Billionaire Investor Tim Draper Expects Bitcoin To Reach $250,000 By 2022

Siamak Masnavi
  • Venture capitalist billionaire Tim Draper predicts bitcoin's price will hit $250,000 by 2022.
  • Draper correctly predicted, in September 2014, that the cryptocurrency's price would go from around $400 to $10,000 in three years.

On Thursday, April 12, 2018 billionaire venture capitalist Tim Draper, the founder and managing director of venture capital

firm DFJannounced at the Block (Chain) Party at Draper University (in San Mateo, California) that he expects the price of bitcoin (BTC) to reach $250,000 by 2022:

I'm thinking $250,000 a bitcoin by 2022... Believe it. They're going to think you're crazy, but believe it. It's happening and it's going to be awesome!

Tim Draper

Yesterday morning he tweeted about his prediction at the party:

Unfortunately, as you can see, he mistyped $250k as $25k, which naturally caused quite a bit confusion. Later that day, he corrected himself in a follow-up tweet:

Tim Draper is a key figure in the blockchain and cryptocurrency space due to his many venture capital investments in Silicon Valley.  His most famous investment was made back in June 2014, when his winning bid at an auction held by the US Marshalls Service allowed him to acquire 29,656 bitcoins that had been seized from the now defunct online black market Silk Road. The BTC price at the time was at around $600.

Three months later, in September 2014, in a TV interview on Fox Business, the billionaire made the following prediction: "$10,000 per bitcoin in three years." Taking into account one BTC was worth around $413 at the time, his prediction seemed off. Rouhgly three years later, on 29 November 2017 to be precise, the price of bitcoin crossed $10,000 for the first time.

At the time of writing, according to CryptoCompare data, the price of one bitcoin is $8,044. Once again, his prediction seems overly bullish, but only time will tell whether he is right or not.

It is worth noting that Draper isn’t the only billionaire that’s bullish on bitcoin. Cameron Winklevoss, who together with his twin brother Tyler launched the Gemini cryptocurrency exchange, said at a CNBC-hosted chat at the Milken Institute's MENA Summit on February 7, 2017 that he expected bitcoin's price to appreciate by 30-40 times within the next 10-20 years. This is how he explained his faith in bitcoin:

Taking bitcoin in isolation … we believe bitcoin disrupts gold. We think it's a better gold if you look at the properties of money. And what makes gold gold? Scarcity. Bitcoin is actually fixed in supply so it's better than scarce … it's more portable, its fungible, it's more durable. Its sort of equals a better gold across the board...

Cameron Winklevoss

 

Bitcoin’s Crash Led to Over $1.6 Billion in Liquidations on BitMEX

The price of Bitcoin dropped from over $7,400 to a $4,100 low in a 24-hour period, before recovering to over $5,500 at press time. The price crash saw over $1.6 billion in liquidations on crypto derivatives exchange BitMEX.

According to data from Datamish, a total of $1.17 billion worth of longs were liquidated yesterday, March 12, the so-called “Black Thursday” that saw the price of BTC start to crash. The cryptocurrency wouldn’t hit its $4,100 low until today at 02:00 (UTC), which means the liquidations kept on going, with $485 million liquidated so far today.

Notably, the cryptocurrency’s recovery has also taken a toll on leveraged short positions. While on the Black Thursday $14 million in shorts were liquidated, so far today an additional $2 million were wiped out. In total, over $1.6 billion in leveraged positions were liquidated on BitMEX.

Bitcoin's priceSource: CryptoCompare

Other cryptocurrencies accompanied Bitcoin’s price drop, which saw the cryptocurrency space lose around $93.5 billion in 24 hours. Behind the price drop are believed to be various factors, including a significant drop in all major U.S. equity indices, which went into bear market territory for the first time in a decade this week. The Dow Jones Industrial average fell by 10%, the most since the Black Monday in 1987. These drops continued even after the Federal Reserve announced a simulative bond-purchase plan.

On top of this, the World Health Organization has declared the COVID-19 a pandemic, and in response to the situation U.S. President Donald Trump revealed a travel ban from Europe to the U.S., which excluded the United Kingdom.

The sell-off affected the safe haven asset narrative Bitcoin had, as investors moved their funs to U.S. Treasuries when things went awry. The drop, however, is believed to have been inflated by the long squeeze it caused, as it added to the downward pressure.

Featured image via Unsplash.