Tim Draper (founder of Draper Associates) onstage at the Web Summit 2022 tech event.
Sportsfile via Getty Images| Sportsfile via Getty Images
Tim Draper is a venture capitalist Bitcoin The price of a coin will reach $250,000 by 2023, even though it has been a difficult year for cryptocurrency due to industry failures and falling prices.
Draper predicted bitcoin would reach $250,000 by the end 2022. But, in early November at the Web Summit technology conference in Lisbon he stated that this would not happen until June 2023.
When asked Saturday how he felt regarding his price call after the collapse of FTX, he affirmed this position.
“I have extended my prediction for six months. Draper said via email that $250k was still my number.
Draper’s prediction of Bitcoin becoming a reality would require Bitcoin to rise nearly 1,400% over its current price around $17,000 to reach that level. Since the beginning, Bitcoin has fallen over 60%.
As tighter monetary policies from the Fed and a chain reaction to bankruptcies at major industrial firms such as Terra, Celsius, and FTX have increased prices, digital currencies are experiencing severe pressure.
The already serious liquidity crisis within the industry has been worsened by FTX’s collapse. FTX’s bankruptcy is expected to have a significant impact on the financial markets, including crypto exchange Gemini and lender Genesis.
CNBC reported last week that Mark Mobius, an experienced investor, said bitcoin could plummet to $10,000 in the next year. This would be a drop of more than 40% from current prices. Mobius Capital Partners co-founder correctly predicted a drop to $20,000 in bitcoin this year.
Draper remains convinced that bitcoin will continue to grow in 2017, despite being the most popular cryptocurrency in the world.
He told CNBC that he expects a rise in quality and decentralized crypto like Bitcoin, and for some weaker coins to be relics.
Draper Associates founder is one of Silicon Valley’s most well-known investors. He placed successful bets in the success of tech companies, including TeslaSkype and Baidu.
Draper purchased 29,656 Bitcoins from the U.S. The Silk Road dark-web marketplace was sold to Marshals for $18.7million. He was a teenager in that year. predicted In three years, bitcoin’s price would reach $10,000. Bitcoin was able to rise to close to $20,000 in 2017.
Draper’s other wagers, however, have failed. Draper made a large investment in Theranos, a health-tech startup that claimed it could detect certain diseases by analyzing a few blood samples. Elizabeth Holmes, Theranos’ founder has been sentenced for fraud to 11 years.
Draper believes that bitcoin will continue to grow in the next year because there is still a huge untapped market for it: women.
Draper stated, “My assumption is, that since women control 80% retail spending, and only 1 out 7 bitcoin wallets are held by women currently, the dam will soon burst.”
Crypto has always had a gender gap problem. A survey by Momentive for CNBC and Acorns by Momentive found that digital assets are coveted by twice as many men than women (16% vs. just 7%).
Draper said that retailers will see a 2% savings on all bitcoin purchases vs dollars. Bitcoin will become ubiquitous once retailers realize that the 2% can double their profits.
Payment middlemen such as Visa Mastercard Credit cardholders can be charged fees of up to 2% for using their card to purchase goods or services. Bitcoin is a way to bypass middlemen.
It is difficult to use the digital currency for daily spending, as its price fluctuates and it is not widely accepted in the market.
Draper stated that bitcoin will be a great way to buy food, clothing, and shelter.
“Fiat management is centralized and unpredictable. If a politician decides that $10 trillion is enough, then your dollars will be worth approximately 82 cents. He said that the Fed will need to raise rates to cover the spending. “Those arbitrary central decisions create an inconsistent economic system.” he concluded. Fiat currencies are valued by their issuing governments, not like cryptocurrencies.
Meanwhile, the next so-called bitcoin halving — which cuts the bitcoin rewards to bitcoin miners — in 2024 will also boost the cryptocurrency, according to Draper, as it chokes the supply over time. 21 million is the maximum number of bitcoins that can be mined.