This article is part of the experiences and memories of Tim Draper, the great investor and well-known digital currency figure, of his own language, which expresses his point of view about Bitcoin since he became acquainted with this great phenomenon in the digital world.
I guess it was 10 or 15 years ago that I realized the potential of a digital currency. I have been in the course of many of the ups and downs of Bitcoin, but today I am more confident that the bitcoin revolution is just only beginning!
In 2004, I learned from a wealthy Korean artisan, that people were willing to give real-world money to buy digital items such as weapons used in many online video games. One of those games was Lineage, which had a storm in Seoul. It made me think that a marvelous business would be behind virtual items in the future. Later I got to know Joel Yarmon with Bitcoin in 2011. He brought Peter Winsens and his company together with Coin ball to share his ideas.
Bitcoin at that time was a new currency that could be used to save value or pay anything, and was not just a game to buy advanced features. I quickly learned the basics of bitcoin, miners, wallets, and so on.
Reducing the number of bitcoins available for mining over time means that bitcoin prices increase with increasing the use and depletion of mined bitcoins. In fact, with Bitcoin’s expansion and increased use of it, it’s likely that it’s value will increase.
Coin lab was becoming an innovator and miner in Bitcoin. We were investing a bit. My son, Adam, founded an accelerator called Boost VC, which specialized in companies related to Bitcoin (and Blockchain). He was the first Investor of coinbase.
At that time, I asked Peter whether I could buy $ 250,000 in bitcoin. He bought some Bitcoins for $ 6 and saved them at MT.Gox, the largest exchange of that era. Peter also said that we would buy a high-speed mining chip from the Butterfly Labs to get even cheaper Bitcoins. Both of these efforts did not come about.
Initially, the sending of the ASIC chip was delayed. Butterfly Labs instead of sending Peter’s order, used it to mine bitcoins for their own. When the ASIC chips arrived at Peter’s, the bitcoin network difficulty was increased. On the other hand, the bitcoins that I had bought went down at the MT.Gox Stock Exchange.
An important thing happened with the collapse of the MT.Gox Exchange. Bitcoin prices dropped by only 20%, and the currency was traded in other exchanges.
I was still obsessed. I realized that the need for this new currency was so strong that a big robbery also prevented him from developing a new way to exchange, store, and transfer money. Since the financial crisis, people have lost confidence in the government and currencies (Fiat). I went to a number of bitcoin subcompetitors under Boost VC. As I discovered more and more applications, the unique opportunity was emerging.
It happened! I found another opportunity to get Bitcoin. The US Marshall Service Office had seized the Silk Road bitcoins as an online drug market, and seized 30,000 bitcoins. I saw this as an opportunity to regain my lost bitcoins.
The trading price for each Bitcoin was $ 618. Just in the last minute, I decided to offer a price higher than the market price. With the suggested amount of $ 632, I got all those bitcoins. After I suddenly regretted the buyer bidding for a price more than anyone would have liked, I thought how I could make the best use of this batch of coins.
I decided to use them to support the development of Bitcoin in the markets of developing countries that people do not trust in their own currency. Many people in these countries do not accept the bank. Banks in such countries lose their capital in people who do not have enough money to participate in valuable projects. The laws of banks are designed to protect low-income groups, but in fact prevent them from joining the economy, and these people are always among the weakest. Let’s not forget that billions of people in the world do not have a bank account.
Avish Bhama, one of Boost’s accelerating entrepreneurs with a company called Mirror, helped me achieve a good plan for expanding digital currency in developing countries.
The idea was to give the people of developing countries the right to invest in everything (even taking a position of sale against their national currency) using Bitcoin, which provided a path for traders.
Mirror later changed its business model. But companies like Bitpesa in Africa, Latin American Bipagus and South American coinhaku, which I later supported, are turning the world into a commercialized world.
Bitcoin’s Extreme Potential
I’m impressed by the capabilities of Blockchain and bitcoin.Bitcoin is a currency that is accepted everywhere without government intervention and intermediaries. A value-saving solution that does not require a guard to protect a room full of precious metals and artwork.
A stable currency that can be transferred automatically under a contract without interfering with the rules and regulations of accounting.
But there are plenty of other uses as well.The Bitcoin wallet can be used as a guarantee document in a contract to conclude, redistribute a property or transfer distributed payments, dividends, or shares.
Blockchains can carry out interceptions of money, data, inventory, contracts, and so on, and smart contracts can be designed in such a way as to predict the probabilities and automatically distribute the funds properly.
Companies can use the blockchain to automatically pay salaries, wages and benefits to their personnel, to provide their shareholders and creditors with the principle of accurately calculating their money and interest with automated accounting.
Blockchain can easily manage trilateral transfers and ultimately perform retail transactions without trust or credit cards. Insurance companies can use this technology to manage their claims and automated services. Real estate deposits and property documents can be relocated quickly and easily between the buyer and the seller.The authenticity of medicines and food is also endorsed and guaranteed by the Blockchain. The US government can manage social security, welfare, health insurance, employee jobs, people with disabilities, and all citizens and business certifications using Bitcoin and the Blockchain.
Blockchain is an extraordinary government employee with features such as honesty, uncorrupting and being just.
Change is about to happen
Many industries will have to face major changes to adapt to this new attitude in the future.
People need to learn that banks and trusted third parties will be replaced for centuries by computers that today monitor their assets on the Blockchain. Banking in the future will be simpler, safer and easier than relying on individuals to perform uniformly administrative tasks in brick and mortar buildings.
It’s good to point out that countries have come to terms with each other and everyone wants to win the Bitcoin economy. The smartest countries allow Bitcoin to develop and know that they need a flexible legislation to capture all the creativity, money and startups that work in this area.
The United States was aware that the Internet was not regulated and released, as all Internet entrepreneurs created domestic startups and the Internet-based economy flourished.
There are many similarities between Bitcoin and the Internet in 1994.
In 1994, the internet was only for those who were looking for hobby and hackers. I remember the first time I used the internet. The only thing I could do was to buy diamonds and try to penetrate the North American Aerospace Defense Command. There were very limited applications in those days.
It took years for the Internet to enter the mainstream, and when it did, the industry would come up. The long-term perspective of bitcoin is the world economy’s salvation.Bitcoin’s ability only depends on the initiative of entrepreneurs who are trying to set up this virtual economy.
Honestly, I believe that users’ societies should adopt laws in this area so that they may no longer need to regulate the various governments of the digital world.
I’ve been in bitcoin’s swoop over the years, and today I believe with certainty that the bitcoin revolution is only starting. This is where people who do not have a bank account in the world have a financial data account, democratized economic opportunities and an opportunity to re-evaluate the governance category. I think that this phenomenon changes everything from banks to financial systems related to health, democracy, and even governments.