Bitcoin May Be Worth an “Infinite” Amount Against the US Dollar: Tim Draper Predicts

In a recent X post on May 1, Tim Draper, known for his staunch Bitcoin belief, sounded the alarm on the United States dollar’s stability. He suggested that the fiat currency is losing global credibility and Bitcoin would grow exponentially against it.

Meanwhile, the comment follows a rebound in the cryptocurrency market, as Bitcoin has continued to gain traction over the past week. Despite growing geopolitical uncertainties, the cryptocurrency’s firstborn has regained momentum, including the ongoing trade war between the US and China.

Bitcoin to Outperform the US Dollar

Venture capitalist Draper warned of a potential U.S. dollar collapse and Bitcoin’s rise to relevance. Drawing precedence from the South’s Confederate dollar crash, he suggested that the hyperinflation during the Civil War could repeat, infinitely boosting Bitcoin’s value against the US dollar.

For perspective, during the 1861 Civil War, the South’s Confederate dollar plummeted from a 1:1 exchange rate with the USD to over 10 million:1. With the U.S. Dollar Index currently on an 8% decline this year, marking its worst yearly start in over four decades, Draper believes “Bitcoin might continue to rise against the asset.”

He argues that escalating geopolitical tensions and policy uncertainties under the Trump administration could erode global faith in the dollar, potentially leading to hyperinflation. Meanwhile, Draper’s argument hinges on Bitcoin’s fixed supply and decentralized nature as a safeguard against such financial collapse.

Bitcoin Outshines Gold as a Hedge Against Geopolitical Tensions

Furthermore, Draper dismisses gold as a viable hedge in today’s volatile economic landscape, positioning Bitcoin as the superior alternative. He argues that gold has practical challenges like storage, transportation, and utility.

However, Bitcoin offers open, transparent record-keeping and ease of digital storage. Meanwhile, accompanied by a comparison chart, the billionaire investor highlighted the apex cryptocurrency’s performance over gold.

According to the chart, between April 23 and April 30 this year, BTC has reigned superior over gold, surging 4% while gold retraced over 2%, further expanding his point. Moreover, Draper emphasizes the importance of individuals storing BTC, as the government is already stacking the premier asset as a strategic reserve.

Additionally, he noted that having some Bitcoin stored away could help families survive for six months, regardless of economic uncertainty or even if hyperinflation occurs.

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