American venture capital investor Tim Draper recently commented on Bitcoin, suggesting that Millennials should invest in Bitcoin if they want to secure their financial future.
Draper expressed this in an interview with Liz Claman. During the interview, published on January 22, Draper discussed people and topics such as Elon Musk, Space X and Bitcoin.
Draper also accused the banking system of “throwing” the millennials into debt with hundreds of thousands of dollars. Draper is an American venture capital investor as well as founder of various companies. Among his most famous investments are Baidu, Hotmail, Skype, Tesla, Coinbase.
According to Draper, millennials often only know about one system from the previous generation
The biggest problem, according to Draper, is that the millennials are being told that the system of previous generations will not work for current generations. In this context, he compares today’s economy to an antiquated vehicle and calls the banks an “Oldsmobile“.
Saving money for retirement is almost impossible, according to Draper; after all, you are born into a world that is already massively in debt. Furthermore, today’s salaries are too low in relation to opposing expenditures to pay off debts or accumulate assets.
Millennials are more open to crypto-currencies than other generations
As we recently reported, Millennials are much more sensitive to digital currencies than other generations, which is fundamentally in line with Draper’s argument. However, a study by Fundstrat predicted that, in the near future, Millennials would likely become the richest generation in history and that their investment behavior will differ from that of their parents. More information on the general investment behavior of Millennials and further information on the study is summarized here.
In addition to Draper’s opinion, however, there is also repeated skepticism about Bitcoin. Already in 2018, the American economist Nouriel Roubini spoke about the crypto-currency and called it “the mother of all scams“. He confirmed this statement only recently at an event in Davos.
Skepticism is partly due to the high volatility
The high price fluctuations of Bitcoin are another reason why many experts are skeptical about Bitcoin. In the last six months alone, the currency has recorded an average volatility of 63%. Draper also says in the interview that he does not believe that the future of currencies is tied to geographical boundaries, but rather that they are open and bring more freedom.