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Billionaire venture capitalist Tim Draper has stated that the rising adoption of Bitcoin, the cryptocurrency, could one day cause bank runs and erode confidence in traditional fiat currencies.
In a recent X post, the longstanding Bitcoin bull stressed how crucial it is to have the leading cryptocurrency as the world's financial system undergoes what he believes is a significant shift.
"I've said it before, and I'll say it again. It's irresponsible to not own bitcoin," Draper said.
The billionaire predicted that companies will start adopting Bitcoin payments in addition to traditional currencies before completely moving away from fiat.
"First they'll be like 'We accept bitcoin.' And then they'll be like, 'We only accept bitcoin,'" Draper predicted.
Draper further said this shift will make people doubt the value of traditional currencies, including the U.S. dollar. It may then lead to a large-scale withdrawal of funds from banks.
"And then people will not value dollars, fiat. And so there's going to be a run on the banks," he added.
The venture capital investor said this could be a game-changing moment that may transform the world's financial system. Meanwhile, those who don't adopt Bitcoin may be left behind.
"And so eventually the world is going to never be the same," Draper said. He added that those who are ready to prepare for a "seismic shift" will be ahead of people and companies that hold legacy currencies.
Draper's new comments echo his long-held views that Bitcoin has the potential to become a dominant currency that could replace fiat currencies in the future.
Tim Draper's $250,000 Bitcoin prediction
Tim Draper has made other bold predictions on Bitcoin this year.
In September, the billionaire repeated his long-held view of a $250,000 price for Bitcoin. He said the cryptocurrency could potentially hit the figure in about two years' time.
Draper has said that Bitcoin could rally toward that point due to the upcoming Bitcoin halving, which is slated to happen in 2028. The halving event is set to cut down the amount of newly minted Bitcoin miners receive for confirming blocks. It could potentially squeeze the cryptocurrency's supply.
Back in April, Draper made the prediction that Bitcoin could climb to $250,000 in just 18 months due to inflation of the U.S. dollar.
At the Bitcoin 2026 conference in Las Vegas in April, Draper recommended that companies set aside 5% to 15% of their treasury reserves in the cryptocurrency.