Don't invest in cryptoassets unless you're prepared to lose all the money you invest. Cryptoassets are high-risk investments, and you are unlikely to be protected if something goes wrong.Take 2 mins to learn more

Thanks to our supporters

brand imagebrand image
How-DeFi-Is-Doing-Things-Banks-Could-Never-Do-With-Tim-Draper.jpg
listen

How DeFi is doing things banks could never do with Tim Draper

Venture capitalist Tim Draper, founder of Draper Associates, is a bitcoin bull and is actively investing in cryptocurrencies. He discussed the dynamic between Wall Street and crypto, saying: (18:32) “I have a pretty good sense. Because we’re investors in a lot of great crypto companies,…

Share

Share to Facebook
Share to Twitter
Share to Linkedin

Venture capitalist Tim Draper, founder of Draper Associates, is a bitcoin bull and is actively investing in cryptocurrencies. He discussed the dynamic between Wall Street and crypto, saying:

(18:32) “I have a pretty good sense. Because we’re investors in a lot of great crypto companies, Coinbase, Tezos, a lot of these currencies. And they have had a heyday during the lockdown. Things have gone very well. So here’s what happened. All the early adopters were there and very impassioned and excited about what they were doing. And then the lockdown happened, and then people said, ‘huh, what is this crypto thing? Well maybe I’ll put together a bitcoin wallet, let’s see what happens.’ And then they go, oh my gosh. I can keep all my money in something like this? I don’t have to give it to the banker?’ And so they started to take their money out of banks and put it into crypto. Well naturally that’s going to freak out Goldman Sachs.”

Draper also discussed the destabilization of the world’s fiat currencies and how it is making bitcoin look good.

(21:14) “If you’re in argentina with the peso you know that it’s going to devalue about 30% a year. Or if you’re in Nigeria with the naira you know it’s going to devalue 50% a year. Or Venezuela with bolivar. They all devalue and everybody knows it and holding onto those currencies is like a hot potato. And they’ve all started to adopt bitcoin as their above-government currency. Well now, I think the US is starting to realize, hey, our currency is also subject to political winds and we are going to need an alternative that doesn’t dilute, that doesn’t force inflation, that is easy, transferrable, open, global, which is better than the dollar — the dollar isn’t accepted everywhere — and it’s transparent, it keeps a perfect record. And so all these people are starting to use it…and they’re pulling their money out of the banks.”

Draper is also bullish on decentralized finance, saying that DeFi is going to challenge the banks.

(29:19) “So I think DeFi is just, it’s pretty interesting because it’s not only doing all the things that you can do with your bank but it’s doing new things that no bank could ever do — micropayments, airdrops, new ways of moving money around or to different countries, new ways of employing people/of working with people, new ways of helping the…economy, which we need really badly right now because we’ve got 41 million unemployed in the US and about ten times that worldwide. Yeah, I think DeFi is a big opportunity and people should be getting behind it. And you do sort of side-step the bank…The world is changing and it’s going crypto and it’s going toward bitcoin and the blockchain and smart contracts.”

Gerelyn Terzo
Gerelyn Terzo
Gerelyn caught wind of bitcoin in mid-2017 and after learning about the peer-to-peer nature of Satoshi's creation has never looked back. Previously she covered institutional investing and fintech for several major trade publications. Gerelyn resides in Verona, N.J.

You may also like

Article-Thumbnail-Cesar-Cerrudo.jpg
listen

Cybersecurity in crypto: Attack on DeFi Exchanges

What exactly happened in the biggest hack in DeFi? Can it happen again? As the ecosystem grows, its market has also experienced a huge pump with a current market capitalization of over $121 billion. However, this growth has also shined a light on cybersecurity issues….

Read more
obi-nwosu-e1618557591836.jpg
read

Decentralisation – coming to a screen near you

You should never laugh at people from the past, unless you’re comfortable with future generations mocking you. But it’s still funny to think that in the early days of radio, families used to gather in front of their giant, sideboard-sized sets and stare at them…

Read more
Henry-Burrows-Featured-Image.jpg
read

Crypto-backed property purchases are on the rise among first-time buyers

Traditional businesses are partnering with blockchain intelligence firms to facilitate house purchases for a new generation of young crypto entrepreneurs. In December 2017 two properties were purchased in the UK with Bitcoin.  The purchases sparked excitement that Bitcoin-backed property transactions would become commonplace, reflecting the…

Read more
Onchain-Reaction-Featured-Image.jpg
listen

Onchain Reaction with Tom Salter – Who Has Been Driving Bitcoin’s August Price Rally?

Tom joins to review Bitcoin’s price rally, along with the aftermath of Chinas’s crackdown in July and the explaination behind the market’s current bullish picture.

Read more

Recommended

Subscribe to us

Understanding your dog for dummies cheatsheet

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.