Tim Draper has issued a warning about the looming downfall of the U.S. dollar, suggesting that Bitcoin is rapidly advancing toward becoming the primary medium for transactions.
Tim Draper Predicts U.S. Dollar’s Demise as Bitcoin Poised to Dominate Transactions
On May 31, venture capitalist Tim Draper shared a strong caution regarding the future of fiat currency through a post on the social media platform X, joining an ongoing conversation within the Bitcoin community. A longtime advocate for cryptocurrency, Draper claimed the U.S. dollar is quickly depreciating and forecasted a significant transformation in consumer spending habits. His remarks came in response to a Swan Bitcoin post highlighting the renewed debate over Bitcoin’s role as both a store of value and a medium of exchange.
The dollar is going extinct. People will rush to spend it as it loses value. Retailers will soon prefer bitcoin. And when they do, that’s when people will start spending bitcoin.
Draper stated:
The Swan Bitcoin thread posted on May 30 referred to a recent remark by Jack Dorsey, who questioned Bitcoin’s long-term significance if confined solely to a store-of-value role—reviving a key debate in the community. At Bitcoin 2025, Strategy’s co-founder and executive chairman, Michael Saylor, addressed the issue by likening Bitcoin’s function to that of gold in the 19th century, proposing it will reshape the definition of cash for the present era. Analyst Lyn Alden remarked that while Bitcoin serves as both a store of value and a medium of exchange, its adoption should initially emphasize the former. Lightspark CEO David Marcus highlighted the cryptocurrency’s present role in facilitating real-time payments.
Earlier this month, Draper drew a comparison between the Confederate dollar—which plummeted in value from parity with the U.S. dollar to over 10 million to 1 during the Civil War—and the current vulnerabilities threatening the U.S. currency. He pointed out that the U.S. Dollar Index is experiencing its weakest start in 40 years and cautioned that rising geopolitical tensions could further undermine confidence in the dollar. Emphasizing Bitcoin’s benefits, Draper argued that its transparent ledger and ease of storage make it superior to gold, which he characterized as cumbersome to store, move, and use in everyday transactions.
Bitcoin might be worth an infinite amount of USD.
Draper remarked:
He noted that certain governments have begun adding bitcoin to their reserves and recommended that individuals keep a sufficient amount—enough to cover six to twelve months—in preparation for potential systemic failure or extreme inflation.
