Tim Draper, $250,000 Bitcoin Price Predictor, has $260 Million Worth of BTC at $6,500 Value
Tim Draper Is Convinced Bitcoin Will Reach $250,000 Dollars
Tim Draper, the famous crypto supporter, said that Bitcoin will reach $250,000 dollars by 2022. His comments are quite important since the cryptocurrency space is in a bear market since the beginning of the year. During this bear trend, several cryptos lost more than 90% of their value.
Although Bitcoin is being traded close to $6,600 dollars, most of Bitcoin early adopters continue to have important sums of the famous virtual currency against the U.S. dollar. For example, Mr. Draper has more than $260 million dollars worth of Bitcoin. This is excluding the investments he has in other virtual currencies or projects such as Tezos.
Back in 2014, Bitcoin was traded between $1 and $5 dollars. And he said that he acquired several BTC in small batches.
About it, he mentioned:
“Small amounts, a little bit at a time. That price was about $2.50 and then it was starting to really rip and the U.S. Marshall’s Office confiscated the Silk Road money from Bitcoin. They put it up for auction. The bidders were all sort of venture capitalists and a couple of other people. They were all talking about what kind of a deal they were going to get.”
Moreover, 12 lots of thousands of Bitcoins were also auctioned in 2014 and venture capitalists were allowed to participate. Draper decided to take the risk and bought them with $632 dollars and 5 percent in premium. All 12 lots were purchased.
At that moment, he thought that Bitcoin was going to reach zero or be worth much more in the future. This is why he paid $632 and got all the lots, which were over 40,000 Bitcoins. Currently, these 40,000 BTC are worth over $260 million dollars.
He then explained that in the future, cryptocurrencies will grow faster than the internet did in the past. Furthermore, it would also grow even bigger. Internet was able to change and revolutionize information, communication and gaming. Cryptocurrencies will do the same with the financial world.
Additionally, he believes that Bitcoin will achieve $250,000 by 2022. Different companies will start to work with blockchain technology and revolutionize several industries. About it, he said:
“This is the beginning of something that’s bigger than the internet ever was. The internet went after information, communication, gaming and entertainment. They are all $10 billion to $100 billion dollar industries. […] Now the industry that this is going to change is finance. It encompasses commerce and banking and insurance and real estate. More broadly, medicine and healthcare are going to change because of smart contracts.”
If Bitcoin is able to reach $250,000 dollars in the next four years, its market capitalization would be close to $5 trillion dollars. The whole cryptocurrency market couldn’t reach $1 trillion dollar as of September 2018. However, back in January 2018, it was close to reach $900 billion dollars.
Clearly, Bitcoin will have to attract financial institutions as it has already been doing, if it wants to reach such levels in the future. Retail investors can also continue to enter the market, but the difference in price will be made by large financial institutions placing their funds in cryptocurrencies.
In the near future, the Intercontinental Exchange (ICE) will start to offer a platform specifically designed for institutions. Something that will clearly help the market attract new investments and funds.