One of the first investors in Bitcoin, venture capitalist Tim Draper, says that the US dollar is currently in very bad shape — the worst start to the year in 40 years. He compares it to the times of the Civil War when Confederate money lost all value due to hyperinflation.
Draper believes that if tensions rise in the world — for example, wars or economic crises — people will start to trust the dollar less. And when trust in the dollar falls, investors look for "safe havens" — assets that are not dependent on government policy or the printing press.
Bitcoin, in Draper's opinion, could become just such an alternative. He says that if hyperinflation occurs, it is good to have enough Bitcoins to provide for yourself and your family for at least six months.
If his words are heard by large investors or governments, the demand for BTC could sharply increase. And demand, as you know, pushes the price up. So let's keep an eye on geopolitics — it could unexpectedly affect your crypto wallet.
