Venture capitalist Tim Draper warned on October 28 that individuals and companies holding traditional currencies risk falling behind if commerce shifts toward bitcoin. Draper, founder and managing partner of Draper Associates, predicted that businesses would initially accept bitcoin alongside other payment methods before eventually accepting it exclusively.
"I've said it before and I'll say it again. It's irresponsible to not own bitcoin," Draper stated on X.
Such a merchant shift would weaken demand for dollars and other government-issued currencies, potentially prompting bank withdrawals, according to Draper's prediction. "Then people will not value dollars or fiat, and there will be a run on the banks. Eventually, the world will never be the same," he wrote.
Treasury Allocation Recommendations
Draper has advocated for bitcoin holdings as a hedge against financial disruptions. At the Bitcoin 2026 conference in Las Vegas, he called it irresponsible for companies not to maintain a 5% to 15% bitcoin treasury allocation.
In September remarks, Draper urged families to hold six months of expenses in bitcoin, companies to cover four weeks of payroll, and governments to allocate part of their treasuries to the cryptocurrency. Following Silicon Valley Bank's 2023 collapse, he advised startups to maintain at least two payrolls' worth of cash in bitcoin or other cryptocurrencies alongside six months of short-term cash in each of two banks.
Updated $250,000 Forecast
Draper's $250,000 bitcoin price target, originally stated in April 2018 with a 2022 deadline, has been extended multiple times. He subsequently pushed the deadline to mid-2023, then 2025. On April 14, he renewed the forecast with an 18-month window, implying October 2027.
Existing Bitcoin Payment Infrastructure
Current payment systems already enable bitcoin transactions while allowing merchants to maintain dollar pricing. Square's bitcoin payment service, launched on November 10, 2025, using the Lightning Network, allows eligible U.S. sellers outside New York to receive bitcoin or choose immediate conversion into dollars.
PayPal offers bitcoin payments with automatic currency conversion through its Pay with Crypto service for eligible U.S. merchants, with customers paying in bitcoin while businesses receive funds in local currency. Steak 'n Shake began accepting bitcoin across U.S. locations on May 16, 2025, through payment provider Speed, adding the cryptocurrency alongside cash and cards.
According to Draper, "The individuals and companies that are ready for the seismic shift will come out ahead. Those that are left holding legacy currency will not."
