Tim Draper: Expect Bitcoin to Be A Good Method to Store Value

Tim Draper
In past days the global stock investors all experienced a roller coaster.Except the crash of Chinese stock market,the Dow Jones index has fallen over 1,000 points.

When the stock market is falling,the investors begin to take aim at the safer assets they consider,including cash,gold and national debt. People often choose gold because they think it is the best method to store value.While some people feel that Bitcoin is a better safe-haven asset which will win gold some day.

Tim Draper,the originator of Draper Fisher Jurvetson,believed that Bitcoin will become an outstanding method to store value for investors.

Tim Draper said: If Bitcoin becomes mature,I wish people use it to avoid risk like gold when stock markets crash. Now Bitcoin has not enough applications,investors cannot invest it comfortably when they are out from stock markets.I expect the situation to change.

Tim Draper pointed out that currently Bitcoin is too speculative to store value.Its price must go up and then keep stable status not fluctuate violently if it is wanted to be an effective method to store value. But Bitcoin ecosystem has not reached such an extent.

According to the supply-demand relationship,Bitcoin price has a pressure because the miners will get more BTC. The miners will sell their BTC to pay for electric charge, the sell orders is over the demand of long-term investors and other users,which causes the Bitcoin price to fall.

Tim Draper added: I expect the situation to turn along with more and more Bitcoin applications in next six months

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