Venture Investor Tim Draper Warns of Rapid USD Depreciation and Predicts Retailers Will Soon Prioritize Bitcoin in Transactions
Venture investor Tim Draper issued a sharp warning about the future of USD on May 31 on the X platform, participating in a heated debate in the Bitcoin community about the role of BTC. Draper, an early-known cryptocurrency supporter, said USD is rapidly losing value and predicted a major change in consumer behavior.
The statement was made after Swan Bitcoin posted a chain of discussions about the re-emerging debate around whether BTC should be a store of value or a payment medium. Draper wrote: "The dollar is going extinct. People will rush to spend it as it loses value. Retailers will soon prioritize Bitcoin. And when that happens, that's when people will start spending Bitcoin."
Swan Bitcoin's post on May 30 recalled Jack Dorsey's recent statement, questioning the long-term sustainability of BTC if it only serves as a store of value, reigniting the core debate in the crypto community. Michael Saylor, co-founder and Strategy Chairman, speaking at the Bitcoin 2025 conference, compared BTC's role to gold in the 19th century and believed it would "redefine the concept of cash in the modern era".
Comparison with Confederate Dollar during Civil War
Analyst Lyn Alden argued that Bitcoin could play a dual role – both as a store of value and a payment medium – but should prioritize the first role. Lightspark CEO David Marcus emphasized that Bitcoin is already being used in real-time payments.
Earlier this month, Draper compared the current USD to the Confederate dollar – which had a 1:1 exchange rate with USD but completely collapsed during the Civil War, depreciating to a 1:10,000,000 rate. He pointed out that the US Dollar Index is having its worst start in 40 years and warned that escalating geopolitical tensions could continue to erode confidence in USD.
Draper argued that the transparent ledger and easy storage make Bitcoin superior to gold – an asset he considers "difficult to store, transport, and use in transactions". He declared: "Bitcoin could have infinite value when converted to USD."
He also noted that some governments have started incorporating Bitcoin into national reserves and advised individuals to hold enough Bitcoin to spend for 6-12 months, in case of system collapse or hyperinflation. This perspective reflects a strong belief in Bitcoin's potential to completely replace the traditional monetary system in the near future.
