Draper currently supports governments managing bitcoin adoption like Uruguay, Panama, and El Salvador. He warns that restrictions on cryptocurrencies, as in Argentina, would make investors go away.
If Mauricio Macri were the current leader of Argentina, bitcoin might be a legal tender in the country. This information got stated by Tim Draper in a US magazine about cryptocurrencies last Tuesday.
Tim Draper is a 63-year-old American investor who has gathered at least $ 2 billion throughout his career. He was one of the pioneers to invest in bitcoin in 2014 when cryptocurrencies weren’t popular and with companies like Twitch, Hotmail, Skype, Twitter, Tesla, Coinbase, Robinhood, and SpaceX.
During the last year of Macri’s presidential term, Tim Draper suggested exchanging the Argentine peso for bitcoin. The billionaire investor explained that this move would help prevent the devaluation of the currency and the flight of Argentines and companies to other nations.
Since then, March 2019, the value of bitcoin has reached a high peak of more than 1,300%, while the Argentine peso has devalued almost 400%. The cryptocurrency went from being worth $ 4,000 at that time to at least $ 57,000.
Tim Draper promised the former president of Argentina would double his investment in the country. But he asked Macri that if the opposite situation happened, the former president should make the cryptocurrency legal tender in the country, as El Salvador did this year for the first time in the history and became a good paradise for bitcoin.
Tim Draper Believes Bitcoin is the Solution to Prevent Devaluation
Tim Draper highlighted that Mauricio Macri was concerned about the idea of adopting bitcoin in Argentina due to the possible rejection of the International Monetary Fund (IMF). A phenomenon that is currently happening today with El Salvador and some other traditional entities.
However, Draper still defends that that’s the wrong way to look at it. The investor believes that when countries like El Salvador make these decisions, they instantly attract money and investments. He claims that he will go there to invest, like many other investors. It shows a completely opposite scenario to the one Argentina is going through nowadays.
Draper tried to explain that excessive prohibitions and restrictive policies in the market do not benefit the economy, such as the tax on cryptocurrencies established by the current president of Argentina, Alberto Fernandez. He warns that government regulations only make companies and people feel overwhelmed by the lack of freedom. Those affected companies and citizens would intend to go to other countries that offer more benefits.
In this situation, Draper adds that, according to him, bitcoin represents cross-border freedom and will be the universal currency that will erase corruption and centralized control. Tim Draper also highlights during the interview his golden rules for investing.
By: Jenson Nuñez