We had the honor of having venture capitalist Tim Draper in attendance at the Los Angeles Global Ventures Summit 2018. He shared with us information from his recent book, "The Start Up Hero" and he tells us how Bitcoin will be growing as a global currency, which he predicted, would reach $250k by 2022.
“I actually believe that cryptocurrency will probably by 2022, be bigger than theocracy, so this can be a really big sea change, and then politically, everything changes they've you know, governments has been able to sort of control you with the currency.”
Ahmed Shabana (ParkPine Capital Managing Partner) : "Can you talk about The Startup Hero Book and how this can apply to not only entrepreneurs in San Francisco, or the US, but globally? There are a lot of entrepreneurs around the world that can definitely take some advice from the book."
Tim Draper (Draper Associates) : "Well, this book was really a labor of love. What happened was, I started Draper University of heroes, the school for entrepreneurs. And I started to find that I was repeating myself as I was coaching these entrepreneurs. And I thought, well maybe I should put something together here for any entrepreneur who wants to go out, start something so they can get a sense of what their life is going to be like.
Because when you go out and start a business, you've got to be pretty sure you want to do it. The way the book is structured is tied to the pledge. We have a pledge at Draper University, it starts with I will promote freedom at all costs, do everything in my power to drive build, and pursue progress and change. And then it goes on. And then it says, I will fail and fail again, until I succeed, I'll explore the world with gusto and enthusiasm…
“I will promote freedom at all costs, I will do everything in my power to drive, build and pursue progress and change, I will fail and fail again, until I succeed. And I'll explore the world with gusto and enthusiasm…”
Each line of that pledge has stories attached to it and that's how the book begins. Fast forward to the last third of the book and you’ve gone this far and are sure that you really want to start a business. So I provide you with a plethora of tools to help you launch that business. I do everything from give you ideas for the business to telling you what you're going to have to go through. Finally, I share with you a couple of tests that we like to run through the grandmother tense, meaning, is this something your grandmother can easily grasp. Simply put, can you explain your business to your grandma? Next is the 16-year-old test, which has you examine the longevity of this product or service. In other words, is it going to be a groundswell starting with high school thinking because that's how all the greatest businesses start.
“Most of the great businesses started with people in high school thinking, wow, this is really right.”
There are a variety of other little tips. I've just run into so many entrepreneurs as a venture capitalist that I felt like I had enough to say and it was good.
I just wrote every word and I hope you guys all enjoy it!"
Ahmed Shabana: "Yeah, definitely."
"Can you tell us about the 2022 evaluation of Bitcoin for over quarter million dollars for one Bitcoin? What do you think, do you think it's going to happen immediately or it's like gradually as it becomes more adopted?"
Tim Draper: "I've been involved in Bitcoin for a long time and the thing that got me most excited about it was that you suddenly have a currency that is not tied to any political forms and in an independent current currency. This currency is globally decentralized, frictionless and can be can be used/pulled down anywhere."
"The thing that got me most excited about it was that you suddenly have a currency that is not tied to any political forms and in an independent current currency."
"It's just a matter of time before the engineers create enough uses so that we would rather be using Bitcoin than using dollars. The reasoning is that dollars and all the other currencies of the world are tied to a political force and their political currencies and then Bitcoin is independent of political force. So if I can spend Bitcoin, invest, do whatever you do with Bitcoin as easily as I can with dollars, then I'm going to choose which one do I want to use; and dollars, they decrease in value every year. On the other hand, Bitcoin they're only 21 million of them. So that generally increases in value over time.
Well, there are $84 trillion dollars worth of global political currency out in the world. And that $84 trillion dollars, I believe, will be slowly but surely chipped away. So I think there will be a major change in about three or four years with all of those engineers who have created all those pieces."
Ahmed Shabana: "Global political currency, could you explain a little bit more?"
Tim Draper: "It's Dollars and Nigerian naira, Pesos etc. it all adds up to $84 trillion dollars and today Bitcoin and all the other cryptocurrencies add up to about $200 million dollars, so it has a long way to go. I actually believe that cryptocurrency will probably by 2022, be bigger than theocracy, so this can be a really big sea change, and then politically, everything changes they've you know, governments has been able to sort of control you with the currency."