Tim Draper, an American Venture Capital Investor and early supporter of Tesla, Skype, and SpaceX, is one of the highly-regarded Bitcoin investors, believes in the future of the cryptocurrency. Draper announced his prediction the Bitcoin price will reach $250.000 by 2022.
With no confusion with the British indie rock band Bloc Party, Tim Draper has thrown a cryptocurrency celebration on Thursday, called Blockparty. The part poster which made a bold statement: “Tim Draper Predicts Bitcoin @ 250K By 2022” was placed in front of his entrepreneurship program, Draper University.
He has bought 30.000 Bitcoin in a US Marshals auction in 2014, which is currently worth about $240 million. If his prediction comes true, Tim Draper will see his portfolio worth $7.5 billion by 2022. Draper has said that he will never sell it in exchange for fiat money: “That’s like saying I’m going to take the present and future and turn it into the past. I’m not an antique buyer”, he told documentarian Sharad Kharé in a recent interview.
He announced on Twitter the bold prediction, but a typo jittered his social media following: “Serious winds (of change) at our block (chain) party last night. Predicting bitcoin at $25k by 2022”, he first wrote before correcting the number by adding an extra zero to the future bitcoin price. “Oops! I predicted $250k in 2022. My tweet last night was missing a zero. $250k is the number!”
The method he used to calculate his forecast of $250.000 by 20222 was not disclosed. A “somewhat” close number was provided by Horizon Kinetic’s Murray Stahl, who argued that Bitcoin could be worth the value of all the currency in the world because fiat money can be “debased,” but there will be only 21 million Bitcoins ever made. This would amount to approximately $361.000 per Bitcoin, according to Barron’s estimate that the cumulative value of the world’s coins and banknotes is $7.6 trillion.
In the interview with Sharad Kharé, he stated that he expects in five years, whoever tries to pay in fiat currency will be laughed at. A world where someone trying to pay in fiat currency will be laughed at is a world where Bitcoin is very likely to be established as the ultimate value investment. However, it sounds hard to take place such a revolutionary change within the next five years. But Draper clearly does. The same happened in the case of Tesla, Skype, and SpaceX.