Editor's note: Bitcoin's ride higher is just getting started. In fact, as you'll find out today, investors could be sitting on a potential 10-bagger right now...
As you may know, Bitcoin is a cryptocurrency. "Cryptos" are digital currencies that the government can't control or dilute. They're alternatives to paper money. Thanks to our government's radical policies, cryptos are becoming more popular by the day.
Today, we're handing the Dispatch over to our good friend Greg Wilson, analyst for The Palm Beach Letter. Greg is an expert on cryptocurrencies. Below, he shows why Bitcoin could easily shoot past $10,000...
Tim Draper knows how to make money off bitcoin…
Draper is one of the most successful venture capitalists in the world. In 2015, the World Entrepreneurship Forum named him “Entrepreneur for the World.”
He once had a 10% stake in the video and text messaging application Skype. In 2005, eBay bought Skype for $2.5 billion. (Microsoft later bought Skype in 2011 for $8.5 billion.)
But his wildest investment came in 2014.
That’s when he bought 30,000 bitcoins at auction held by the U.S. Marshals Service. The bitcoins were seized by federal authorities from a black market website shut down by the FBI.
The value of the digital currency spiked immediately after the sale… And the 30,000 lot was worth more than $19 million around the end of the auction.
To date, he’s already made $16 million on that investment.
Few have profited more from bitcoin and its underlying blockchain technology than Draper. In the last three years, he’s made several investments in blockchain startups.
So when he predicted bitcoin would reach $10,000, I took notice.
Here’s the thing… Draper’s not alone.
Bobby Lee is CEO of BTCC, China’s first bitcoin exchange. Today, it’s one of the largest bitcoin exchanges in the world.
Lee predicts bitcoin could reach $11,000 by 2020.
If you want a more conservative estimate, South African entrepreneur Vinny Lingham believes it will hit $3,000 by the end of 2017.
(Lingham is a participant on South Africa’s version of the reality show Shark Tank and made the show’s first-ever bitcoin investment.)
As of Friday, bitcoin traded around $980. Even if we just base our prediction on the low end of $3,000, it could more than triple this year.
But I believe bitcoin will settle somewhere between Draper’s and Lingham’s projections.
I crunched the numbers and will show you three reasons why bitcoin could be worth at least $4,200 in three years.