Bitcoin Evangelist Tim Draper Says Bitcoin Will Hit $250,000 By 2023
It’s just another day in the cryptocurrency market, where buying and selling digital assets, trading specialized securities, and making one’s way through regulations is just a part of the process.
What makes the day different than the rest is Bitcoin evangelist Tim Draper’s prediction about the world’s prime cryptocurrency — or rather, his retake on an original prediction that has made him quite famous in the financial sector.
The investor has claimed that Bitcoin would touch the value of $250,000 just a few years from now.
He had originally projected for that to happen by 2022. But he recently modified that timeline and extended it to early 2023.
Draper, who has established his name in the cryptocurrency industry as a popular Bitcoin bull, spoke to Yahoo! Finance about his now-famous projections on Bitcoin’s value — with a slight modification.
“$250,000 by 2022, and I’m hedging a little, maybe Q1 2023,” he told the online publication. “It may be Q1 2023, but it will be [$250,000] before that.”
Draper is Doubling Down on Bitcoin
Draper shared these views while unveiling his modern boxing gym Grit BXNG, which would be the first establishment of its kind to accept cryptocurrency payments in the form of Bitcoin.
Given his reputation as a strong Bitcoin supporter, the investor is planning to highlight the use cases of Bitcoin as a digital currency when its status is slowly changing to a commodity such as gold.
The recent events in the U.S.-China trade war have highlighted Bitcoin’s status to hold a high-liquidity investment that is not directly influenced by regional or global economic developments.
Since Bitcoin doesn’t get affected by market conditions, the Federal Reserve System’s rate cuts, or a slump in the stock markets, it is being regarded as a safe haven investment by some in the financial sector.
But Draper is intent on highlighting Bitcoin’s use as a digital currency, even if its status is currently changing from digital cash to a commodity with high liquidity.
Bitcoin Might Benefit from Libra’s Launch Instead of Being Diminished By It
Due to these different use cases for Bitcoin, Draper project that the digital currency would have massive traction within the next couple of years.
He also took the time to speak about Facebook’s Libra, the cryptocurrency that has corporations such as PayPal, Visa and MasterCard serving as its main launch partners. With the powers given to them, these corporations would make key decisions on the social media platform’s cryptocurrency development moving forward.
Draper mentioned that due to the structure that Facebook has selected, it cannot be termed as a decentralized currency. But Bitcoin retains its status as being one, which has been one of the reasons why people are flocking towards it.
“I thought there would be many more competitors at this point that were really relevant,” he said. “But people have consolidated toward Bitcoin because it’s decentralized and that’s why they get the flak at Facebook for being a centralized currency.”
This is Not the First Time Such Predictions Have Been Made
The predictions for Bitcoin going past a certain value are nothing new. In fact, they are a dime a dozen when it comes to the assessment of cryptocurrency experts.
Unfortunately, not all of these predictions actually come to fruition. In fact, most of them don’t.
While these price projections have increased in quantity ever since the cryptocurrency boon of 2017, they do not add much value to the actual movement of the market.
This is especially true since the events of 2018, when the cryptocurrency market slumped by a significant margin. All the predictions that had been made for Bitcoin doubling, tripling, or quadrupling in value were effectively for naught.
Bitcoin evangelists have been known to talk about their favorite cryptocurrency. These predictions have not been limited to individual investors or experts in the digital asset. They also include professional investors of Bitcoin from the cryptocurrency industry.
For instance, Mike Novogratz, a former hedge fund manager who currently helms his own cryptocurrency investment firm by the name of Galaxy Digital, popularly claimed that Bitcoin was set to go past $40,000 by the end of 2018.
Among other reasons, Novogratz had outlined growing investor interest as a factor behind Bitcoin’s price movement.
But Bitcoin ended 2018 on the value of just over $3,700.
It wasn’t just Novogratz who made such bold claims in the past. Other cryptocurrency bulls such as Tom Lee, managing partner at market strategy firm Fundstrat, also made projections about Bitcoin reaching over $11,000 in 2018.
He was a bit off. It touched $11,000 in 2019.
To summarize, the history of the cryptocurrency market is full of such instances, where almost all price predictions fall flat on their face no matter who they come from.
Why Can’t Anyone Predict Bitcoin’s Price Correctly?
Bitcoin is a speculative asset, which means that its value depends upon market conditions and related aspects instead of a physical property. Another prime example of a speculative asset is government or fiat currency, which has its value based on speculation and market trends.
With that being said, the speculation in Bitcoin is harder to pinpoint than it is for conventional or fiat currencies.
While fiat currencies have factors such as issued government’s political standing, financial stability and trade history all working towards their value, the same viewpoint does not hold true for digital currencies.
It’s because digital assets such as Bitcoin are not tied to a government. They are not dependent upon global trade histories with other countries. And they are not directly related to movements in regulations and policies by central banks.
Experts are free to expand upon the projections that they hold in place for cryptocurrencies. But thinking that they would be able to hit the nail on the head would not be a correct assessment of their actions.
Keeping this in mind, the current project for Bitcoin to go past $250,000 is definitely an interesting headline for those who want to be optimistic about the digital currency. With that being said, it is in no way a real projection of the market’s movement. But Draper remains hopeful about Bitcoin — and so do those who believe in the cryptocurrency.
The ZB Group realizes that there are a variety of ways to think about the price of the leading censorship resistant digital asset bitcoin. It is true that some may get their predictions right while others may not. But the fact is that there is more value in understanding the technology and what it can unlock.
About ZB Group
ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.
Learn more about ZB Exchange by visiting www.zb.com.