According to a bold prediction by the American venture capital investor Tim Draper, a single bitcoin will be worth $250,000 by 2022. The remark was recorded on April 12, 2018, when he spoke at the Blockchain Party event organized by Draper University.
Addressing a crowd of cryptocurrency enthusiasts, Draper stepped onto the stage and said, “I’m thinking $250,000 a bitcoin by 2022,” as he distributed t-shirts that carried a “250k by 2022” caption. He urged the crowd to believe in his prediction, clearly believing that his prophecy will come true.
Draper’s Investment and Views on Bitcoin
Tim Draper is seen as one of the early backers of bitcoin. On June 27, 2014, he bought 30,000 bitcoin from a public auction by the US Marshals Service for an undisclosed amount. It was later estimated that he bought 30,000 bitcoin at $600 apiece, making them worth $243 million at current bitcoin prices.
Since then, Draper has continued to hold a bullish view on bitcoin along with other cryptocurrencies. Draper is a third-generation venture capitalist, with his father’s venture capital company owning around ten percent of Skype when it was sold to eBay.
Accurately predicting bitcoin prices is a long shot given the highly volatile nature of cryptocurrencies. Analysts on Wall Street have made several attempts to ascertain where bitcoin prices are headed to no avail. Financial quants even went as far as deriving mathematical relations by relating bitcoin to gold and even the tulip crash of the 1630s. However, in 2015, Draper had accurately predicted that bitcoin would top $10,000 by the end of 2017 as the cryptocurrency went on to hit a lifetime high of $19,660 in December 2017.
Blockchain Tech is Transformative and Disruptive
The Stanford graduate believes that blockchain, the same technology behind bitcoin and other cryptocurrencies will revolutionize several sectors, including but not restricted to finance and healthcare.
Draper told the San Mateo Daily Journal, “The blockchain is one of the most transformational technologies that has happened in the history of the world, and it is totally worth celebrating.”
Bitcoin is the Currency of the Future
In an interview, Draper said that there was currently a total combined of over $100 trillion of fiat currency in circulation. He argued that paper currency was open to being manipulated by the government as well as bureaucrats, which he viewed as a potential reason for its demise. When asked why he is a firm believer in the bitcoin, he simply extolled his belief that the world’s best minds are now working to create a digital, decentralized future.
The notable bitcoin investor told CNBC:
“In five years if you go to a Starbucks or McDonald’s and try to buy a burger or coffee with fiat currency, the person at the counter is going to laugh at you. There’s a real need for a currency that’s global.”
Within five years, we will all be using cryptocurrencies for our daily transactions is his staunch belief.
Other Notable Cryptocurrency Investors
The Rockefeller family, with an estimated net worth of billions, has apparently taken a long position on bitcoin and other cryptocurrencies. Its venture capital firm Venrock also partnered with CoinFund to infuse capital in business aimed at solving problems using the blockchain technology.