Tim Draper, a partner at Draper Associates, a venture capital firm co-founded by Draper, pointed out that altcoins can serve as a testing ground for upgrades to Bitcoin, ultimately enhancing Bitcoin's performance.
In a CNBC interview, Draper stated that more cryptocurrencies will emerge in the future, which will promote Bitcoin's (BTC) dominance.
He believes that competition is beneficial to the world, and Bitcoin's market share is gradually increasing from an initial 40% to the current 62%.
Draper also mentioned that, like Microsoft, most developers initially chose to develop on its platform, and through technology transfer, Microsoft's Windows system captured over 71% of the market share.
Although the number of Bitcoin developers is less than that of the EVM stack and Ethereum, Draper believes that many small cryptocurrencies are still experimenting, which will eventually shift development resources towards Bitcoin.
Draper emphasized that Bitcoin can serve as a hedge against excessive government spending and misgovernance. He pointed out that the proportion of government spending to GDP has rapidly increased over the past century.
He noted that the U.S. national debt has significantly increased from $395 billion in 1924 to $37.2 trillion in 2025. He views Bitcoin as a modern alternative to address such fiscal changes.
Although Draper predicts that Bitcoin will reach $250,000, potentially ending the era of the dollar, he acknowledges that his predictions have not yet materialized.
Bitcoin reached a new high of $124,450 on August 14, but has since fallen back to around $109,144.
