Episode 39: Joanne Z. Tan‘s 2nd interview of Tim Draper on why Bitcoin will replace US Dollars in 30 years, what SEC and IRS should do with it__Interviews of Notables & Influencers
Why Tim Draper thinks Bitcoin is immune to inflation, power outages, hacking, and will replace fiat in 20 years - 2nd interview.
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The following are the summaries of questions Joanne Z. Tan asked Tim Draper during this one-hour interview on Sept. 23, 2021:
Crypto and Bitcoin fluctuated wildly in the last 4 months after our first interview. ... Other than China’s cracking down on Bitcoin and crypto, do you see any SYSTEMIC flaws in the crypto’s trading mechanism that have caused the wild fluctuation? Examples: Yesterday’s 90% drop of Bitcoin on Pyth was caused by computer botching basic math, the day before, the “blackout” at Solana, and the use of robot traders in high frequency crypto trading… What are your thoughts about these systemic flaws, or phenomena, or “growing pain”?
It seems that Bitcoin holders are primarily in two large camps: first, highly educated, intelligent and financially secure; second, herd mentality blind followers, some of whom are gamblers. Is that another contributing factor for its extreme volatility since there are far more blind followers than seasoned investors? If so, what can be done about it?
Is the lack of circulation and liquidity another reason for its volatility?
What caused the malfunction of El Salvador's launch of Bitcoin?
Ray Dalio recently said that the value of Bitcoin is “imbued” rather than “intrinsic”. Gold’s value is “intrinsic” according to him; the “imbued” value of Bitcoin, he cited, was at least based on the impressive fact that it has never been hacked. He didn’t mention that Bitcoin has a limited edition capped at 21 million coins. What do you think of his characterization?
Has the definition of “money” changed in any way with the birth and growth of Bitcoin? Does Bitcoin-ownership vs gold-ownership give Bitcoin owners more responsibility, participation, and other new elements of ownership?
Ayn Rand brand of libertarian capitalism, in my opinion, was based on the dated view that the world’s resources are almost limitless, an idealized understanding of a limitless potential of capitalism. Now, living with global warming, and the realization that first, resources are limited, and second, the window of opportunities is rapidly closing; actions, NOW, by NATIONAL governments are truly needed (in addition to private actions), to reverse climate change. My question is: Could Bitcoin undermine national governments’ control of central banking and economic policies, particularly related to governmental spending on sustainable industries?
Is there another way to link the usage of crypto directly with sustainability industries?
In China a couple of months ago, a great flood happened in a large city, there was no power, no internet. People who were so used to digital payment found themselves needing paper cash for everything. What do you think of its implication to Bitcoin’s use and circulation when there is no power?
Assuming that you do NOT prefer to live in a country without governments and borders, what is the “right place” for bitcoin to fit in? Co-exist with fiat? If the value of Bitcoin is priced and based on the value of fiat, what makes Bitcoin immune to inflation?
You said in the last interview with me that China’s government-issued digital wallet is a threat to Bitcoin IF their digital wallet is accepted outside China, please first explain, and then suggest what can be done about it.
Do you think technology has borders?
Is crypto a threat to the US government's national security?
Regulatory scrutiny is being ratcheted up by an SEC Commission chair who says he believes it’s better to be proactive on digital currencies than to react following a crisis. Michael Hsu, the acting chief of the Office of the Comptroller of the Currency, argued Tuesday that cryptocurrencies and decentralized finance may be evolving into threats to the financial system in much the same way certain derivatives brought near collapse in 2008. 3 questions:
Does that mean that Bitcoin and other cryptos are more likely to be treated by the government as a security rather than currency?
In the last interview, you said that Bitcoin is more like a currency, have you changed your mind?
Do you reserve tax payment for all your Bitcoin capital gain, since 2014, if and when you sell some portion of it, or just use some of it for purchasing goods and services?
Taxes and regulations ... do you think being taxed and regulated will make Bitcoin lose some of its “incorruptibility”, “transferability”, and “uninflatability”?
What do you foresee as the worst possible scenario to Bitcoin, other than a solar flare that wipes out all digital records and civilization based on electric power on Earth?
What do you foresee as the best possible outcome of Bitcoin? How many decades or years will it take us to get there?
What do you think about the corporate monopolies such as Google, Facebook, Apple, Microsoft, Amazon...becoming more powerful than the government in certain aspects?
I ask everyone in my interview this question: What does the “Tim Draper Brand” stand for?