Billionaire investor and venture capitalist Tim Draper says that smaller crypto projects are falling into a “gravitational pull” towards Bitcoin (BTC).
In a new interview with CNBC, Draper says while there are legitimate altcoin projects with product-market fit, he believes they will most likely be forced to migrate to Bitcoin, further strengthening BTC as the number one crypto asset by market cap.
Says Draper,
“I think there will be many other cryptocurrencies. 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 61-62%. Over time, the dominant supplier builds the strongest network, and so all the programmers program to that dominant supplier.
A lot of really interesting, innovative things happened when Microsoft was getting going and they were the platform everybody built on, but there were a few really important applications and they all got ported to Microsoft. 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 and 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.”
At time of writing, BTC is trading at $112,353.
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