Tim Draper warns of the imminent collapse of the US dollar as Bitcoin accelerates towards total transaction control.
Tim Draper declares that the US dollar will be extinct – Vitocoin set that controls transactions
Venture capitalist Tim Draper issued a harsh warning on social media platform X on May 31st about the future of Fiat currency, focusing on growing debate within the Bitcoin community. Draper, known for his long-standing support for cryptocurrency, said the US dollar quickly lost its value and predicted a major change in retail behavior. His comments followed a post from Swan Bitcoin and discussed the new disparities between BTCs as value stores and exchange media. The Draper wrote:
The dollar is extinct. People will hurry up using it because it loses value. Retailers will soon prefer Bitcoin. And when they do, that’s when people start to spend Bitcoin.
The May 30 Swan Bitcoin thread, referring to Jack Dorsey’s recent comments, questioning the long-term relevance of BTC when it is limited to the role of the Value Store, and resumed a central debate within the community. By comparing the role of BTC in the 19th century with the role of gold, Michael Saylor, suggests working on the topic in Bitcoin 2025 and redefine the modern concept of cash. Analyst Lynne Alden noted that Bitcoin serves as both a value store and a medium of exchange, but that adoption should prioritize the former. Lightspark CEO David Marcus pointed to the current use of cryptocurrency in real-time payments.
Earlier this month, Draper pulled out parallel to the Confederate dollar. This value collapsed from 1:1 to over 10 million people during the Civil War, drawing on the current risks facing US currencies. He said the US dollar index is off to a worst start in 40 years, warning that escalating geopolitical tensions could further erode trust in the dollar. He said its transparent ledger and ease of storage is beneficial over gold, and that he said it is difficult to store, transport and use in transactions, Draper said.
Bitcoin may be worth an infinite amount of US dollars.
He pointed out that some governments already include Bitcoin in their reserves, and advised individuals to hold enough to cover six months to a year in the case of whole body collapse or hyperinflation.