In a recent social media post, legendary venture capitalist Tim Draper has predicted that Bitcoin might be heading to infinity against the US dollar. 

According to the American billionaire, this could happen in the event of hyperinflation. 

Draper recalled how the Confederate dollar lost virtually all of its value during the Civil War. 

The "greyback" originally had the same value as the U.S. dollar. However, the Confederate government was forced to print massive amounts of money in order to be able to sustain its war effort. As a result, the Confederate dollar rapidly lost its purchasing power since it had no international backing. 

People were desperately trying to preserve their wealth by exchanging the dollars for something tangible amid hyperinflation. Gold became so popular that no one was willing to sell it. By the end of the war, one would be expected to shell out $50 for a bar of soap.

Draper has noted that the U.S. dollar index (DXY) is having its worst start to the year in its 40-year history. He believes that it could potentially fall much further due to escalating geopolitical tensions. 

"And if geopolitical tensions escalate to extreme levels, faith in the dollar may fall much farther," he said. 

Bitcoin, according to Draper, could act as a hedge if there is an actual crisis. 

"So if the system breaks down, you don’t want to be the one clamoring to withdraw cash from the bank or hoarding gold in your room. You want to have enough Bitcoin to hold you and your family over for six months to a year," he stressed. 

Draper previously forecasted that the price of Bitcoin could surge to as high as $3 million.