If you have been in the Crypto market this year, then you know that it has been horrific. Currently, the currency was 80% short of what it was in December 2017 when it reached its peak of $19,000. And just when you thought Thanksgiving would be any better, it plunged 40% of its dollar value in only four days. But these shortcomings are yet to shake the Crypto’s biggest supporters.
Tim Draper is one of them. He is a venture capitalist and a third generation startup investor who has invested in many startups that have since become household names today. Turns out he is also a seer by profession. In 2014, draper predicted that bitcoin would reach $10,000 by the end of 2017. And as you know, his predictions were incredibly accurate.
And now he is back again, with yet another prediction. This time he is all in with $250,000 for the currency by 2023. No kidding. Which begs the questions, is he looking at the same figures this year? And is he out of his mind?
Tim Draper was being interviewed by Mike green on the financial news site Real Vision.
How His Math Works
He is making a huge assumption that bitcoin would replace 6% or $5.2 trillion of the $84 trillion in government-backed currencies that are in circulation. By dividing the figure by 21 million bitcoins –which represents the number that can be mined, you get $250,000.
According to Draper, this would happen when people start treating bitcoin as a real currency instead of an idle investment that they buy with dollars.
Recently, there have been inventions of bitcoin-related technologies. It’s only a matter of time before people start using them. Tim Draper gives a timeline of 5 years before these changes start to happen. According to Tim, a huge shift will be seen and no one will want dollars anymore.
Bitcoin Is More Stable Than The Government Issued Money Even During Political Turbulence
While it may be true that the currency is extremely volatile since its creation, other non-dollar fiat currencies have actually done worse. With the example of the Argentine’s peso, it has spiralled down thrice in 30 years. This is as a result of government disasters, currency manipulation, hyperinflation etc. that happen once every decade.
In contrast to crypto, volatility is generally upwards whereas political currencies are volatile downwards.
Blockchain Is More Secure Than A Bank
Banks get hacked all the time and money lost, blockchain has never been hacked, thus, being more secure than the dollar. Its only vulnerability is in the crypto exchanges where your login information may be stolen.
As he ended the interview, Tim Draper disclosed his goal of raising an all bitcoin venture capital fund. His every investment, profit payout and paychecks would be transacted in bitcoins with no accounting fees. As for now, the technology just isn’t there. The little tech that there is would make it very complicated.