Tim Draper and Facebook in talks
Bitcoin investor and social media platform reported to be meeting
It has been reported that a meeting between Tim Draper and Facebook is in the works. The venture capitalist and founder of Draper Associates is said to be meeting with the social media giant to discuss Facebook’s interest in creating its own cryptocurrency – a rumour which broke several months ago.
According to BitcoinExchangeGuide, Draper will be looking into whether an investment into Facebook Coin will be ‘a good fit’ for Draper Associates. Facebook is reportedly going after $1 billion in venture capital to fund their stablecoin project.
Facebook users would potentially be able to conduct transactions using Facebook Coin over Facebook messaging app, WhatsApp. Facebook Coin will likely be pegged to a fiat currency, such as the U.S. dollar, making it much less volatile than other popular cryptocurrencies.
Back in January Draper had this to say to the Malta A.I. & Blockchain Summit website, “We welcome Facebook into Bitcoin’s cryptoverse. I am concerned with any cryptocurrency that is tied to fiat though. It seems to be technology without a market. Why create crypto if you just tie it to government political currency!”
He did concede that at least “Facebook is tying it to the Dollar and not to the Nigerian Naira.
“Still, the currency will hold political risk with seemingly no benefit. Maybe they should just use Dollars. Or better, Facebook should use Bitcoin, seeing how poorly they are being treated by governments around the world.”
Draper, who was an early investor in companies like Tesla, Hotmail and Skype and reportedly earned $89.1 million by investing in Bitcoin starting back in 2014, despite the constant fluctuations in the currency. Today Bitcoin trades at $5,094, but Draper is optimistic about the years ahead, predicting a meteoric rise in prices by 2022.
“My reasoning is that all these engineers have to create all the things they are doing to make it really easy for us to spend it and to use it and to move it and to build it into our contracts and all of that,” Draper said. He said his price target is based on the assumption that bitcoin can gain 5 percent market share of all the world’s currencies.
In March, Barclays analyst Ross Sandler said Facebook Coin could ultimately add $19 billion in additional annual Facebook revenue.
“Any attempt to build out revenue streams outside of advertising, especially those that don’t abuse user privacy are likely to be well-received by Facebook’s shareholders,” Sandler said.
Tim Draper is confirmed as part of the line up for the Malta A.I. & Blockchain Summit conference in May.