Tim Draper, a legendary venture capitalist based in Silicon Valley, has long been a believer in Bitcoin (BTC), reportedly buying boatloads of the asset (a reported 40,000 coins) in 2014. And even while BTC has exploded in value since then, undergoing a bull run that sent cryptocurrencies ‘to the moon’, Draper has claimed that he hasn’t sold, as he still expects this newfangled asset class to boom in the long haul.
More specifically, speaking with CoinTelegraph, the “staunch” bull recently doubled-down on his $250,000/BTC price prediction, one of the most optimistic forecasts for the world’s foremost cryptocurrency.
Speaking on Bitcoin’s recent bout of capitulation, which saw the aggregate value of all cryptocurrencies fall under $130 billion, Tim, who runs a venture fund and entrepreneur-focused university that shares his surname, noted that the sell-off was simply a ‘fluctuation.”
He mused that this move, which proved to be devasting for retail investors, could have been catalyzed by market manipulators, before adding that bankers are “loving it” as crypto remains in a crisis, as such institutions have a vested interest in fiat. However, Tim, who parents a crypto-friendly venture capitalist, then explained that Bitcoin’s recent move lower could just be a byproduct of market cycles, potentially accentuated by external bearish pressures.
Adding to his sentiment that the decline isn’t out of the ordinary, Draper then noted that in any business, a disruptor — Bitcoin in the case of finance — often moves with immense volatility, even if the innovation holds immense value for the health of humanity.
Maintaining this optimistic thought process, Draper then noted that with 2018’s dip could “create a great opportunity for people to start becoming users of the currencies of the futures, crypto,” of course. Echoing claims he conveyed to Ran NeuNer of CNBC Africa’s “Crypto Trader” and OnChain Capital weeks ago, Draper alluded to the fact that fiat, tied to political forces, aren’t likely to survive.
I always look at a crisis as an opportunity. And that’s the way I’m looking at this one. All times are good times to enter the crypto market. If you are forward-thinking, you’re going to look and say ‘this is just better currency’, so it’s just a matter of time before the world adopts it. [This will happen] when everything I can do with fiat, I can do with Bitcoin.
Discussing the aforementioned point in-depth, Draper noted, dollars will eventually become irrelevant pieces of paper. More specifically, in Draper’s dream utopia, BTC usage in the real world won’t only be easy, but drastically more cost-effective than credit cards, which charge 2.5% to 4% on each transaction. He added that in the end, whether it be BTC or ETH, cryptocurrencies aren’t tied to a central bank, and aren’t subject to the whims of inflation and the flaws in human nature.
Keeping all this in mind, Draper then explained why he expects for $250,000/BTC to still occur sometime in the future. The venture capitalist first noted that the dollar will lose strength against BTC, while the aforementioned digital asset will begin to make up more and more of the global currency market.
Featured Image Courtesy of Andre Francois Via Unsplash
Tim Draper, a legendary venture capitalist based in Silicon Valley, has long been a believer in Bitcoin ( […]
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