operators of online black market Silk Road, suggests that small amounts of digital assets should be purchased gradually, he emphasizes his belief that these digital assets will continue to grow and surprise the market as they become easier for consumers to utilize. Draper has advised potential Bitcoin buyers to “jump in” during dips in valuation before an inevitable spike occurs.
On the topic of the blockchain, Draper noted its importance, and believes the technology has sparked the beginning of “something that’s bigger than the internet ever was.” Draper added,
What’s great is that when you buy some Bitcoin or you move something on a block, it is secure and you know that all those people and all those computers are making sure that that block was moved properly. There are plenty of hacks around the crypto-world but the Bitcoin blockchain has never been hacked and you know — knock on wood — we don’t think it ever will be.
Draper went on to cite smart contracts as the catalyst that will change the manner in which both medicine and healthcare will exist in the future, stating,
Big Data with Deep Learning is going to determine if we have a headache. They’re gonna say: “Oh, you take two aspirin in the morning.” And me — they’re going to understand that I was in Fire Island and there is Lyme disease there and so I should check for ticks or take something preventative. And no doctor’s going to know that much about us.
When asked how blockchain and cryptocurrency may contribute positively to societies, Draper noted, “It opens up the whole world. I mean the internet opened up the whole world and we all started to get to know each other. Geographic borders started to fall.”
He outlines the benefits of a ledger, stating that the ease of merely downloading a desired amount of cryptocurrency and pulling it out when needed acts as a personalized bank, eliminating the middleman from all transactions.
However, as we previously suggested, investors should stay wary of round-number price predictions in both the short and long-term, even when they come from renowned investors.