Backed by early investments in Twitter, Tesla, Skype, and other companies, Silicon Valley's renowned venture capital godfather Tim Draper recently made a prediction in a Coindesk interview, claiming that BTC will completely replace the US dollar in just ten years, highlighting his firm belief in decentralized technology and deep concerns about the current legal tender system.
The Rise of Bitcoin and the Twilight of Fiat Currency
Draper believes that Bitcoin's technical advantages and the inherent fragility of the legal tender system are the cornerstones of his prediction. He further explained that once Bitcoin becomes widespread enough to pay for food, clothing, housing, and taxes, the US dollar will lose its fundamental reason for existence.
He also warned that legal tender banks may face a potential bank run in the future, and the global financial system might shift to the Bitcoin standard. He cited the Silicon Valley Bank collapse in March 2023 as an example, saying, "I got calls from 15 companies, portfolio companies, saying, 'I can't make payroll,'" Draper thus recommended that the finance departments of each company he funds should deposit both Bitcoin and legal tender in banks, so they can still pay wages if banks fail or people stop accepting legal tender.
He drew a parallel with the Confederate currency during the American Civil War, which became worthless after defeat, hinting at the massive risks inherent in the current legal tender system. Notably, the US dollar index has indeed faced pressure recently due to Trump's tariff war, dropping nearly 8% to 99.96, showing that the dollar is not invincible.
Once I can buy food, clothes, housing with Bitcoin, pay taxes, this is a better way of taxation. Certainly, there's no reason to hold any [US dollars], Bitcoin will become the primary source of wealth.
As a staunch Bitcoin maximalist, he also believes that stablecoins are merely a bridge during the digital currency transition period and will ultimately be unable to escape inflation, just like government-intervened legal tender. He stated directly:
Stablecoins will be affected by inflation... over time, their value will become lower and lower, whereas Bitcoin will not be affected by inflation.
The Future is Here: Revolutionary Breakthroughs in AI and Gene Technology
Beyond the financial realm, Draper also turned his gaze to the broad prospects of artificial intelligence (AI) and gene technology. He actively invests in cutting-edge companies like Colossal Biosciences, which is dedicated to "de-extinction," and expects these technologies to fundamentally change how humans interact with the world. Draper boldly predicts that humans will be able to communicate with animals in the future, such as understanding that a dog's sneeze might be describing a story it smelled, or that birds have 500 different words for wind.
He is full of anticipation:
Let's start communicating with animals. I think it'll be great, we're making it happen.
Regarding concerns about AI potentially replacing human labor, Draper maintains an optimistic attitude. He believes humans will adapt and find new work forms to enhance productivity, and might even achieve integration with AI by editing embryos or connecting brains to the internet.
In summary, Draper's predictions about Bitcoin replacing the US dollar, and how AI and gene technology will reshape the world, may sound futuristic and even slightly exaggerated, but they touch on the current financial system's trust crisis, the disruptive power of technological progress, and deep reflections on humanity's future path. In an era of rapid technological iteration and unpredictable global economic landscapes, perhaps as Draper suggests, people fifty years from now might look back and see us as "poor souls" trapped on Earth, dependent on phones for knowledge.
I think for people who are still alive 50 years from now... they'll look back and say, 'Oh my God, those poor people, they were stuck on Earth, just Earth... they had to ask their phones for knowledge instead of having their brains predict the need for knowledge.'
