Why Tim Draper Is Betting Big on Crypto
The underpinning of that is it that its a new form of transaction that you think will be will take off and be around. Is it this? This notion that fiat currencies will uh will kind of fight lose their place of dominance? What sort of drives your ethos on crypto well on on bitcoin, specifically, i i look – and i say bitcoin – represents trust and freedom in a world that is starting to get um get less of both in in the fiat world and and fiat is less trusted, because Governments are just printing them, willy nilly to just build their own coffers and uh, and this is a great hedge against the inflation you were just talking about thats happening worldwide and so for investors. I think holding on to bitcoin is probably a good place to be because there are only 21 million bitcoin out there and they represent the freedom that allows us to um, to use them anywhere and the trust in that it is uh youre trusting in the software. Rather than trying to trust into some bank or some government entity – and we see your bitcoin tie – so we know, of course, where you stand on that, but youre not wearing an ethereum ty right. What about some of the other currencies outside bitcoin were looking at? Maybe the underlying blockchain technology is a better open, transparent way, sure um well, some of those also can inflate the way governments can inflate and so im im, always very careful about that.
What i look for is who are the entrepreneurs and who are the engineers behind a given token? I love some of the tokens. I love tazos because its got a great engineering team and theyve theyve redefined how to operate a token uh. They they do it as proof of stake, they use less energy and they um and they have a new form of governance and thats, exciting uh, uh aragon. Similarly, uh is going to redefine how uh how uh juries work. Tim love always chatting with you about bitcoin. Your bitcoin tie talk to us about some of the other underlying blockchain technologies that youve been really uh interested and investing in as well so uh. As i mentioned, there are a couple of really exciting places for where bitcoin, the blockchain, smart contracts and all of the technologies around them um are going to play. A big role in transforming some of the biggest industries in the world already were seeing it in banking. Were going to see it in commerce were going to see it in government were going to see it in insurance and speaking of government, its interesting whats happening in south america. We have a relationship with cygnus and vcm, where were weve worked with cygnus for a long, draper cygnus for a long time in argentina, but clearly a lot of entrepreneurs are moving to uruguay or el salvador, because so much interesting things so much um great change is Happening around south america that we, we feel like theres a big opportunity there, but do you feel like the vc crypto world then is in a bubble? No, not at all.
In fact, this is just it. It feels like a groundswell, its slowly but surely just taking over every industry um there will be a moment. I believe that when i can buy groceries and which you can in el salvador now through open note um, you could, where you can buy groceries and you can buy your clothes in bitcoin all of a sudden. There will be no reason to hold fiat currency. Why hold a currency thats, subject to the whims of some political force, when you can hold a currency that where there are only 21 million of them and its trusted and its global and its open and its transparent, that is going to be occurrence? We we can all get behind thats bitcoin, so i am seeing the beginning of this is just the first inning of one of the biggest groundswells. I think well ever see in the history of our lives. What about nfts anthropological leap, i think, were starting to see an anthropological leap. Nfts are great, i, i think theyre crea theyre, building all sorts of creativity, theyre, starting with the art community, theres theyre, um, theyre, theyre, making it so that you can uh own a specific thing in the cloud. You can own a specific thing in the internet and that can be a piece of art where its just one of it can be your identity. I think thats going to be a big breakthrough. I think youre not going to have to use passwords anymore.
I think it can be your um, your diploma, your whatever it can be specific to you and so nfts um. This is the beginning, the art and the games and the the board apes, but its its eventually, i think, were gon na see um some tremendous new technologies coming um out of nfts and i hope to be able to fund them yeah. So, where what are some of those new investments and fundings that youre involved in, are they primarily in latin america, given they, some would say, are ahead of the us when it comes to cryptocurrencies? It is interesting. I mean in latin america, weve got three that have hit unicorn status, satologic, autho and mural, but we have another company called unstoppable domains that allows you taylor, you could get taylor.crypto and you can put whatever you want on there and you can make it your wallet For trading crypto for uh holding money for whatever it is you want, you can actually save things on there um. You could be chinese and say free tibet. You could say you could be a syrian and say i dont, like my leader, anything because it its unstoppable. It cannot be stopped, and – and so i think that thats the beginning of free speech around the world, i think its – the beginning of a new uh, a new world economy uh, where were all our wallets and our identities and all of our assets are all interconnected.
We only have them really were going to go through this.