In an interview with Fox Businesses in 2014, billionaire investor Tim Draper predicts that the bitcoin price will exceed $ 10,000 in three years. At the time of writing, the price of bitcoin is $ 9,650 and is expected to reach $ 10,000 by the end of 2017.
Base of Draper's Prediction
Since 2014, Draper is one of the most active investors in the cryptocurrency market, alongside Barry Silbert of Digital Currency Group. Over the last three years, Draper has funded regional and international bitcoin companies, including the $ 1.6 billion Bitcoin and Coinbase brokerage platform, Korbit, a $ 160 million South Korean cryptocurrency exchange, and Coinplug, bitcoin service provider.
Three years ago, after participating in various auctions to buy lots of tens of thousands of bitcoin, Draper's focused on building the necessary infrastructure for that the Bitcoin market thrives and grows at an exponential rate. Its investment in companies such as Coinbase and Korbit played a vital role in the rapid growth of the US and South Korean bitcoin markets, the second and third largest bitcoin markets behind Japan.
Apart from a $ 120 million profit that he got by buying 30,000 bitcoins in bulk in 2014, Draper was one of the most successful investors in the Bitcoin and Cryptocurrency sector over the last three years. success in both direct investment in bitcoin and in venture capital financing of bitcoin startups.
In the early days of Bitcoin and the cryptocurrency market, until 2014, the future of the cryptocurrency sector was uncertain, given Bitcoin's performance from 2013 to 2014 However, many early investors in Bitcoin such as Draper firmly believed in Bitcoin as the next global store of value and digital currency.
"[I’m] very excited about bitcoin and what it can do for the world.Bitcoin is a transformation as important for the finance and trade industry as the Internet For information and communication, if bitcoin were here in 2008, it would be a source of stability for our global economy Everyone should buy a bitcoin Every investor who is a trustee should at least be partially involved in Bitcoin because it's a hedge against all other currencies.There is an entire ecosystem under construction that will make trading a lot easier with a lot less friction and safer, "Draper said in 2014.
Therefore, for Draper, a medium-term goal of $ 10,000 of bitcoin was not an ambitious target to begin. Draper was expecting the price of bitcoin to reach a few hundred thousand dollars, especially with the arrival of large financial institutions and tens of billions of dollars of institutional money on the bitcoin market .
Bitcoin in 2018
Throughout 2017, the stock market valuation of bitcoin rose from $ 10 billion to $ 160 billion solely through the adoption of ordinary consumers and occasional investors. Billions of institutional dollars from hedge funds like Man Group and Fidelity will trigger a further rise in the price of bitcoin in the near term.
Featured image from Flickr / Web Summit.