It has been a rollercoaster of a ride for global equity investors over the past few days. Besides the month-long slide in the Chinese markets, the Dow plummeted from approximately 16,459 on August 21st to 15,446 on the 24th.
When the going gets tough, investors have historically flocked toward assets that are considered safer, including cash, gold, and treasury bills. Often times, the asset of choice is gold because it is considered the greatest store of value. However, some think that Bitcoin might one day trump gold as a means of protecting against volatility.
Tim Draper, founding partner of Draper Fisher Jurvetson, a prominent Silicon Valley venture capital fund, believes that bitcoin might one day be the preeminent store of value for investors.
“When bitcoin is mature, I expect people to run to bitcoin the way they do to gold when the market gets scary,” Draper said in an email to Bitcoin Magazine. “Currently, there is not enough usage to make people feel comfortable investing in Bitcoin when they come out of the market. I expect that to change.”