Billionaire venture capital investor, Tim Draper, recently predicted that bitcoin (BTC) and other cryptocurrencies will have a market capitalization of $80 trillion within the next 15 years. Draper compared the gradual growth and adoption of the internet to the (current) ongoing development of blockchain-based digital assets.
Explaining how the internet has evolved over the past few decades, the Stanford University graduate said:
The internet started in the same way, it came in big waves and then it kind of came crashing down, and then the next wave comes concentrated but much bigger, and I suspect the same thing will go on here (with cryptocurrency and blockchain).
Draper added that the current crypto bear market can largely be attributed to digital currencies being a new concept that people are still trying to understand. However, the Harvard MBA graduate noted that many have realized and acknowledged the potential of cryptocurrencies.
Realizing Cryptos Are "Here To Stay"
As CryptoGlobe reported, Europe’s finance ministers recently came to the conclusion that digital assets “are here to stay.” According to Draper, cryptos and their underlying blockchain technology will transform how many existing industries operate.
The experienced investor remarked:
I think it’s going to have such a transformative effect on industries that we never even imagined would be transformable. The internet went after industries that were $10-100 billion dollar markets, cryptocurrency will go after trillion dollar markets – these are finance, healthcare and insurance, banking and investment banking, and governments.
$250,000 Bitcoin Price Prediction
As covered, Draper has predicted that bitcoin’s price will hit $250,000 by 2022. Notably, the venture capitalist accurately predicted in September of 2014 that the flagship cryptocurrency would surpass the $10,000 mark in 2017.
In May, Draper explained why he thinks bitcoin’s price will hit $250,000 as he noted that:
Cryptocurrencies will eventually grow to maybe $100 trillion and fiat currencies will fall from $80 trillion to maybe down to $30 trillion because we won't really want to use the currency that's not as flexible or global or decentralized or secure as these new currencies are. And so people will move away from fiat currency.
In June, during an interview with Adryenn Ashley, the founder of blockchain-based dating platform Loly, Draper elaborated further on why he thinks the crypto market will expand considerably.
"Frictionless, Decentralized, Global" Currencies
He said that currently fiat currencies dominate the world’s financial system, however,
my projection is that the market will probably double, and the reason it will double is money will move faster with cryptocurrency, and slowly but surely, cryptocurrency will overtake the fiat currency because it's just better currency: it's frictionless, it's decentralized, it's global.
Draper, who’s known for his successful investments in Skype, Tesla, and Chinese multinational tech company Baidu, also noted there are excellent growth and adoption opportunities for cryptocurrencies in countries such as Indonesia because many of its citizens don’t have access to banking services.