Venture capitalist Tim Draper said in an interview that Bitcoin’s importance in the downside that cryptocurrencies and traditional markets are experiencing has to do with its inflation-hedging properties.
“I’m still bullish on bitcoin because it’s a good hedge against inflation, and it’s going to diverge from tech stocks as speculators leave,” he said. “I believe tech stocks will continue to fall as long as interest rates continue to rise.”
Draper sees Bitcoin as a hedge against inflation, a property that only appreciates in the long term. In addition, he said, Bitcoin offers a safe haven against poor governance and excessive regulation.