Tim Draper, one of the most prominent venture capitalists, is confident that the price of Bitcoin will be able to more than double this year, reaching $250,000.
On the heels of the recent surge, I’m still expecting Bitcoin to reach $250,000 this year.
Draper originally predicted that Bitcoin would be able to achieve this price mark by 2022. After that forecast turned out to be a big miss, he now insists that it will be this year.
The famed American entrepreneur, who is known for his early bets on such companies as Skype, has also outlined some of the main factors that support his bull case. These factors include macroeconomic optimism surrounding trade deals, the incoming regulatory frameworks that the industry has been asking, as well as Web3 applications that are being built onto the Bitcoin blockchain.
The billionaire investor has also noted that major banking institutions, including JPMorgan, are embracing the leading cryptocurrency. As reported by U.Today, the largest U.S. bank by total assets will allow its customers to buy the flagship cryptocurrency, according to CEO Jamie Dimon. However, JPMorgan will not offer Bitcoin-related custodial services.
Bitcoin is currently trading at $104,922 after reaching its current all-time high of $112,000 in May.
"Extremely low risk" investment
Various businesses that are piling into Bitcoin are turning the leading cryptocurrency into an "extremely low-risk investment," according to Draper.
"Businesses are piling in, bringing it further into the mainstream," the billionaire said.
Bitcoin, according to the billionaire, is emerging as a store-of-value asset.
Draper acquired tens of thousands of Bitcoins during an auction in 2014 by the U.S. Marshals Service. Those coins were seized from the notorious Silk Road exchange.
Surging to infinity?
Draper has also reiterated that the leading cryptocurrency could potentially surge to infinity against the leading cryptocurrency.
As reported by U.Today, the legendary venture capitalist did not rule out that the U.S. dollar could experience hyperinflation.
Vladislav Sopov
U.Today Editorial Team