Bitcoin has been part of billionaire Tim Draper’s investment portfolio for some time. Draper first came into contact with Bitcoin in 2011 when Peter Vincennes convinced him to buy the digital asset. Draper had purchased $ 250,000 worth of BTC, which he subsequently lost after the crash of the now-defunct Mt. Gox exchange where Draper had kept his coins.
Nevertheless, the billionaire was not deterred. When another opportunity arose in the form of US marshals auctioning off bitcoins confiscated from criminals, Draper took the opportunity. At the auction, Draper had bought 29,656 bitcoins at $ 632 apiece, totaling $ 18.74 as the coins sold for $ 14 above the current market price.
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The investor has never given up his belief in the future of cryptocurrencies, especially Bitcoin. Even made some very optimistic predictions about the price of the asset in the years to come.
Draper predicts Bitcoin to be $ 250,000 by 2022
The billionaire first made this prediction in 2018. Back then, the price of the digital asset was trading below $ 10,000, so that didn’t seem as believable as it could be today. But Draper never wavered in his prediction.
The driving factor behind this prediction was that the billionaire believes that Bitcoin will become an accepted means of payment everywhere. Another important factor lies in the fact that the supply of BTC is limited. This self-induced scarcity of digital wealth leads the billionaire to believe the price will keep rising, saying, “because there are only 21 million of them.”
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Only one thing has changed in Draper’s price prediction for Bitcoin. The billionaire had adjusted the schedule for his prediction by further postponing it to late 2022 or early 2023. But the price prediction remains unchanged at $ 250,000.
Trends get BTC on track for $ 250,000
Venture capitalist Tim Draper was at the Benzingas Crypto Festival to talk about the number 1 cryptocurrency. Draper noted some trends that he believes will be the driving force behind Bitcoin hitting $ 250,000 in 2022. Widespread adoption was one of those trends. He noted that at some point people may be able to use BTC the way they currently do with fiat currency. “One that happens,” said Draper, “a switch flips in people’s minds.”
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A second trend that the billionaire is seeing is the rate of inflation, which is driving Bitcoin towards this price prediction. With governments printing money all the time, people worry about the future of their savings. This will push more investors into BTC to hedge against the inevitable high rate of inflation that will follow boundless money printing.
The increase in bitcoin use in retail spending should be even higher, Draper said. With women making up about 80% of total retail spending, Draper sees women asking for more ways to pay with Bitcoin. Explains that the number of women investing in Bitcoin has increased tremendously, from one in 14 BTC wallets owned by women to one in three BTC wallets currently owned by women.
BTC price still trading north of $47,000 | Source: BTCUSD on TradingView.com
When asked when he wanted to sell his coins, the billionaire replied, “Why should I want to sell the future currency for the past currency? I just can’t think of anything more important to humanity than this. ”On Draper’s $ 250,000 forecast for the price of the digital asset in late 2022 or early 2023, he said,” I think we’re on the right track. ”
Featured image from AtoZ Markets, Chart from TradingView.com