Tim Draper, a venture capitalist and founding partner at Draper Associates, says Altcoins can ultimately improve Bitcoin by acting as a test ground for upgrades.
In an interview with CNBC’s Squawk Box on Monday, Draper said there are “many other cryptocurrencies” as well.
“The competition is good for the world, but Bitcoin, a percentage of all cryptocurrencies, has a market share of 40% along with the first boom, with the next boom having a market share of 50%, and currently operating at 61-62%,” he said.
Adding that results in programming of the “dominant supplier” as “dominant suppliers build the most powerful network.”
Microsoft was Web2 Bitcoin
According to Draper, Microsoft said most developers built it when they first started. However, some applications were created elsewhere and eventually ported.
Microsoft is considered one of the world’s top tech giants, with Windows operating systems accounting for more than 71% of the market share.
“Well, the same thing is happening with Bitcoin now. All of these little cryptocurrencies are doing experiments and interesting things. All great engineers are porting them to Bitcoin, so they sometimes pull gravity towards Bitcoin,” he said.
“There are other currencies that come out as a flash of bread, but overall I think we’re in a big trend towards Bitcoin.”
However, data from electricity capital is currently drawing another picture.
Their latest developer report estimates that Bitcoin has only 2,583 total developers. This is part of the total developers of EVM stacks (12,931) and Ethereum (9,094).
Bitcoin is a hedge against bad government spending: draper
Draper also reiterated his stance that Bitcoin is a hedge against bad governance and out of control government spending.
Draper said government spending was “uncontrolled” and that GDP has taken “rapid tears in the last 100 years” and there are no indications of “slow slowing.”
US government bonds continue to grow each year, with the Treasury estimates over the past 100 years that debt has increased from $395 billion in 1924 to more than $37.2 trillion in 2025.
“You’re just a hedge against that kind of government spending. If you want to keep money, it’s Bitcoin. This is like holding shells. It’s like prehistoric in thinking about the economy,” Draper said.
“Bitcoin is an alternative that allows government policies to cope with major changes that are happening over time.”
The $250,000 price forecast may still be on the table
Draper predicts that Bitcoin will reach $250,000 and will eventually extinct the US dollar, but he admits that it hasn’t happened yet.
Related: Harvard Economist admits that he was wrong about Bitcoin crashing to $100
“I have been predicting $250,000 in Bitcoin for a long time. It turns out it wasn’t right yet, but I went along the way. It’s very exciting,” he said.
But Draper had previously predicted Bitcoin would reach $10,000, but told Cointelegraph in 2017 and in 2023 that he only had a fresh forecast of $250,000 by the end of 2022, as he felt another crack after nailing his initial price guess.
According to Coingecko, Bitcoin hit a new all-time high of $124,450 on August 14th, but 11.8% later traded at around $109,144.
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