Venture capitalist and cryptocurrency influencer, Tim Draper, recently sat down to do an
Ask Me Anything. Draper answered questions related to startups, venture capital, the media, and of course Bitcoin.
There was a lot in the AMA video which business-minded people should definitely watch. But, people are busy, so we’ve pulled out some of the highlights.
With Geopolitical Tensions Rising, Where Do You See Bitcoin in the Short Term?
Here’s a classic Draper answer: Don’t look at cryptocurrencies in the short term.
I never make Bitcoin predictions in the short term because in the short term anything can happen. People can manipulate the price. It moves up, it moves down, depending on big customers coming in to buy, or big owners coming in to sell, said Draper.
If you’re in Bitcoin for the short term, you’re making a mistake.
That’s because cryptocurrencies are a
long term haul according to Draper because it’s not just a commodity, it’s the future of money.
However, Draper does emphasise that sometimes, Bitcoin will feel very valuable, and sometimes, you may feel like dollars are what your really want to hold onto.
When you feel like dollars are what you really want to hold onto, you probably want to buy Bitcoin, and when you feel like Bitcoin is what you really want to hold onto, you should probably buy dollars, advised Draper.
Africa and the Future of Bitcoin
Two questions asked about Africa, both as a future market for cryptocurrencies and specifically of Draper’s work in the region.
Many people, especially big-picture crypto enthusiasts like Andreas Antonopoulos, see Africa as a market for cryptocurrency adoption. Because of the nature of trade in Africa, people in some regions carry many different currencies. They also face dangers carrying physical money across borders.
You know that there are going to be a lot of opportunities in Africa as long as the leadership is first open and allowing a free market, and second trusted, said Draper.
false starts in Africa, he expressed optimism towards the BitPesa project for borderless currency transfer. Draper also discussed the idea of decentralised currency as a future direction for civilisation.
For thousands and thousands of years, we have run on the principle of tribalism, of fiefdoms, of me vs. you, and if I win I get the resources, and if you win you get the resources so it’s life and death, said Draper.
That’s where all of these borders were created … but now we’ve got decentralised technology. We’ve got Bitcoin and blockchain and smart contracts and all of this artificial intelligence. And that opens us up to be much more of a global people.
In this future, different governments will compete for citizens in much the same way that consumer companies compete now.
Who Are the Luddites in the Current Technological Revolution?
When asked who the Luddites are, Draper gave a bit of a confused history of the origin of the term. Wherever the term came from, it describes hold-outs of a technology and Draper has some thoughts on today’s Luddites.
I don’t know if we have Luddites in the world today but I do know that people are resisting [Bitcoin and other technologies] because they feel their business is threatened, said Draper. He believes that many industries are threatened, such as banking, finance, commerce, and healthcare (though they don’t know it yet).
Many governments feel threatened, Draper also added.
Draper later explained that this is largely because
Governments make money on their money. They also use it as a controlling device on their population.
He then gave examples of countries that have been more open to cryptocurrencies, including Japan, Gibraltar, and Malta.
I actually believe that the governments that open up first are going to be the big beneficiaries of the next 20 to 40 years, said Draper.
Draper also suggested using Bitcoin airdrops as aid for struggling countries as opposed to giving aid money to the governments.
Renaissance 2.0 and Everything Else
One Facebook user also asked Draper about the idea of cryptocurrencies and Renaissance 2.0. The idea comes from a theory that double-entry bookkeeping sparked the Renaissance. The method, developed by Italian bankers and merchants, made trade safer and more efficient.
In this new world when we’re all using Bitcoin, we’re not going to need the accountants, [or] we’ll use the accountants for other things, said Draper.
If you have a perfect ledger and it keeps perfect track of all of the money you’ve spent and all of the money you’ve brought in, that’s all taken care of. It’s already done, and it’s on the blockchain. He believes that in the near future, about 4 years from now, we probably won’t need all the accounting services, if we’re all using Bitcoin.
To hear more of Drapers thoughts about entrepreneurialism, the borderless world and more, watch the whole video.