American venture capital investor Tim Draper, an early backer of Tesla, Skype, and SpaceX, is one of the most high-profile Bitcoin investors. With absolute confidence that bitcoin is the future currency, Draper announced that he predicts the bitcoin price will reach $250,000 by 2022.
Tim Draper Predicts Bitcoin at $250,000 By 2022
Tim Draper has thrown a cryptocurrency celebration on Thursday, called Blockparty, not to be confused with British indie rock band Bloc Party. The party poster, which was placed in front of his entrepreneurship program, Draper University, made a bold statement: “Tim Draper Predicts Bitcoin @ 250K By 2022”.
The billionaire investor has bought 30,000 Bitcoin in a US Marshals auction in 2014. That amount of cryptocurrency is currently worth about $240 million. If his prediction turns out to be correct, Tim Draper can expect his Bitcoin portfolio to be valued at $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!”
Tim Draper did not disclose the method he used to calculate his forecast of $250,000 by 2022. A “somewhat” close number was provided by Horizon Kinetics’ 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 abovementioned interview with Sharad Kharé, Draper said he expects that, in five years, whoever tries to pay in fiat currency will be laughed at. This adds to his 2022 prediction. A world that will laugh at someone trying to pay in fiat currency is a world where Bitcoin is very likely established as the ultimate value investment. It might be hard to imagine such a revolutionary change within the next four to five years, but Tim Draper clearly does. The same way he imagined Tesla, Skype, and SpaceX, to be an invaluable part of our future.