When Tim Draper talks about good technology investments with huge profit potential, the markets listen. Some of the winning choices of the Silicon Valley venture capitalist include Baidu, Skype, Tesla, SpaceX and Twitch.
In 2014, Draper made a huge bet on bitcoin. He spent just under $ 19 million on 30.000 BTC sold by the US authorities at auction.
Outperforming the others, Draper seemed to have paid a premium for the coin. But today that 30.000 BTC is worth over $ 200 million with a bitcoin price above $ 7.000.
Do you think it will be worth $ 7,5 billion in two years at a price of $ 250.000.
Tim Draper: Bitcoin is about to explode
In an interview with BlockTV this week, Draper said:
If you do a technical analysis, it looks like it will take six months to a year after halving that we will cross $ 250.000 per bitcoin.
He followed the prediction with a classic euphemism:
So yes, it could be an interesting buying opportunity.
Draper sees the value in bitcoin's features and benefits as a financial product:
I am so frustrated that banks only take two to half and four percent each time I swipe my credit card. I am ready for this new currency.
Critics have called bitcoin a ponzi scheme and compared its trembling price boom over the past decade to the tulip craze of the 17th century.
But it's not as if Tim Draper was looking at the price of bitcoin through pink colored lenses. He also predicted that his price will drop in September 2018, just before he does:
The Internet started the same way. It came in big waves and then crashed. And then the next wave is concentrated but much larger. I suspect the same thing will happen here.
Fundstrat's Tom Lee talks about CNBC's Fast Money
Fundstrat's Tom Lee went to CNBC to discuss the $ 250.000 bitcoin price prediction.
Lee said:
When you look at it on a log basis, the idea that bitcoin would get there would be consistent with the idea that it is a generational trade. I don't know if it will take 24 months ...
Fast Money's anchor opened the segment by browsing the forecast, but note that the source is credible:
I don't know if we should talk about it, because I felt so bold, almost irresponsible. But Draper - is a well-known boy. He won't say anything he doesn't believe in.
A Fast Money analyst said bitcoin could get there if it rivals gold for market share:
If bitcoin were at $ 250.000, it would be a market capitalization of around four and a half trillion dollars, which would be about half the market capitalization of all the gold in the world. And so I think Tim Draper thinks ... bitcoin will take market share from gold.
Bitcoin's current market capitalization is $ 130 billion. If Draper's prediction is true, this would mean the trillion dollar exodus from other bitcoin markets.
