Venture capitalist and founding partner of Draper Associates, Tim Draper, stated that altcoins could ultimately help Bitcoin get better by serving as 'testing grounds' for upgrades.
In an interview on Monday, Draper stated that there will be 'many other cryptocurrencies' created over time, which will help increase Bitcoin's dominance.
"Good competition is good for the world, but considering the percentage of all cryptocurrencies, Bitcoin held 40% market share in the first boom, 50% market share in the next boom, and currently the market share is fluctuating around 61-62%," he said.
He also added that over time, 'the dominant provider will build the strongest network'. This leads developers to program for the 'dominant provider'.
Microsoft is the 'Bitcoin of Web2'
According to Draper, a similar situation occurred with Microsoft, as most developers built on this platform when it first started. However, some applications were created elsewhere and eventually migrated to Microsoft.
Microsoft is considered one of the world's leading technology giants, with the Windows operating system holding more than 71% market share.
"Well, the same thing is happening with Bitcoin. All these smaller cryptocurrencies are experimenting and doing interesting things. All the good engineers are transferring those ideas to Bitcoin, so there is a pull towards Bitcoin. Other coins will emerge but only as temporary phenomena, but I think overall we are in a major trend towards Bitcoin."
However, data from Electric Capital now shows a different picture. Their latest developer report estimates that only 2,583 developers are working on Bitcoin — just a small fraction compared to the total number of developers on the EVM platform (12,931) and Ethereum (9,094).
Draper: Bitcoin is a hedge against inefficient government spending
Draper also reiterated his view that Bitcoin is a hedge in the context of poor governance and uncontrolled government spending.
He noted that government spending has become 'out of control', with the ratio of spending to gross domestic product rising sharply 'over the past 100 years' and showing no signs of 'cooling down'.
The U.S. national debt continues to rise annually, with estimates from the U.S. Treasury showing that debt has increased from $395 billion in 1924 to over $37.2 trillion by 2025.
"The only way to hedge against such government spending is Bitcoin, unless you want to hold gold. This is like holding seashells. It's like prehistoric thinking about the economy. Bitcoin is the alternative, allowing you to adapt to the significant changes happening in government policy over time," Draper said.
A price prediction of $250,000 remains feasible
Draper once predicted that Bitcoin would reach $250,000 and eventually make the U.S. dollar disappear, although he admitted that this has not yet come true.
"I predicted Bitcoin would reach $250,000 a long time ago. It turns out I was not right yet, but we have come halfway. That is really exciting," he said.
Draper previously predicted Bitcoin would reach $10,000, and that happened in 2017. He said in 2023 that he made a new prediction of only $250,000 by the end of 2022 because he felt pressured to try again after accurately guessing the first time.
Bitcoin reached a new all-time high of $124,450 on August 14, but has since fallen by 11% and is currently trading around $109,144.
