Billionaire venture capitalist Tim Draper, a long-time Bitcoin advocate, believes that one day retailers will only accept bitcoin as a payment.
“There will be a moment when all the retailers say ‘I accept bitcoin’ and then there will be a moment when retailers will say ‘I only accept bitcoin,” Draper said on Bloomberg Television.
Tim Draper’s support for bitcoin goes far beyond words. In 2014, he made headlines by spending $19 million to purchase 30,000 bitcoins seized from the shutdown of the Silk Road marketplace.
Today, those coins are valued at roughly $3.5 billion. Draper has also backed major crypto firms, like Coinbase and Robinhood Markets, cementing his reputation as one of the sector’s most influential investors.
In the interview with Bloomberg, Draper acknowledged that for now, bitcoin is primarily being held, not spent — a trend fueled by its consistent value growth, which makes it a favored store of value and a hedge against inflation.
But Draper sees change on the horizon. He said that eventually, retailers will start accepting bitcoin as a primary payment method.
Tim Draper’s new fundraising round
Draper is also raising fresh capital for his venture firm, Draper Associates.
According to a Tuesday SEC filing, the firm has secured $200 million for its eighth fund, with its website hinting at the official launch. Draper Associates, which manages $2 billion in assets, focuses heavily on crypto investments.
This latest fund follows the 2022 raise of nearly $124 million for Fund 7.
The timing coincides with a strong crypto market rally. The total cryptocurrency market recently surpassed $4 trillion for the first time, buoyed by congressional legislation regulating stablecoins and Bitcoin surging past $120,000 in recent months.
Draper, 67, began his venture capital career in 1985 with a $6 million loan and quickly became known for early investments in companies like Skype, Baidu, Tesla, SpaceX, and Robinhood.
Draper has predicted in the past that bitcoin could hit $250,000 — a forecast that, while not yet realized, is seeming more and more likely as Bitcoin sits above $113,000.