Tim Draper Predicts Bitcoin Could Reach "Infinite" Value Against USD if Confidence in Fiat Currency Continues to Decline, Warning of Financial System Collapse Risk.
On May 1st, Tim Draper – a famous venture investor known for early Bitcoin investments – made a controversial prediction on the social media platform X. He stated that if current monetary trends and geopolitical tensions continue to escalate, Bitcoin might ultimately have an "infinite" value when converted to USD.
Draper cited an example from the US Civil War, when the Confederate dollar – initially on par with USD – experienced hyperinflation, collapsing to an exchange rate of over 10 million to 1 by the war's end. As trust depleted, people rushed to hold USD.
Warning About Currency Risks and Bitcoin's New Role
Draper emphasized that the US Dollar Index is experiencing its worst start in four decades. Meanwhile, he believes that "Bitcoin will continue to maintain a transparent, public, and easily stored recording system", creating a contrast with traditional monetary systems losing trust.
This investor also did not hesitate to deny gold's role as a traditional value storage tool: "Forget gold. Gold is no longer on par with Bitcoin. It has many problems with storage and transportation." He noted that some countries have begun risk mitigation strategies by incorporating Bitcoin into national strategic reserves, as a countermeasure to potential currency collapse scenarios.
Draper offered a specific recommendation: "You should own enough Bitcoin to sustain life for yourself and your family for six months to a year. Or if hyperinflation occurs, that Bitcoin could last even longer."
Draper's prediction reflects the perspective of an increasingly growing group of investors and financial experts questioning the long-term sustainability of traditional monetary systems. Against a backdrop of high global public debt, escalating geopolitical tensions, and increasingly common unconventional monetary policies, decentralized assets like Bitcoin are attracting attention as a potential alternative.
However, many analysts point out that Bitcoin's high volatility remains a significant barrier to being a reliable hedging tool. The debate about whether Bitcoin is a speculative risk instrument or a genuine hedging asset continues, especially as its price has surpassed $90,000 in recent weeks.
In any case, Draper's comments have contributed to intensifying discussions about the future of currency, the role of digital assets, and shifts in global monetary policy in the digital era.
