Tim Draper, co-founder of Draper Associates, shared his views that altcoins play an important role in strengthening Bitcoin
He explained that new tokens often serve as test grounds. When their ideas prove useful, the best parts are later built into Bitcoin itself.
Speaking on CNBC’s Squawk Box on August 25, Draper said that Bitcoin has become the central point of the market even as many other tokens continue to appear. He pointed out that its market share has grown across different cycles, from around 40% to 50%, and now exceeds 60%.
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To make his case, Draper compared it to the rise of Microsoft. In the early days of personal computers, many developers chose to build on Microsoft’s system. Some applications started elsewhere but were later moved to Windows.
Draper said Bitcoin is going through the same process: altcoins create fresh ideas, but those features often end up on Bitcoin.
According to him, the value of altcoins lies less in their long-term staying power and more in the experiments they make possible.
Draper also repeated his belief that Bitcoin is an answer to rising government spending. He argued that budgets have expanded too quickly over the last century, with no sign of slowing down.
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