👉 How Much Bitcoin Do You Really Need? | Tim Draper. Part I

Thanks for having me, Rita. So, let's dive into questions about crypto because a lot of people out there are impatiently waiting for your predictions on Bitcoin.

Well, I just did an AI search and it said that it would take two years. I think I'd stick by my 2025 prediction. There are so many things moving in this direction. First of all, if you run a treasury and you don't have any Bitcoin, your dollars have dropped against Bitcoin. They've dropped to in inflation at a pretty fast clip recently. So, you think you're holding a treasury of dollars. They're worth less because of inflation. They're also worth a lot less because Bitcoin is worth a lot more relative to them. So $1 7 years ago bought 15,000 satoshis. Today it buys 950 satoshis and in 2 years it'll buy 300 satoshis. So if there's a currency like that and you're a treasury and you're missing it, it's a huge mistake. So a corporate treasury, it's irresponsible not to have Bitcoin. Another thing is that when Silicon Valley Bank went under, I got 15 calls from entrepreneurs saying, 'All our money's in Silicon Valley Bank and we're not going to make payroll.' And so I had to offer to bail them out. I didn't actually have to bail them out because the US government did. So now I tell these companies, 'You should have some of your money in a big bank.' They said, 'Of course, some money in a small bank.' And they say, 'Why?' And I say because the US government can bail out a small bank. I don't think they can bail out JP Morgan and then some in Bitcoin so that you can pay at least two months payroll in Bitcoin if your bank goes out of business. Five years ago they thought I was nuts. Last year they scoffed at me. Today they're kind of going, 'Oh, I better own some.' And some of the very innovative public companies are getting rid of their dollars and they're only buying Bitcoin and people are respecting that. The marketplace is respecting that.

If you're a corporate, you're actually personally responsible for payroll. If you're the CEO or the board of a big company, you're personally responsible for at least two weeks, maybe four weeks of payroll. So, you better have some Bitcoin because if your bank goes under, it's up to you. And then, if you're a citizen, there's so many reasons to own Bitcoin. One would be if you're ever in a tough spot, you have to be in another country, Bitcoin's accepted everywhere. The other is if it keeps going the way it's going, you're not even supporting your family. I tell families, I used to say, 'Hey, buy one or two percent of your net worth and put it into Bitcoin. Just do it.' And now I'm saying you're not handling your family finances responsibly if you don't have about six months worth of Bitcoin to keep them alive. And then some governments are even making Bitcoin part of their national treasury. And it makes perfect sense because dollars are losing value and so are all these other currency of the world, all the fiat currencies.

Stable coins are a great bridge to Bitcoin. They are an extraordinary construct that allows people to use fiat currencies and move them the way digital currencies are moved. It's good because it allows people to start realizing that money should move faster because if you move money faster, everybody gets richer. Just basically that's the way it's always worked. From shells to gold, gold to the promise of gold. Anytime you create more liquidity and more speed of transaction, the world gets richer. So, stable coins are good for that. What they are not recognizing is that stable coins continue to add more inflation to fiat currencies and they are still fiat currencies. They're still tied to banks and governments. They've been the trusted third party. Well, it turns out Bitcoin has figured out a more trusted third party than the banks and the governments, and that is written into software. It's like written into stone. It is solid, solid, solid. These smart contracts are immutable.