Bloomberg: Bitcoin is smart bet, Napster comparisons, Draper believes Bitcoin will survive, likens to internet
Napster comparisons to bitcoin, Draper instead compares it to the internet. Drapers has some bitcoin, and investments in a number of bitcoin companies
Includes manning a bitcoin atm
A lot less volatile than the currency in Argentina. Bitcoin will “feel stable”
He has Draper coin at draper university
April 15 (Bloomberg) — Draper Fisher Jurvetson Founding Partner Tim Draper discusses his tech investment ideas on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)
Bloomberg autogenerated transcript
I want to ask you, which of the areas in technology right now are you most in trade about from an investment perspective?
I think it is bitcoin.
I think it really has the potential, it and other virtual currencies have the potential to transform the world ready much the way the internet did way back when.
I have heard that before.
It is a way of all finance, all commerce everything can be transformed.
It is like one abstraction past where we are today.
It used to be we trade shells for services and then it moved to gold for services.
Then it was a note that says we will pay you gold for services.
Do you think it is bitcoin in the current form as a currency, or is it the technology behind bitcoin that will eventually survive?
It turns out in any industry there is always some movement and always a possibility there are other types of coins that become more prevalent.
Most of the entrepreneurs, boost companies, my son’s boost incubator, they are all building the infrastructure around bitcoin.
The reason i ask the question, they have gotten so much negative publicity, you cannot help but make the comparison.
Napster doing a pretty great thing when it started out.
It got saddled with a ton of legal lawsuits and threats of people going to jail.
Kids were downloading and sharing music files and parents for getting hit with lawsuits.
That could potentially bankrupt them.
Consequently the industry shifted away from that.
You look at bitcoin and the association with the road and do — silk road and the extreme libertarian groups.
I only ask, with it going — will bitcoin be able to survive all of that?
I think it will.
The internet itself has that weird baggage around it.
There was pornography going across on the internet and issues of security like we talked about earlier.
There were many issues as the internet was getting built.
As we got more and more comfortable with it, it became a bigger and bigger part of our life.
I think the same thing will happen with bitcoin.
How much are you and your son and best it right now?
I have some bitcoin and investments in the number of bitcoin companies.
I think in general, and they are trying all sorts of different things.
One in the insurance company, using bitcoin to buy things off of the web, anything you need.
One of them is manning bitcoin atm.
Like the only reason i ask is you, mark andreessen, fred wilson, a number of people have touted this and saying this is great, but then when bloomberg investigated the total number of dollars being put to work here, it came up with 110 million.
In the scheme of things, it seems pretty small.
The total value is about 7 billion or 8 billion.
A good, successful business.
Is the volatility ever going to change?
I think eventually it will find its place.
It is a lot less full of toll than the currency and argentina.
That is an interesting point.
If you are someone living in a country that is dealing with crazy fluctuations in your own currency vomit and then something like bitcoin — own currency volatility then something like bitcoin will look more stable.
You have the u.s. dollar.
You do not have to worry about a 30% price fluctuation and the span of a week or two.
That is true.
I think it will bounce around for a while.
It has been somewhat stable.
For quite a while now.
And iceland they basically a few weeks back that a massive drop.
They said here we all go.
The government has said you can use it but you cannot use it outside the country of iceland.
How is it doing?
It has potential.
Any limitation like cannot use it outside iceland creates a little bit of a limitation on how fake it can be.
Not necessarily going to take over the bitcoin space.
A lot of variations out there.
Tim draper, venture capitalists taking with me.
We will talk more about tech valuations and his plan for california.
Can they get its economy back on track?
I will be right back with that.