Venture capitalist Tim Draper, founder and managing director of Draper & Associates, on Monday said that Bitcoin (CRYPTO: BTC) is “a hedge against all of bad governance.”
Draper told CNBC that “Bitcoin is your alternative that allows you to deal with the major changes that are happening in government policies over time.”
Draper, an early investor in companies including Tesla, SpaceX, Skype, Coinbase and Robinhood, has long been one of Bitcoin's most vocal advocates.
He reiterated his view that government intervention, regardless of political party, erodes free markets.
"Government spending just keeps going up. It doesn't matter whether it's Republican or Democrat in there," he said.
He contrasted Bitcoin with traditional stores of value.
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"Unless you want to hold gold, which is like holding onto shells or…being prehistoric in your thinking," Draper noted, underscoring his belief that Bitcoin offers a modern alternative to fiat currencies and commodities.
Draper also argued that Bitcoin's dominance within the broader cryptocurrency market is strengthening.
"With the first boom, they had 40 percent market share. With the next boom, they had 50 percent market share. And now market share is running around 61 percent, 62 percent," he said.
Why It Matters: According to Draper, Bitcoin's growing network effect mirrors how Microsoft became the dominant computing platform.
"All of these smaller cryptocurrencies are experimenting and doing interesting things, and all the great engineers are porting those to Bitcoin," he said. "There is a gravitational pull toward Bitcoin."
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