Billionaire Tim Draper still predicts bitcoin will reach $250,000

Billionaire venture capitalist and Bitcoin investor Tim Draper is sticking to his prediction that Bitcoin will hit $ 250,000 by late 2022 or early 2023, despite the wild fluctuations in the value of the cryptocurrency and the turmoil surrounding its polluting energy consumption.

“I think I’ll be right here,” says Draper CNBC does it.

Draper first made the bold price prediction in 2018At the time, Bitcoin was trading around $ 8,000, according to Coinbase.

“Either I’ll be really right or really wrong [but] I’m pretty sure it’s going in that direction, “says Draper.

That’s because Draper believes the currency will “be used a lot more by then.”

“Give about a year and a half and the retailers will all be on Opennode [a bitcoin payment processor]so that everyone accepts Bitcoin, “predicts Draper.

Currently, few large companies accept Bitcoin directly or indirectly through a third-party digital wallet app, including Microsoft, PayPal, overstock, Whole food, Starbucks and Home Depot. And many experts see Bitcoin as a store of value like gold rather than currency.

“Then I think beyond that [bitcoin] because there are only 21 million of them, “says Draper. Because of his code, there are only 21 million Bitcoin can be “mined”. So far more than 18 million Bitcoin are already in circulation.

Draper, 63, who made his fortune with early investments in Twitter, Skype, Tesla and SpaceX (to name a few) wouldn’t share how much Bitcoin it holds or whether it has invested in other cryptocurrencies.

“There must be something to it Dogecoin because it makes us all smile but no engineers are working on it, “says Drapers. (Though Elon Musk tweeted in May he is working with” Doge developers to improve the efficiency of system transactions. Potentially promising. “)

“I’m more focused on those where people dedicate their lives to improving the currency.”

Draper says most engineers are currently working on improving Bitcoin. Last week, Bitcoin received its first upgrade in four years called Taproot. The change is slated to go into effect in November and is supposed to mean more privacy and transaction efficiency. It is also intended to unlock the potential for smart contracts on the Bitcoin blockchain. CNBC reported.

Bitcoin “is a bit like Microsoft [in] the software world or Amazon [in] of the e-commerce world, “says Draper. He believes that Bitcoin will be the center of all financial activity for the next two to three decades.

However, the value of Bitcoin is volatile and there are concerns about its enormous energy consumption. For this and other reasons, experts recommend investing only as much money in Bitcoin as you can afford to lose.

Hundreds of billions of dollars were removed from the cryptocurrency after Elon Musk tweeted in May that he was suspending bitcoin purchases from Tesla over environmental concerns.

Musk tweeted this on Sunday Tesla would accept Bitcoin again if at least half of it can be broken down with clean energy.

“Elon is first and foremost one of the most brilliant men in the world … perhaps the most brilliant, [but] he got it wrong, “says Draper. (A Tesla spokesman didn’t immediately respond to CNBC Make It’s request for comment.)

Draper points this out large banks have their own environmental problems.

Bitcoin rose more than 7%, according to Coinbase, and approached $ 40,000 on Monday. It hit an all-time high of $ 64,829 in April before hitting a low of $ 30,000 in May after a 30% intraday crash. according to CNBC.

It’s not the first time, Draper predicted the rise in the price of Bitcoin. in the 2014When bitcoin was trading at around $ 500, he said that bitcoin would cross the $ 10,000 mark in three years. Bitcoin hit above $ 10,000 in December 2017 and hit a high of more than $ 18,900 on December 19, before falling back to a low of $ 7,270 in early 2018 Coindesk.

In 2014, Draper bought nearly 30,000 Bitcoins seized by US Marshals Services from the now defunct online black market Silk Road.

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