In a recent interview with Indian media outlet Money Control, billionaire Tim Draper said that Bitcoin, the leading cryptocurrency, is still "cheap" despite recently approaching the $100,000 level.
Draper, who is known for betting early on such groundbreaking companies as Skype, has predicted that Bitcoin could potentially become the world's dominant currency. This will significantly reduce the demand for fiat currencies, according to the prominent investor.
Even though Bitcoin's market cap is now approaching $2 trillion, Draper has noted that the largest cryptocurrency is still relatively small compared to the global economy.
In fact, Draper believes that the price of the leading cryptocurrency could go up roughly 30 times from where it is trading right now. This means that the price of the leading cryptocurrency could potentially skyrocket to as high as $3 million.
Draper believes that the recent Bitcoin rally is "totally rational" because the leading digital asset is going to be "the currency of the future."
The 66-year-old investor is still convinced that Bitcoin will manage to gain traction as a means of payment. The mainstream acceptance of Bitcoin payments will coincide with bank runs, according to Draper.
Bitcoin is currently changing hands at $94,864 after dipping 2.4% over the past week.
Draper, an early Bitcoin investor, correctly predicted that the price of Bitcoin would reach $10,000 in 2017. However, his later predictions did not work out that well. The venture capitalist repeatedly forecasted that Bitcoin would hit $250,000 in 2022. Later, he came up with a revised prediction of $250,000 by the end of 2024. However, it seems like this forecast will not materialize either.
Arman Shirinyan
Tomiwabold Olajide
Dan Burgin