Billionaire Tim Draper: 'Bitcoin Will Be About a 5% Market Share of the Earth'

Francisco Memoria

Billionaire venture capitalist Tim Draper, who’s a well-known bitcoin bull, has recently claimed he believes bitcoin will “be a 5% market share of the earth,” predicting the flagship cryptocurrency will be one of the most valuable assets in existence.

Speaking to FOX Business’ Liz Claman during an interview on “Countdown to the Closing Bell,” from the SALT conference in Las Vegas, Draper noted he believes in four years the flagship cryptocurrency will be far more valuable than it is today as it’s a “better currency, decentralized, open, [and] transparent.”

I am a believer that in four years, something like that, bitcoin will be about a 5 percent market share of the earth

Draper, who has in the past predicted bitcoin will hit $250,000 by 2022, made his bullish prediction after being asked about the 30,000 bitcoins he won from the U.S. Marshals Service auction back in 2014, which had been seized from the now-defunct darknet marketplace The Silk Road.

At the time Draper won the auction, he paid $632 per coin, and the coins were worth a total of $19 million. At press time, one bitcoin is trading close to the $6,300 mark, meaning his 30,000 BTC – if he still has them – are worth nearly $190 million.

In 2014, Draper also predicted BTC would hit $10,000 “in three years.” The flagship cryptocurrency hit the $10,000 mark in November of 2017, and subsequently shot up to a near $20,000 all-time high before dropping to a $3,200 low in December of last year, according to CryptoCompare data.

During his recent interview with FOX Business’ Liz Claman, Draper noted he would eventually like to create a fund using bitcoin and blockchain technology, as it would help him eliminate costs associated with accounting and bookkeeping.

Draper has, last month, also revealed he believes bitcoin is a better store of value than gold, and predicted OpenNode, a multi-layered, Lightning Network-enabled payment processing platform will be widely adopted in the foreseeable future. Earlier, he argued bitcoin will create “much more fluid markets,” and that it’s the “currency of the future.”

BitMEX CEO: 'Bitcoin Volatility and Volumes to Nose Dive' for Year of the Rat Weekend

Siamak Masnavi

On Thursday (January 23), Arthur Hayes, Co-Founder and CEO of crypto derivatives exchange BitMEX, made a prediction for this coming weekend: he expects both Bitcoin volatility and trading volumes to "nosedive".

The Zodiacal Rat is the first of the repeating 12-year cycle of animals which appear in the Chinese zodiac, constituting part of the Chinese calendar. 2020 is the Year of the Rat; it starts on 25 January 2020 and ends on 11 February 2021.

The first day of the Chinese New Year -- known as the Spring Festival or the Lunar New Year -- falls on Satuday (January 25) this year. The celebrations last until February 8, when the Lantern Festival takes place.

According to CryptoCompare, around 02:44 (UTC) today, Bitcoin was trading around $8,569:

BTC-USD 24 Hour Chart on 23 Jan 2020.png

This time is roughly when the BitMEX CEO decided to make his prediction for this coming weekend:

Presumably, Hayes feels that there will be less trading in Bitcoin within the Chinese community due to the fact people will be busy with Chinese New Year activities, such as putting up decorations, having a reunion dinner with their family on New Year's Eve, fireworks, giving/receiving gifts.

Some members of the crypto community on Twitter, such as Gabor Gurbacs, the digital asset strategist/director at VanEck/MVIS, found the connection between Bitcoin and "Rat" amusing (having recalled legendary billionare investor Warren Buffett comments on 5 May 2018 about Bitcoin being "rat poison squared"):

And a few seem to think that it is not quite right for Hayes to be worrying about the Bitcoin price (and possibly the effects of Bitcoin's price action on the profits of his crypto exchange) at a time when Novel Coronavirus (2019-nCoV), a new strain of coronavirus, is rapidly spreading through China:

If Hayes' prediction of reduced Bitcoin trading activity (starting this weekend) comes true, it might, this year, be more due to the sombre mood in China and what the authorities over there are doing to contain the spread of the coronavirus:

As for the effect of the Chinese New Year on the price of Bitcoin, popular macroeconomist and crypto analyst/trader Alex Krüger does not expect this event to act as a positive or negative catalyst:

 

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