Tim Draper, a venture capitalist and founding partner of Draper Associates, believes that altcoins may ultimately enhance Bitcoin by serving as experimental platforms for upgrades.
In a CNBC’s Squawk Box interview on Monday, Draper stated that numerous other cryptocurrencies will emerge over time, contributing to Bitcoin’s (BTC) increasing dominance.
“Competition is beneficial for the world. Initially, Bitcoin held a 40% market share during its first boom, then 50% in the next, and currently it stands at about 61 to 62%,” he noted.
Furthermore, he added that over time, “the leading supplier cultivates the strongest network,” prompting developers to focus on the “leading supplier.”
Microsoft was the Bitcoin of Web2
Draper compared this scenario to Microsoft, claiming that most developers were building on it when it first emerged. Some applications, however, were developed elsewhere and later ported.
Microsoft is regarded as a leading tech giant globally, with its Windows operating system capturing over 71% of the market share.
“The same dynamic is occurring currently with Bitcoin. Numerous smaller cryptocurrencies are innovating, and talented engineers are porting these innovations to Bitcoin, creating a gravitational attraction toward Bitcoin,” he explained.
“Other currencies may emerge briefly but overall, we are witnessing a significant trend towards Bitcoin.”
However, Electric Capital’s data presents a contrasting view.
Their latest developer report estimates a mere 2,583 developers are working on Bitcoin— a small fraction compared to the 12,931 on the EVM stack and 9,094 on Ethereum.
Bitcoin as protection against irresponsible government spending: Draper
Draper reiterated his belief that Bitcoin serves as a safeguard against poor governance and rampant government spending.
He noted that government spending has spiraled “out of control,” with its share of gross domestic product experiencing a “rapid increase over the last century,” showing no signs of “abatement.”
The national debt of the United States keeps escalating yearly, with the Treasury Department estimating that debt has surged from $395 billion in 1924 to exceeding $37.2 trillion by 2025.
“Your only safeguard against such government expenditure is Bitcoin, unless you prefer gold, which resembles collecting shells. It’s an outdated perspective on the economy,” Draper stated.
“Bitcoin is your alternative that empowers you to navigate the substantial shifts occurring in governmental policies over time.”
The $250,000 price prediction remains viable
Draper has forecasted that Bitcoin will reach $250,000 and eventually render the US dollar obsolete, although he conceded that this prediction hasn’t materialized yet.
Related: Harvard economist acknowledges misjudgment regarding Bitcoin’s crash to $100
“I have been predicting a $250,000 price for Bitcoin for an extended period. While I haven’t been correct thus far, we are halfway there, which is quite thrilling,” he remarked.
Draper previously predicted Bitcoin would hit $10,000, which occurred in 2017. He told Cointelegraph in 2023 that he made a new prediction of $250,000 by the end of 2022 due to feeling compelled to take another shot after his initial price forecast was accurate.
Bitcoin reached a new peak of $124,450 on August 14, but has since declined by 11.8%, trading around $109,144, according to CoinGecko.
Magazine: Solana Seeker review: Is the $500 crypto phone worth it?
