[Blockchain Today Reporter Jihye Han] Tim Draper, a bitcoin investor and early Tesla investor, responded to Elon Musk’s recent tweet.
Tim Draper is a billionaire Bitcoin investor, one of Tesla’s earliest investors. He recently reacted to Elon Musk’s tagging of the “bitcoin” hashtag on Twitter. Draper is a person who owns about 30,000 bitcoins. He told Elon Musk that he would buy Tesla’s cyber truck in BTC, while also not forgetting to promote his Bitcoin payment processing portfolio company OpenNode.
“I would buy a Tesla Cybertruck,” he tweeted to Elon Musk. Personally, I will hold Bitcoin. “You can hold #Bitcoin with Opennode, a Draper VC partner.”
Along with this, Twitter CEO Jack Dorsey and Reddit co-founder Alexis Ohanian joined Elon Musk’s bitcoin mention by adding a bitcoin hashtag to their Twitter account.
On the 29th (local time), the price of bitcoin rose by almost 14% in less than 30 minutes after Elon Musk made a comment on bitcoin.
In this regard, for the recent increase in coinbase bitcoin holdings, many pointed to Elon Musk as the person behind it. In the last 7 days, Coinbase’s premium has soared to roughly $200 compared to Binance. This means that US investors’ buying activity was remarkable. However, the price of Bitcoin, which rose from $33,000 to $38,000, fell back to $33,000.
The reason Draper tweeted towards Musk is explained by Musk’s high interest in Bitcoin and the positive sentiment of the market towards BTC.
Draper said in a recent interview with CNBC that he actually bought Bitcoin. It also showed strong belief that Bitcoin will be the currency of the future, saying that he has no intention to sell BTC in the future. “I’m actually buying more bitcoins. I want to say that I have no intention to sell bitcoins. Why should I sell the currency of the future for the currency of the past?”
According to on-chain data, Draper wasn’t the only one interested in long-term profits. In fact, the percentage of investors who would’hold’ Bitcoin without selling it hit a new record.
Bitcoin is seen as a way to store value and as a substitute for gold. However, the inverse and proportional relationship between bitcoin, gold and stocks has recently declined.
In addition to significant price increases, fears of inflation and massive liquidity inputs from central banks have sparked interest from institutions and large investors.
Acceptance of BTC is generally occurring, but doubts remain as to whether Bitcoin will be used as a real currency, and whether it will be used as a means of exchange such as dollar today.
Paradoxically, when the price of Bitcoin rose, investors didn’t sell BTC very much. Drape also expressed the opinion that if he bought a cyber truck, he would buy it with dollars rather than bitcoin.
On the other hand, if the price of Bitcoin becomes stable and volatility decreases in the future, it is highly likely to be used for daily payment activities.
If more users join the network, the Bitcoin blockchain network will be less efficient to use as a daily payment method.
Currently, for micropayments, Lightning Network and Liquid are used. Such an interoperable platform has the advantage of being fast, but it may have disadvantages in terms of reliability, privacy, and decentralization.
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