Tim Draper predicts Bitcoin could reach infinite value in dollars

Venture capitalist Tim Draper shared a forecast on May 1 suggesting Bitcoin (CRYPTO:BTC) could eventually be worth an infinite amount of U.S. dollars if current monetary trends and geopolitical tensions persist.

Draper referenced the Confederate dollar’s collapse during the U.S. Civil War, when it hyperinflated from parity with the U.S. dollar to over 10 million to 1 by the war’s end.

He noted that the U.S. Dollar Index is experiencing its worst start to a year in four decades, signaling declining confidence in the currency.

“If geopolitical tensions escalate significantly, confidence in the dollar could decline further,” Draper said.

He contrasted Bitcoin’s transparent, decentralised ledger and ease of storage with gold’s challenges in storage and transportation.

“And forget gold. Gold doesn’t play in the same league as Bitcoin,” Draper stated.

He highlighted that some governments are already including Bitcoin in their strategic reserves as a hedge against currency instability.

“If the system breaks down you don’t want to be the one clamoring to withdraw cash from the bank or hoarding gold in your room,” Draper warned.

He advised individuals to have enough Bitcoin to hold you and your family over for six months to a year.

In the event of hyperinflation, Draper suggested Bitcoin could sustain value for much longer.

While Bitcoin’s volatility raises questions about its reliability as a hedge, its fixed supply and decentralised nature are seen by some as advantages during economic crises.

Draper’s remarks contribute to ongoing discussions about currency resilience and the role of digital assets amid evolving global monetary policies.

“Bitcoin might be worth an infinite amount of USD,” according to Draper, if fiat currencies continue to weaken.

At the time of reporting, the Bitcoin (BTC) price was $94,651.05.