Draper Associates Founder Tim Draper Shows Parallel Between Government Budget and a Home Budget | Why He Doesn't Trust 'Government Currency'

With traditional investors like Charlie Munger expressing how bearish they are on cryptocurrency and Bitcoin, others in the cryptoverse are starting to come out with their take on why they prefer cryptocurrency instead of the "government" currency. With that, Tim Draper, the founder of Draper Associates, shares parallels in government numbers with that of a home budget.

Tim Draper Compares Five Important US Budgets

Tim Draper tweeted out five important numbers including the US tax revenue, the fed budget, new debt, the total national debt, and the recent budget cuts. After these numbers, he removed eight zeros from each showing parallels in a home budget.

Five Government Budgets:

• 2,170,000,000,000 or $2.17 trillion total US dollars in US tax revenue

• 3,820,000,000,000 or $3.82 trillion total US dollars in Fed budget

• 1,650,000,000,000 or $1.65 trillion total US dollars in New debt

• 19,271,000,000,000 or $19.271 trillion total US dollars in National debt

• 38,500,000,000 or $38.5 billion total in US dollars in Recent budget cuts

Tim Draper then told his followers to remove eight zeros from each segment and as a result, the numbers will show a typical home budget.

• 21,700 total U.S. dollars in Annual family income
• 38,200 total U.S. dollars in Money the family spent
• 16,500 total U.S. dollars in New debt on the credit card
• 192,710 total U.S. dollars in outstanding balance on the credit card
• 385 total U.S. dollars in total budget cuts so far

Tim Draper Explains the 'Government Math' and Its Parallelism

Tim Draper then explained that "this is government math" and although not completely verified, the parallelism might look a bit scary. To add, Tim Draper then ended his statement asking if people really "want to hold government currency." Ending the tweet, Tim Draper used three hashtags: Bitcoin, trust, and freedom.

Total U.S. National Debt

As per a reply by Twitter user @soloflexerus, either the interest rates will go up, and interest payments will start consuming more of the total budget or the Fed will decide to keep printing money in order to buy treasury bonds, thus inflating the dollar. With this, the user then said that either way, working men and women will be having a right time.

Another user replied to the thread sharing a tweet by the National Debt Tweets, and the total National Debt is 28,908,093,498,988.46 total U.S. dollars or around $29 trillion USD. Despite Tim Draper's tweet being off by around $10 trillion, the parallelism expressed, although not applicable to everyone, shows how high the U.S. debt is when it is compared to the budget of a regular home.

This article is owned by Tech Times

Written by Urian B.