- Venture capitalist Tim Draper predicts macroeconomic forces, including a weakening U.S. dollar, will reduce the impact of future Bitcoin halving cycles.
- Draper suggests the U.S. dollar could become obsolete in the next 10–20 years, as global financial systems undergo major changes.
- Investors are increasingly turning to Bitcoin as a safeguard against inflation, poor fiscal management, and global instability.
- Some industry figures suggest that Bitcoin’s price cycles may shift due to macroeconomic factors, though others believe the traditional four-year cycle still plays a role.
- Analysts and experts forecast continued growth in cryptocurrencies and digital tokens as alternatives to fiat currencies decline in influence.
Tim Draper, a venture capitalist and founding partner at Draper Associates, states that the falling value of the U.S. dollar will weaken the usual effects of Bitcoin’s four-year halving events. These cycles have historically contributed to significant price changes since Bitcoin was introduced in 2009.
In an interview with Cointelegraph, Draper said that within the next 10 to 20 years, “the dollar will be extinct.” He describes this shift as part of a major global transformation that is currently unfolding.
Charts show Bitcoin’s price reaching new highs while the Dollar Currency Index (DXY), which tracks the value of the U.S. dollar compared to other currencies, is falling. Draper notes that more investors are viewing Bitcoin as a way to avoid problems like poor government decision-making, inflation of traditional currencies, and geopolitical risks.
“The halvings may have less of an effect if Bitcoin runs against the dollar the way it has, because it will probably go for a prolonged period,” Draper said. “It will still be affected in some way by that four-year cycle, but I think the effect will dampen. I think there will be a macro driver that pushes Bitcoin along, and I think the macro driver will be a bigger deal than the halvings.”
There is ongoing debate among experts. Xapo Bank CEO Seamus Rocca says the four-year cycle for Bitcoin is not over, while others believe the cryptocurrency’s price is now shaped more by global economic forces.
Earlier this year, analyst Jeff Park from Bitwise expected that Bitcoin would increase in value as investors worldwide look for alternatives due to currency inflation, increased geopolitical tensions, and a declining U.S. dollar.
The Trump administration has said U.S. dollar-backed digital coins, known as stablecoins, are key for keeping the dollar’s status as a top global currency. By moving the dollar to digital form, more people around the world can use it through cellphones and crypto wallets.
However, Bitcoin supporter Max Keiser argues that U.S. dollar stablecoins are only a temporary measure and may eventually lose out to Gold-backed tokens and Bitcoin as the dollar continues to weaken.
For more on this trend, see the related coverage on Bitcoin’s adoption curve by Fidelity and ongoing policy discussions like the GENIUS Act.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Shiba Inu Burn Rate Soars 2,080%, Analysts Predict 1,500% Rally
- 6 Altcoins That Could Outperform XRP’s Historic 2017 Bull Run
- Crypto Mogul’s Father Missing, Suspected Kidnapping Tied to Theft
- China to Launch Flying Taxis by 2027, Exports to Russia, UAE Set
- Trump Signs Stablecoin Bill, Bitcoin Surges, Indian HNIs Join Rally
