Venture capitalist Tim Draper believes bitcoin, blockchain technology, and artificial intelligence will disrupt major industries, including health care, finance, and government.
The transformation of those industries will create huge opportunities for entrepreneurs and investors such as himself, Draper told Business Insider in a recent interview.
Draper has bet big on bitcoin and has been investing in bitcoin- and blockchain-related startups.
Although he’s had some big investment successes, including Tesla, his track record on forecasting the future of government or innovation is somewhat checkered by his failed effort to split up California and his backing of health care startup Theranos, which has since been shut down following allegations of fraud.
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In the last two decades, internet and digital technologies have transformed industries ranging from publishing to food delivery.
But longtime venture capitalist Tim Draper thinks a new generation of technologies could have an even bigger impact, shaking up some of the biggest sectors in the world, including healthcare, commerce, finance, insurance, and, government. Artificial intelligence, big data, and, especially, cryptocurrency-related technologies, such as smart contracts, will decentralize power, tie the globe closer together, and yield some big opportunities for investors such as himself, Draper told Business Insider in an interview last week.
“This is going to be a really interesting, transformative time,” said Draper, whose track record includes backing companies including Tesla and Cruise Automotive, which was acquired by GM. “And I’m excited to be a venture capitalist during that time, because it’s the entrepreneurs and the venture capitalists that benefit the most when the biggest industries get transformed.”
Using some of the new technologies, it would be fairly easy to set up an insurance company or program, Draper said. Smart contracts — agreements built on blockchain technology in which the terms are written into lines of code — can automatically determine eligibility for benefits and pay them out. Artificial intelligence can be used to catch fraud. Add in some good actuaries to determine risks, and you’re in business — ostensibly without having to hire a bunch of workers.
“All that can be done right now,” Draper said.
Draper thinks government will be transformed by new technologies
But that capability has obvious applications for governments, he said. Much of what governments do involve offering kinds of insurance, whether for health, retirement, or disasters, he noted.
“What is government, but a bunch of different insurance companies,” Draper said. He continued: “Government is one of the biggest industries in the world, and that’s about to go through a transformation.”
But Draper argues that the new technologies promise even more profound change. Bitcoin, the blockchain, and smart contracts are all decentralized systems. Governments and companies have little direct control over them. Smart contracts don’t require courts and government to enforce them, for example; they’re self-enforcing via software.
They’re also global systems. Bitcoin can be exchanged around the world and isn’t subject to controls by national governments. Holders of the cryptocurrency in different countries can conduct transactions using the same …read more
Source:: Business Insider