Altcoins enable developers to experiment with new functions and applications, which eventually get integrated onto Bitcoin, American venture capital investor Tim Draper stated.
Venture capitalist and founding partner of Draper Associates, Tim Draper, stated alternative cryptocurrencies might ultimately strengthen Bitcoin by serving as experimental platforms for enhancements that are being developed.
During an interview on CNBC’s Squawk Box on Monday, Draper said that there will also be “many other cryptocurrencies” created over time, which will help increase Bitcoin’s (BTC) dominance.
It was said by him that, “Competition is good for the world, but as a percentage of all cryptocurrencies, Bitcoin, with the first boom, they had a 40% market share, with the next boom, they had 50% market share, and now the market share is running around 61 to 62%.”
He added that over time, “the strongest network is built by the dominant supplier,” which results in developers programming for the “dominant supplier.”
Microsoft was the ‘Bitcoin of Web2,’ Says Tim Draper
A similar situation played out with Microsoft, Draper said, because most developers were building on it when it first started out. However, some applications were created elsewhere and eventually were ported.
Microsoft is considered one of the top tech giants in the world, with its Windows operating system taking up over 71% of the market share.
He said, “Well, the same thing is happening now with Bitcoin. All of these smaller cryptocurrencies are experimenting and doing interesting things, and all of the great engineers are porting those to Bitcoin, so there is a gravitational pull toward Bitcoin.”
“There are other currencies that will come up as flashes in the pan but I think overall, we’re in a major trend toward Bitcoin.”
However, a different picture is currently painted by data from Electric Capital.
It is estimated by their latest developer report that there are only 2,583 total developers on Bitcoin. This is a fraction of the total developers on the EVM stack (12,931) and Ethereum (9,094).
Tim Draper Argues Bitcoin Protects Against Government Spending
Draper also reiterated his stance that Bitcoin is a hedge against bad governance and out-of-control government spending.
Draper said that government spending has become “uncontrolled,” with the spending as a percentage of gross domestic product going on a “rapid tear over the last hundred years,” with no sign of “slowing down.”
The United States’ national debt has continued to grow yearly, with the Treasury Department estimating that in the last 100 years, debt has grown from $395 billion in 1924 to over $37.2 trillion in 2025.
Draper said, “Your only hedge against that kind of government spending is Bitcoin, unless you want to hold gold, which is like holding onto shells. It’s like being prehistoric in your thinking about the economy.”
“Bitcoin is your alternative that allows you to deal with the major changes that are happening in government policies over time.”
Bitcoin’s $250,000 Price Prediction Is Still a Possibility
It was predicted by Draper that Bitcoin would reach $250,000 and eventually make the US dollar extinct, though he acknowledged that it hasn’t come true yet.
He said, “I’ve been predicting $250,000 for a Bitcoin for a long time. It turns out I haven’t been right yet, but we’ve gotten halfway there. So that’s very exciting.”
A new all-time high of $124,450 was hit by Bitcoin on Aug. 14, but it has since retreated 11.8% to trade at around $109,144, according to CoinGecko.
