Regarding Bitcoin’s recent price movements and market dominance relative to other cryptocurrencies, Draper expressed surprise saying it had ‘consolidated more than I thought it would’. Per the crypto bull, he had been expecting Bitcoin’s dominance to fall and other cryptocurrencies to take up a larger share. Draper attributed this dominance to the fact that Bitcoin is ‘decentralized’ while many other cryptocurrencies in the space are the exact opposite. Currently, Bitcoin dominance is at 69.4 percent, up by nearly 20 percentage points since April.
The venture capitalist also highlighted the dilemma that exists between holding Bitcoin especially now that it is increasingly being viewed as a safe haven and using it for day-to-day transactions due to the opportunity cost in the event that it appreciates. Four years ago when Bitcoin was still a novelty, the venture capitalist had projected that the cryptocurrency would reach $10,000 by the close of 2017. At the time was trading at well below $500. Two years after making the prediction, Bitcoin went on to hit $10,000 and nearly double the target in exactly the year Draper had predicted.