Billionaire Crypto Investor Tim Draper Shares Why $250,000 Bitcoin Price Prediction by 2022 Will Happen
Price predictions have become as common as altcoins in the crypto industry. Tim Draper has made yet another price prediction for the future of bitcoin. The Silicon Valley billionaire and venture capital investor claims bitcoin will hit a price of $250,000 by 2022.
The news was reported by TheStreet, which spoke with Draper earlier this year.
The 60-year old Draper first became publicly associated with cryptocurrencies in 2014 when he purchased bitcoins sold at auction after the Silk Road marketplace seizure.
More recently, Draper has been making headlines – particularly in California – for his support for an initiative to separate California into six smaller states.
Draper founded his venture capital firm, which would eventually become Draper Fisher Jurvetson, all the way back in 1985. DFJ is one of Silicon Valley’s top and best-known venture capital investors. As of 2015, Draper has stepped away from the company to focus on his personal fund, Draper Associates. Between his personal fund and professional fund, Draper has invested in well-known tech companies like Tesla, Skype, Baidu, Twitch, Theranos, and Hotmail, among others.
The latest interview with TheStreet reveals some interesting information beyond the $250k price prediction. Some of the notable moments from the interview include:
- TheStreet asks Draper if Ripple, Ether, and other cryptocurrencies should be regulated, citing a recommendation from the CFTC. Draper doesn’t specifically address this concern, although he does describe how crypto regulations “need to be reined in and made clear”. Draper explains that the world’s governments are competing to attract some of the world’s largest blockchain companies and crypto organizations. The government with the clearest and fairest regulations will win.
- Draper claims “I believe cryptocurrencies will overtake fiat currencies in the next five to seven years.”
- “Fiat currency will eventually become as passé as trying to pay for coffee with pennies.”
- Security is one of the most underrated but best features of cryptocurrencies; the bitcoin blockchain has never been hacked, but banks are constantly being hacked. Bitcoin is the most secure payment protocol in the world today. Draper describes it as “like the hero that came at the perfect time to save us as banks have begun to lose their safe hold on people’s money.”
- Draper is asked that if cryptocurrencies aren’t securities, then what are they. Draper responds that cryptocurrencies “are very much currencies” because “they are recognized tender throughout the world.”
- Draper brings up an interesting analogy regarding how securities regulators approach regulation: “If you are a knee surgeon, everyone looks like they have a knee problem you need to solve. If you are a securities regulator, everything looks like a security to you. Unless the tokens are tethered, they are not securities in my view.” It’s a modern take on the “when you have a hammer, everything looks like a nail”, philosophy.
- Draper makes specific price predictions regarding the future value of crypto markets. Specifically, Draper claims the $86 trillion global market for currency will grow to be about $140 trillion within the next 10 years, with much of that growth fueled by crypto. Crypto will increase the velocity of money.
- Draper believes crypto will become as much as $100 trillion of the $140 trillion global cryptocurrency market, with about 10% of the market consisting of bitcoin.
- Draper also reveals he’s a diehard hodler. “I have no interest in selling my bitcoin. What would I sell it into anyway? Moving from crypto to fiat is like trading shells for gold. It is reverting to the past. I’m thinking long term I’ll use it, spend it, invest it, or just keep it.”
- Finally, Draper makes a specific price prediction. Bitcoin will be worth $250,000 within the next four years. By 2022 at the latest, one bitcoin will be worth $250,000.
Ultimately, you can view Tim Draper’s full interview at TheStreet here. It’s an interesting look at how one of the biggest investors in the tech space sees bitcoin, cryptocurrencies, and the future of our favorite industry.