Bitcoin Price

Legendary VC Tim Draper Still Crazy Bullish on Bitcoin: Expects Rally to $250k

Legendary venture capitalist Tim Draper explained why he thinks Bitcoin is still on track to reach a price point of $250,000
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While the recent volatility has had some investors running scared, the cryptocurrency and blockchain’s space’s most fervent advocates and prominent investors remain committed to the Bitcoin cause.

Case in point: on Monday, when he was invited to sit with CNBC’s show “Squawk Alley,” legendary venture capitalist Tim Draper explained why he thinks Bitcoin is still on track to reach a price point of, as crazy as this may sound, $250,000 in the coming years.

Should this rally take place, BTC will surge 2,600% from the current price of $9,600 and will have a market capitalization of $4.5 trillion.

Bitcoin Still on Track for Long-Term Explosive Growth, Claims Prominent Venture Capitalist

For most of its first five years in existence, Bitcoin was deemed a joke by many in traditional investment circles and in Silicon Valley, with many basing their theses on the cryptocurrency on its use in the Silk Road, the Mt. Gox hacks, and other debacles that damaged the “friendliness” of cryptocurrency.

But, this started to change when prominent companies and investors began to siphon money into the cryptocurrency markets.

One of these trailblazing investors was Tim Draper. Draper, for those unaware, is an extremely prominent venture capitalist that has made early-stage investments in companies such as Baidu, Hotmail, Tesla, SpaceX, AngelList, Twitter, Robinhood, Coinbase, Twitch, and many others.

The investor also made waves early on in Bitcoin’s story when he purchased millions of dollars worth of cryptocurrency when the U.S. Marshals Service auctioned off BTC seized from the Silk Road operation.

While he had many chances to sell off his stash at prices an order of magnitude larger than where he bought BTC at, he has held his coin, asserting that this asset is on track to rally even higher.

In the CNBC segment, he stuck to his long-held prediction Bitcoin will hit $250,000 in 2022 or 2023;

I’m still holding to my prediction. I think Bitcoin will hit $250,000 in 2022 or at the beginning of 2023 , and that is a big move from where it is here.

As to why he thinks this is going to be the case, Draper mentioned Bitcoin as a likely safe-haven investment amid the “interesting ride” he thinks markets will take in the coming months and years, presumably referencing macro trends like the coronavirus outbreak that is taking grip of the world, the political climate favoring more fringe candidates, and geopolitical conflicts and even civil tensions.

He added that how he sees it, Bitcoin is currently on track to become the “currency of choice” of the future, noting that once scaling and payment solutions get integrated, BTC will effectively be a no-brainer over traditional payment rails like Visa (and fiat in general).

Not Entirely Irrational, Models Predict

While Draper’s price target for Bitcoin seems absolutely astronomical at the moment, there are other analysts and a key price model that corroborate the existence of a $250,000 Bitcoin in the near future or at least a price point around that region.

What this writer is referring to is the stock-to-flow model of Bitcoin’s price by PlanB, a pseudonymous quantitative analyst that works at a European institution.

His model — which has been backed tested to an R squared of 95% (which means extremely accurate in statistics) and confirmed to be cointegrated with BTC’s price (rather than a coincidence) — predicts the “fair” price of Bitcoin will reach somewhere from $55,000 to $100,000 after May 2020’s halving.

Yes, this isn’t $250,000, but PlanB has confirmed in a tweet that Bitcoin has overshot the model by hundreds of percent in the past, adding that there’s a good chance BTC could reach $300,000 (and potentially beyond) in the next cycle, before returning lower prior to the next halving in 2024.



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I am a writer who has been following the cryptocurrency space since 2013. My insights and interviews have been featured in leading publications in the industry such as LongHash, NewsBTC, and Decrypt. When I am not writing, I work as a team member of the EXODUS division of HTC, a Taiwanese electronics company. I own a small amount of Bitcoin. Contact NickC@blockonomi.com

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