Venture Capitalist Says Bitcoin Will Soon Be Used For Everyday Purchases

Tim Draper, DFJ, at Venture Summit Content during Web Summit 2017 at Convento De Beato in Lisbon.
6 November 2017; Tim Draper, DFJ, at Venture Summit Content during Web Summit 2017 at Convento De Beato in Lisbon. (Photo: Diarmuid Greene/Web Summit via Sportsfile)

Venture capitalist Tim Draper is known for making headlines with his out of the box thinking and bold predictions. Now, he makes another bold claim for the near future: Starbucks purchases paid in Bitcoin.

In a recent podcast interview on the NBC Bay Area's "Sand Hill Road," The 60-year-old investor spoke at length about the online cryptocurrency, saying it will bring major changes in society, far bigger than what people commonly imagine.

One of those changes, he predicts, is that by 2022 -- roughly three years from now -- bitcoin will be used routinely to purchase everyday things like a tall order of Starbucks' latte.

In fact, Draper believes that bitcoin usage will be so common by that time, traditional paper bills and coins will look "laughably" outdated. He says bitcoin or other kinds cryptocurrency will effectively replace traditional currency and will be used increasingly when paying bills and making purchases.

The big question related to Draper's prediction, however, lies in the fact that currently, one bitcoin equals to more than $3,800 dollars. With a tall latte costing only $2.95 (according to Fast Food Menu Prices), the idea of paying using bitcoin might sound absurd or ridiculous.

Draper, however, simply said, "is that a problem?"

Draper explained that with people buying and selling bitcoin and also using the cryptocurrency to buy and sell services, it will keep spreading and increase in market value. And when it's market value increases along with its usage, businesses will soon find solutions for "problems" such as the one posted above.

Draper Predictions

The venture capitalist previously predicted that by 2017, the bitcoin would surpass $10,000 in value. While the bitcoin's current value is lower than $4,000, it did surpass $10,000 in 2017 to reach $13,800 on December 22, 2017. Indeed, Draper was right.

Draper continues to hold on to his hopes regarding the bitcoin. Despite having a low value as of now, Draper believes that the bitcoin would reach a whopping $250,000 value by 2022.

If it does reach that value, perhaps it would be better for bitcoin owners to buy their own Starbucks franchise than get a tall Frappuccino. That way, they'd have all the Starbucks coffee they want while enjoying their investment returns over a long period of time.

Heroes

The senior-aged investor believes entrepreneurs such as Mark Zuckerberg, Elon Musk, Jeff Bezos, and even his personal friend Elizabeth Holmes all deserve to be called "heroes." He said these people "made the world better" by taking risks and sacrificing parts of their lives to achieve what they achieved.

Perhaps, it's high time bitcoin users take risks as well -- to try and buy coffee at the nearby Starbucks.

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