Priced by bitcoin has returned over $ 50,000 when it recovers from one of the most serious dips in its history. The latest gains came when the prominent investor Tim Draper presented his most positive predictions to date for the cryptocurrency.
Bitcoin traded below $ 44,000 earlier this week, reaching a full-time high the week before above $ 58,000. Its rebound suggests the third fantastic price rally in its history may still be ongoing, with Mr Draper claiming it has the potential to increase another 100 times.
The billionaire’s venture capitalist first gained prominence in the crypto community when he bought a piece of bitcoins confiscated by Silk Road founder Ross Ulbricht of the US Marshals Service. The 2014 auction of 29,657 bitcoins was acquired for $ 19 million. At current exchange rates, these bitcoins are worth more than $ 1.4 billion.
At the time, he said bitcoin would rise from about $ 400 to $ 10,000 within three years. His prediction was largely rejected but it turned out to be correct within a few weeks.
“I think bitcoin in 2022 or early 2023 will hit $ 250,000,” he said at the time, when bitcoin was worth less than $ 4,000. “I think the reason is that bitcoin will be any currency.”
Speak this week on Unstoppable podcast, Mr Draper stood by the prediction for 2019 and went into more detail about what he thought bitcoin’s market value could ultimately reach.
“The current currency setting in fiat is around $ 100 trillion and the market value of bitcoin is only reaching $ 1 trillion now, so there is no reason why it cannot go up 100 times,” he said.
“It’s not like it’s going to replace the dollar completely, although I think people will laugh when you try to buy things for dollars in the future.”
Bitcoin’s latest market swing has been amplified by large investments from high-profile companies, most notably a $ 1.5 billion purchase from Elon Musk’s Tesla. New investments from Square, the payment company run by Twitter founder Jack Dorsey, who have helped bitcoin’s price recover from last week’s dip.
Software company Microstrategy also added to its already significant holdings by buying another 328 bitcoins for about $ 15 million this week.
When asked to predict which companies would enter the space next, Draper said he thought pension funds would be the next to follow, as well as potentially more Fortune 500 companies.
“If I am the CFO of one of the big organizations, I say ‘we need to own X percent of bitcoin because it is a hedge against another currency becoming the currency of the future, and it is also a hedge against inflation,'” Draper said.
“You know who it could be, Netflix. I think [co- CEO] Reed Hastings is a very innovative guy and has a lot of creative thinking … And so I think it may be the next big thing that falls.
“Google can do something, but I think Google and Facebook and Apple are looking at whether they can create a currency that is centralized, it’s theirs – and Amazon’s.”