The eccentric billionaire and venture capitalist come vocal cryptocurrency supporter Tim Draper has become notorious for his optimism and bullish attitude regarding virtual currencies. Moreover, it would seem that Draper is unfazed by the recent downturn in cryptocurrency, as he recently made a price prediction that is sure to turn heads.
Draper sat down with the financial news publication TheStreet in mid-May and discussed a myriad of different cryptocurrency issues, such as his take on cryptocurrency regulation, the issue of hacked cryptocurrency wallets, and even how Donald Trump should proceed in relation to cryptocurrencies.
However, the most sensational piece of information to come out of the interview might very well be Draper’s price estimate for Bitcoin. He argued that he has ”revised” his previously held estimate up to the prediction that a single Bitcoin will be worth a whopping $250,000 in 2022.
Nonetheless, Draper is not only betting on Bitcoin. He also predicted that although Bitcoin will be a $10 trillion business in ten years time, he believes that the global market for cryptocurrency will be worth $100 trillion in the same time span.
These numbers are mind-boggling, however, Draper argues that they are in fact probable if one takes into account that fiat currencies could decrease in use, which Draper says is the case. Furthermore, Draper points to past innovations such as Lightening, Bitcoin Cash, Bitcoin Gold as examples of how cryptocurrency can grow and ”surprise us”.
Draper also mentioned that he believes a pivotal point for Bitcoin will be when, ”in about four years”, people start paying in cryptocurrency. He also talked about how he believes that central banks will soon be obsolete and suggested that he ”felt like [he] should tell them to start looking for a new job” in relation to Federal Reserve employees.
The billionaire also stated that he would not exchange his cryptocurrency assets for fiat currency even if the price of Bitcoin hits $250,000. ”Moving from crypto to fiat is like trading shells for gold”, he said. ”It is reverting to the past. I’m thinking long term I’ll use it, spend it, invest it, or just keep it”.
Tim Draper is also known for not mincing his words when it comes to other matters. He has recently been a driving part of the ”Cal 3” campaign, a proposal to break up the state of California into three separate states.
Although Draper’s price predictions are undoubtedly high-flying, they may not be entirely unfounded. Any prediction made just six years ago pegging Bitcoin at $6,000 in 2018 would likely have been considered equally fanciful, not to mention Bitcoin’s high of around $20,000. Whether Draper’s estimate pans out or not, it will be interesting to watch the price development of Bitcoin.
Image Source: “Flickr”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.