Tim Draper warns of the impending collapse of the US dollar as bitcoin accelerates towards full dominance in transactions.
Tim Draper states that the US dollar will become an endangered species—Bitcoin is ready to dominate transactions
Venture capitalist Tim Draper issued a stark warning about the future of fiat currency on the social media platform X on May 31, joining the growing debate within the bitcoin community. Draper, known for his long-standing support of cryptocurrency, stated that the US dollar is rapidly losing its value and predicted a significant shift in retail behavior. His comments followed a post from Swan Bitcoin discussing the ongoing divide between BTC as a store of value and a medium of exchange. Draper wrote:
The dollar is dying. People will rush to spend it as it loses value. Retailers will soon prefer bitcoin. And when that happens, people will start spending bitcoin.
A post by Swan Bitcoin from May 30 referenced a recent comment by Jack Dorsey questioning the long-term significance of $BTC if its role is limited to a store of value, reopening a central debate within the community. Co-founder and executive chairman of Strategy, Michael Saylor, raised this topic at Bitcoin 2025, comparing the role of $BTC to that of gold in the 19th century, suggesting that it will redefine the concept of cash in the modern era. Analyst Lyn Alden noted that while bitcoin functions as a store of value and a medium of exchange, its adoption should prioritize the former. Lightspark CEO David Marcus pointed out the current use of cryptocurrency in real payments.
At the beginning of this month, Draper drew a parallel between the Confederate dollar—whose value collapsed from 1:1 against the US dollar to more than 10 million to 1 during the Civil War—and the current risks facing the American currency. He noted that the US dollar index is experiencing its worst start in four decades and warned that escalating geopolitical tensions could further undermine confidence in the dollar. Arguing that its transparent registry and ease of storage provide advantages over gold, which he described as difficult to store, transport, and use in transactions, Draper said:
Bitcoin could be worth infinitely many US dollars.
He noted that some governments are already including bitcoin in their reserves and advised people to hold enough to cover six months to a year in case of systemic collapse or hyperinflation.
