Billionaire Tim Draper is bullish on Bitcoin, predicting that it will hit $250,000 by the end of 2022
Despite major cryptocurrencies collapsing substantially just weeks ago, billionaire venture capitalist Tim Draper has indicated he will adhere to his earlier projection that Bitcoin will hit $2,50,000 (approximately Rs. 1.85 crores) by the end of 2022 or early 2023. Draper, who has invested in Bitcoin, believes the world’s most popular cryptocurrency is headed in that direction and will earn more acceptance over time. When Bitcoin was trading at $8,000 in 2018, he made the prediction for the first time (roughly Rs. 5.9 lakhs).
Following harsh criticism for encouraging up fossil fuel use and a Chinese restriction on cryptocurrency trading, major cryptocurrencies lost a large portion of their value in the recent market fall. Bitcoin, which has seen a stratospheric climb this year, reached an all-time high of about $65,000 (approximately Rs. 48 lakhs) before plummeting by more than 50% this month.
Draper told CNBC, “I think I’m going to be right on this one,” adding, “I’m either going to be incredibly right or really wrong.” I’m rather certain it’s heading in that direction.”
Bitcoin was trading at $39,000 at the time of writing.
Draper’s projected date is still over a year away, but he believes his forecast will come true since more people will be trading cryptocurrencies by then. “In a year and a half, all retailers will be on OpenNode (a Bitcoin payment processor), and everyone will take Bitcoin,” he predicted.
Currently, few businesses accept cryptocurrency payments directly or through third-party digital wallets. Because only 21 million Bitcoins are available to be “mined,” Draper’s projection is based on a projected increase in demand as more people use them. There are currently around 18 million Bitcoins in circulation.
Draper, 63, is a seasoned venture capitalist who made early investments in Twitter, Skype, Tesla, and SpaceX to amass his fortune.
Elon Musk, the CEO of Tesla and SpaceX, has previously stated that Dogecoin has potential because “it makes us all smile,” but that engineers are not working on it and are instead focused on Bitcoin. Dogecoin’s pricing in India was Rs. 23.7 at the time of publication.
Bitcoin received its first upgrade in four years last week. It will go into effect in November and is expected to make transactions more efficient and provide more privacy.
Despite its large energy usage, as Musk also mentioned, Draper believes Bitcoin will be a big role in all financial activities for the next two to three decades.
“First and foremost, Elon is one of the world’s most bright men, if not the most clever, but he got this one wrong,” Draper said last week.