Episode 24: Crypto, Bitcoin, Elon Musk, Inflation, China & the US, Women…Tim Draper Interviewed by Joanne Z. Tan of 10 Plus Brand EPISODE 24 BY Joanne Z. Tan, 10 Plus Brand June 4, 2021

Out of 60 questions, we only had time for 34. But Tim said that if there are enough sharing by the audience, he will answer the remaining 24 questions.  PLEASE SHARE!

Here are the 34 questions Joanne Z. Tan asked Tim and he answered:

  1. 1. As one of the earliest investors in digital currency, after paying  $19 MM for Bitcoin in 2014, how would you describe Bitcoin’s growth journey so far? Would you say that in 2014 Bitcoin was an “infant”? And now in 2021, a “teenager”? If so, as a 6th grader or a 10th grader?
  2. 2. How “mature” is Bitcoin and crypto currency? How many years before Bitcoin and crypto as a whole reach “maturity”? How long will it take for crypto assets (currency and block chain) to permeate the small business markets?
  3. 3. Elon Musk bought more than one billion worth of Bitcoins for Tesla in February 2021, then he voiced the issue about unsustainable use of energy for mining Bitcoin, which is more than all other types of crypto coins (I don’t want to compare carbon footprints of Bitcoin’s with Fiat’s and traditional banking institutions’, to keep it “orange to orange”.) Would you agree that Bitcoin is indeed a lot more energy consuming than Ether, Dogecoin, and all other altcoins and meme coins out there?
  4. 4. About Elon Musk’s support for Dogecoin: Unlike Bitcoin that has limited quantity, Dogecoin has no limit thus lacking the “scarcity” element as one of the intrinsic values. Do you think scarcity, albeit man-made, is important to crypto?
  5. 5. Is volatility, as shown in the last few weeks of crypto’s roller coastering ride, an inherent trait of crypto?
  6. 6. Is there a correlation between stock market volatility and crypto currencies’ volatility?
  7. 7. In addition to the element of scarcity, what are other intrinsic values associated with crypto? Is traceability, (thanks to blockchain technology) that enables transparency of the source and all prior ownership, another unique value proposition that crypto has that fiat does not?
  8. 8. Now adding to scarcity and traceability, smart contracts can be added to crypto tokens such as Ether and the new kid on the block, ICT (Internet Computer Token) for various apps, would that be an indispensable or merely supplemental character for crypto?
  9. 9. Do you think smart contracts make crypto tokens more valuable?
  10. 10. As a tree-hugging environmentalist and an extremely concerned advocate for sustainability, I do agree with Elon Musk, and I would like to see adding the 4th element to crypto’s unique value proposition: sustainability. What do you think?
  11. 11. How would you describe crypto? Is it a currency? Is it a commodity? Is it a type of security? Is it all of the above, depending what utility is imbued into each particular crypto?
  12. 12. Do you believe Bitcoin is the “digital gold”?  If yes, will it rival and even surpass gold?
  13. 13. About inflation. Technological innovation is usually a force to counter inflation.  What is your assessment of the likelihood of PROLONGED inflation in the US in the next couple of years or even beyond? And Globally too?
  14. 14. Is crypto a safe haven for protecting cash from devaluation caused by inflation? If yes, why, if no, why?
  15. 15. I can see the value of using dollar-backed crypto in countries where inflation is out of control, like in Venezuela – folks can bypass the banks and get their money stabilized by crypto. But for Americans, what is the use of having dollar-backed crypto?
  16. 16. If traceability, transparency is one of the cornerstones for crypto’s intrinsic value, privacy is at odds with transparency.  But some tokens are offering privacy protection, what do you think of that?
  17. 17. What do you think of the many varieties of crypto coins, Meme coins, even “shit coins” out there?
  18. 18. Peter Thiel was quoted saying in January 2021 that “Crypto is a secret financial weapon of the Chinese government”, then he was in the news issuing his own token and even creating his own exchange, – will you be issuing a Draper Coin and even having your own exchange too?
  19. 19. Is it a reasonable prediction that after the crypto market as a whole will flush out all the “junk” coins and unsophisticated speculators, perhaps half a dozen “finalists” coins will be left on the crypto market?  Will that lead to some level of stabilization?
  20. 20. From an average Joe investor’s perspective, is the best crypto coin yet to come, since technology is evolving, and more smart contracts are being created for more apps, and more sustainable ways of mining coins will be adopted?
  21. 21. In addition to all 4 “cornerstones” for crypto I talked about above, do you believe that crypto must be in circulation, must be used in transactions, in order to become viable and competitive with fiat and other traditional currencies?
  22. 22. If yes, what is preventing crypto from being used and circulated more widely?
  23. 23. Would you agree that even without sufficient circulation, crypto is still a store of value, like land or diamond?
  24. 24. You predicted that Bitcoin would reach $220,000 – $250,000 in 2023, what is your basis for such prediction?
  25. 25. You said that you will eat a raw egg if Bitcoin does not reach $250,000 in 2023, – I’m willing to eat a sour lemon on my show (without the peel) if it does, – can we make a deal? Do you dare to eat a raw egg on my show, for the fun of it?
  26. 26. The irrevocability of crypto transactions seems like a double edged sword. To err is human, everyone makes typos and mistakes, and if someone types in an amount with two zeros more than the actual amount, mistakenly sending $10,000 when only $100 is intended, there is no way to reverse that mistake.  Do you foresee any remedies?
  27. 27. Any other “black swan” for crypto, in your opinion?
  28. 28. Who will be the biggest winners of crypto? Early investors?
  29. 29. Who will be the biggest losers?
  30. 30. Do you believe that crypto has the potential to replace traditional currencies including fiat, as an independent currency?
  31. 31. Traditional currencies and fiat have existed without crypto, do you think crypto can exist without fiat?
  32. 32. What kind of relationship crypto now has with fiat? Interdependent? Co-dependent? Symbiosis (you scratch my back and I scratch yours)?
  33. 33. Do you think the US government will allow crypto to co-exist with fiat?
  34. 34. Do you think the government needs to regulate crypto, as the SEC regulates securities?
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