Why Billionaire Tim Draper Still Believes in $250,000 Bitcoin by 2022bitcoin depot
Tim Draper, billionaire venture capitalist and Bitcoin investor, predicted that by the end of 2022 or early 2023 Bitcoin will reach $250,000. He explained that he first made this bold prediction back in 2018 when the cryptocurrency was valued at $8000 per coin. “I think I’m going to be right on this one," Draper said confidently when interviewed for CNBC Make It.
Tim Draper: The Billionaire Bull
Draper is a legend in the world of venture capital. Since he founded his company DFJ, Draper has helped create some of today's most recognizable household names like Hotmail, Skype, and Tesla Motors. He invests early on to ensure that these companies have enough time for their ideas to blossom into something truly great before going public or being acquired by another entity such as Google.
Draper has been investing in Bitcoin for years, and he’s now a vocal advocate of blockchain technology. In 2014, he purchased 30,000 seized bitcoins from the U.S Marshals (worth about $600 at the time). To date, he has invested in over 50 cryptocurrency-related companies, with investments including Coinbase, Ledger Wallet Company, and Tezos Blockchain, and others.
Draper’s Prediction Track Record
Tim Draper's opinion on Bitcoin has been well documented. He predicted that the price of BTC would rise to $10,000 three years ago when it was trading at around $500 and he didn’t disappoint. In December 2017, Bitcoin reached over $10,000 with a high of almost $19,000 before sliding down below $8,000 the following year. However, Draper still remains optimistic about his predictions for 2022, where he predicts Bitcoin will blow past the monumental 6-digit price point up to $250,000.
Corporate Adoption to Drive Prices
The $250,000 Bitcoin price prediction is based on his belief that it will be “much more in use by then.” Draper predicts retailers all over the world will have adopted the bitcoin payment processor OpenNode and begin accepting payments using this cryptocurrency. Currently, only a few major companies are accepting Bitcoin. Microsoft, PayPal, Overstock, and Home Depot are accepting bitcoin directly while Starbucks accepts them indirectly through Pie, a third-party digital wallet app.
Many experts see Bitcoin as an investable asset rather than fiat currencies, but if these predictions come true, we can expect to hear about millions of people trading with each other around the world from their smartphones! In this scenario, crypto ATMs will be as commonplace as your local cash ATM. In fact, exchanging your bitcoin for cash already exists as a way for users to make a simple transaction that can take place at every gas station or corner store.
Draper suggests that Bitcoin will continue to rise because the maximum supply is capped at 21 million bitcoins. So far, more than 18 million have already been mined. This means that the number of available bitcoins is reducing. Some economists (source needed) have predicted that this scarcity in supply may result in higher prices down the line.
Bitcoin Taproot Upgrade Brings Major Improvements
Another major reason for Tim’s bullish outlook on Bitcoin is the continued improvements planned for the coin. In the last four years, engineers have been working diligently to improve Bitcoin. In June of 2021, they unveiled its first major update in the last few years, known as Taproot, which will make it faster and more private than ever before.
The Taproot upgrade is also meant to give Bitcoin the sophistication of Ethereum when it comes to smart contracts. It will be exciting how this new platform could make blockchain technology even more relevant in today's society. The change is set to go into effect in November 2021 and promises a new era for Bitcoin.
$250,000: Far-fetched or Not Far Off?
This prediction for Bitcoin may have been a little far-fetched only 10 months ago when the coin was valued at around $10,000 per coin. However, many economic experts are predicting further gains in its future growth, an indication of what is possible. We are on track for a new golden age of cryptocurrency as long as this technology can continue on its current path.
Sept. 7, 2021