Venture Capitalist Tim Draper Predicts Bitcoin Will Hit $250,000

Investor Tim Draper has indicated that despite the collapse of FTX, the price of Bitcoin will reach $250,000

Venture capitalist Tim Draper has predicted that Bitcoin will reach $250,000 by mid-2023, even after a difficult year for cryptocurrencies, marked by the collapse of numerous exchanges, crypto companies and with the prices of the main tokens. down.

It is important to note that Tim Draper previously commented at the “Web Summit” technology conference in November that Bitcoin “would surpass $250,000 by the end of 2022.”

However, Draper reaffirmed his position on Saturday when asked how he felt about the state of the crypto ecosystem following the collapse of the FTX exchange.

“I’ve extended my prediction for another six months, $250,000 is still my number.” Draper said in an interview with CNBC.

To make Draper’s prediction come true, Bitcoin would need to increase in price by more than 1,370% from its current price.

To date, Bitcoin has plunged by more than 60% since the beginning of the year.

On the other hand, major tokens continue to hit yearly lows as tighter monetary policy from the Federal Reserve and a chain reaction of bankruptcies at major crypto firms in the industry, including Terra, Celsius and FTX, have put intense pressure. about token prices.

The recent collapse of major exchange FTX has fueled a previously severe liquidity crisis in the crypto industry. In addition, the exchange “Gemini” and the crypto lender “Genesis”, are among the crypto companies that will be affected by the consequences of the insolvency of FTX.

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Tim Draper and his successful bet on Bitcoin

Last week, celebrity investor Mark Mobius indicated in an interview that Bitcoin could fall to $10,000 within the next year, a drop of more than 40% from its current price. Additionally, Mobius Capital Partners co-founder Mark Mobius called this year’s drop below $20,000 a “positive.”

However, Tim Draper is convinced that Bitcoin, the main cryptocurrency worldwide, will increase in this new year 2023.

“I look forward to a flight to a quality, fully decentralized crypto ecosystem like Bitcoin, with some of the weaker tokens becoming relics.” Draper said in the interview with CNBC.

Today, Tim Draper, the founder of Draper Associates, is one of Silicon Valley’s most famous investors, placing huge successful bets on technology companies like Tesla, Skype and Baidu.

Notably, in 2014, Draper acquired 29,656 BTC seized by US Marshals from the Silk Road Market for $18.7 million. During that year, Draper predicted that the price of BTC would rise to $10,000 in three years, by 2017 Bitcoin had already risen to close to $20,000.

However, some of Draper’s other bets haven’t panned out as well. One such example is Draper’s investment in Theranos, a healthcare startup that falsely claimed that he could detect disease with a few drops of blood. However, after various investigations, Elizabeth Holmes, the founder of Theranos, was sentenced on November 18 to 11 years in prison for fraud.

BTC is about to explode

Notably, according to Drapper, there is currently a massive untapped demographic in the crypto asset sector, women.

“My guess is that since women control 80% of retail spending and only 1 in 7 BTC wallets are currently in the hands of women, the dam is about to burst.” Draper expressed.

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The cryptocurrency market has had a gender disparity problem for many years. According to various surveys carried out, male investors in crypto assets double that of female investors.

“Retailers will save approximately 2% on every purchase made in Bitcoins versus dollars,” Draper said. “Once retailers realize that 2% can double their profits, Bitcoin will be ubiquitous,” he added.

Currently, major electronic payment companies, such as Visa and Mastercard, charge fees of up to 2% for each transaction made. Therefore, Bitcoin offers an alternative for people to pay without high fees and avoiding intermediaries.

However, using BTC for daily spending is difficult. This is because its price is very volatile and the token is not widely accepted as a traditional payment asset.

“When people can purchase their food, clothing, housing, and personal items in BTC, fiat currencies will be of no use.” Draper indicated.

Additionally, according to Draper, the next reduction in Bitcoin rewards for miners, in 2024, will also boost Bitcoin.