Tim Draper, a venture capitalist and founding partner of Draper Associates, believes that altcoins could ultimately enhance Bitcoin by serving as testing grounds for upgrades.
In an interview on CNBC’s Squawk Box on Monday, Draper stated that over time, “many other cryptocurrencies” will emerge, contributing to Bitcoin’s (BTC) supremacy.
“Competition benefits the world, and in previous booms, Bitcoin’s market share was 40%, then 50%, and is currently around 61 to 62%,” he remarked.
He added that “the leading provider develops the strongest network,” which leads developers to favor the “dominant supplier.”
Microsoft as the Bitcoin of Web2
A comparable scenario unfolded with Microsoft, according to Draper, since most developers focused on it initially. Although some applications were created elsewhere, they eventually transitioned back to Microsoft.
Microsoft is recognized as a leading technology giant, with its Windows operating system commanding over 71% of the market share.
“The same phenomenon is occurring with Bitcoin. Numerous smaller cryptocurrencies are innovating, and talented engineers are adapting those innovations to Bitcoin, resulting in a gravitational attraction towards Bitcoin,” he said.
“Other currencies may emerge momentarily, but I believe we are heading towards an overarching trend favoring Bitcoin.”
However, data from Electric Capital suggests a different narrative.
Their recent developer report estimates only 2,583 developers are currently engaged with Bitcoin, compared to 12,931 on the EVM stack and 9,094 on Ethereum.
Bitcoin as a safeguard against poor government spending: Draper
Draper also reiterated that Bitcoin serves as a hedge against mismanagement and excessive government spending.
He noted that governmental expenditures have spiraled out of control, with spending as a percentage of GDP soaring over the past century, showing no signs of abating.
The U.S. national debt continues to rise yearly, with the Treasury Department estimating that debt has surged from $395 billion in 1924 to over $37.2 trillion in 2025.
“Your only protection against such government spending is Bitcoin, unless you prefer gold, which is akin to holding onto shells—prehistoric thinking in modern economics,” Draper asserted.
“Bitcoin provides an alternative to navigate significant changes in government policy over time.”
The $250,000 price projection remains feasible
Draper has forecasted that Bitcoin might reach $250,000 and potentially render the U.S. dollar obsolete, although he admitted that this prediction has not yet materialized.
Related: Harvard economist concedes he was mistaken about Bitcoin’s decline to $100
“I’ve been anticipating a $250,000 valuation for Bitcoin for a substantial period. While I have not been correct thus far, we’ve made significant progress, which is thrilling,” he stated.
Draper, however, previously foresaw Bitcoin hitting $10,000, a prediction realized in 2017, and expressed to Cointelegraph in 2023 that he was under pressure to project a new target of $250,000 by the end of 2022 after successfully guessing the previous price.
Bitcoin achieved a record high of $124,450 on August 14 but has since declined by 11.8% to approximately $109,144, according to CoinGecko.
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