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Tim Draper Claims that Bitcoin Price will Hit $250.000 by 2022; Why?
Editorial Team

Tim Draper is a billionaire venture capitalist. He is one of the cryptocurrency’s biggest bulls. Even during the first half of 2018, when the Bitcoin price has sunk more than 67 % from its all-time high, he did not change his mind.

As reported by CCN, he has predicted that the Bitcoin price would reach $250,000 by 2022, far away from his estimation of $650 per coin that he had paid in 2014 when he won nearly 30,000 BTC from the US Marshals Service in the famous Silk Road auction.

Draper speaking with financial publication The Street said that the recent market downward movement has not influenced negatively his confidence in the forecast.

“Price-wise, we’ll continue to see Bitcoin move higher. I’ve revised my estimate up to $250,000 four years out, so we’ll see Bitcoin trade around the $250,000 mark in 2022.”

Draper bases his bet on the expectation that cryptocurrencies – he has invested in more than Bitcoin – will “increase the velocity of money” such that the global currency market will reach $140 trillion within the next ten years.

“I expect that since cryptocurrencies will increase the velocity of money, the current $86 trillion global markets for currency will grow to be about $140 trillion in the next 10 years and that growth will be in crypto. In fact, I estimate that fiat currencies will actually decrease in use, and that crypto will become as much as $100 trillion of that market. I expect Bitcoin to be about 10% of that market, or $10 trillion. There is a lot of room to grow there.”

Draper is also behind a high-profile plan to divide California into three states (the initiative will appear on the ballot this November), according to CCN.com. His expectation is that the world is on the cusp of a massive turn to adopting cryptocurrencies, not just a store of value, but as a means for everyday payments.

“I believe that in about four years there will be a big change when people start paying in cryptocurrency. It used to be the case that the Bitcoin block was too slow to make small transactions, so it was better as a store of value. But what is happening is that as time goes on, more technologies make it easier for us to use,” he said, referencing second-layer scaling solutions such as the Lightning Network and altcoins such as bitcoin cash.

“Fiat currency will eventually become as passé as trying to pay for coffee with pennies.”

Draper insists on holding his coins regardless of where the Bitcoin price end ups. That, he marked would be returning to the past.

“I have no interest in selling my Bitcoin. What would I sell it into anyway? Moving from crypto to fiat is like trading shells for gold. It is reverting to the past,” he concluded. “I’m thinking long term I’ll use it, spend it, invest it, or just keep it.”

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