in Recent Social Media Postslegendary venture capitalist Tim Draper predicts that Bitcoin could be heading infinitely against the US dollar.
According to the American billionaires, this can occur in cases of hyperinflation.
Draper recalled how Confederate dollars lost almost all of their value during the Civil War.
“Greyback” was originally worth the same as the US dollar. However, the Confederate government was forced to print enormous sums of money to ensure that the efforts of the war could be maintained. As a result, the Confederate dollar quickly lost its purchasing power due to lack of international support.
People were desperately trying to maintain their wealth by exchanging dollars for something concrete amid hyperinflation. Gold was very popular and no one was willing to sell it. By the end of the war, you’re expected to pay $50 for a bar of soap.
Draper notes that the US Dollar Index (DXY) is off to its worst start of the year in its 40-year history. He believes it could drop much further due to the escalation of geopolitical tensions.
“And once geopolitical tensions escalate to extreme levels, faith in the dollar can be much more distant,” he said.
According to Draper, Bitcoin could act as a hedge if there is a real crisis.
“So, if the system breaks down, you don’t want to be someone who wants to withdraw cash from the bank or stock up on your room. You want to have enough Bitcoin to hold you and your family for six months to a year,” he emphasized.
Previous draper prediction That Bitcoin could reach $3 million.
