Billionaire and bitcoin investor Tim Draper predicts in less than 10 years’ time, a majority of governmental services will be done virtually across the globe as a result of blockchain and cryptocurrencies.
“This is going to be the biggest change in the history of the world and it’s so exciting,” Draper tells FOX Business about the technology. “I thought the internet was super exciting, but this is going to completely change everything and the government itself is going to change.”
Draper, a longtime venture capitalist who has been right about investing in big companies like Skype, Hotmail and Tesla, says he has poured hundreds of millions of his wealth into bitcoin because he believes it will be the centerpiece of our new “virtual” world.
“Over the next five to 10 years, they’ll be able to use blockchain to do most government services virtually,” he says.
Additionally, he believes that in the long term, governments will have to compete for us and “these artificial borders” are going to go away and dissolve over time.
“People will be able to move from one country to another based on which one is providing the best service at the lowest cost. Very similar to the way you choose a home or a cell phone, the same thing should happen in government and it will.”
While he understands the idea may seem outlandish to most people, he firmly believes it will happen.
“Yeah, it’s a little scary because change is scary, but we are in a midst of a change in technology no matter how much people try to pound it down,” he says. “Putting your credit card online, having your e-mail known by people and being on Facebook with your picture, all those things were very scary to people but now we all do it. So, now governments are going to go virtual, and we need to get used to it.”
For instance, he says China is scared of the technology so they are blocking the movement, which is a “huge mistake” and is forcing people to leave.
“All the best entrepreneurs in the world in China are going, ‘where do I go?’ And Japan says, ‘hey, bitcoin is a national currency here and now all those people are heading towards Japan,” he says. “Countries are starting to recognize that they’re in competition for great minds of the world.”
Draper says the U.S. still has an opportunity to become a leader despite falling behind on innovation in recent years, which is the reason he is working on dividing California into three states. The move, he says, will force the state to have three new fresh governments that can take advantage of new “ways of thinking.”