Tim Draper now has “many” of his investments in Bitcoin (BTC) after taking his wealth out of the public stock markets six months ago. Speaking to the CNBC on February 24, the venture capital investor revealed that he had significantly increased his cryptocurrency holdings since last year.
When Draper was asked how much his faith in Bitcoin was, he made it clear that it was a lot. He also said that Bitcoin was much better, and that he was a believer that people should move towards better things.
Especially, at a time like the current one in which stock markets plummet around the world thanks to the effects of Coronavirus, Bitcoin remains relatively in good condition. That is why Draper let him know that his exposure to this crisis was quite limited.
Draper talks about the signals that the stock market gave him to get out of there
This investor commented that he knew that the market was rare or “sparkling” when he saw that even Uber drivers were doing daily trading. According to him, all the signs were there.
Also, because you have a venture capital firm, Drapper Associates, you can find out more details about private markets. His other major crypto investment, Tezos (XTZ), has more than doubled since the beginning of the year.
Draper vs Buffett: BTC or the Stock Exchange
Recently the president of Berkshire Hathaway, Warren Buffett, revealed his anti-bitcoin vision. Specifically, he declared that cryptocurrencies have no value and neither are productive investments.
Buffett also stated that cryptocurrencies do not reproduce, you cannot make a check of them, basically nothing. According to him, with cryptocurrencies “you only have them and expect someone to come and pay you more money.”
Given this, Draper replied that it is normal to be worried about that. He also added that the health of investments such as banks and insurers will change dramatically for the worse, disagreeing with Buffett’s comments about Bitcoin.
At the moment, the variations of Bitcoin with respect to the dollar indicate that it is still a good option for those who favor speculation and profit strategies.
There is no definitive answer, but it can be said that Bitcoin and cryptocurrencies work for those who are willing to submit to a considerable level of risk for considerable profits, or at least this is what Draper defends against the arguments of people like Buffett.
Degree in Liberal Studies from the Metropolitan University. Lover of innovation and believer of technology for the future.