Bitcoin price (BTC) has been experiencing a bearish trend since the start of this year, dragging the largest coin to trade around $4000 level – down almost 77% from its previous all-time high.
Tim Draper, the billionaire venture capitalist, still remains optimistic about the future fundamentals of cryptocurrency markets. The venture capitalist and bitcoin bull recently repeated his stance that bitcoin price is set to reach $250K by 2022.
Why does Tim Draper expect Bitcoin to Reach $250,000 by 2022?
The huge slump in bitcoin price didn’t deter bitcoin lovers – who strongly believe that digital coins would become a viable medium of exchange. Tim Draper strongly believes that crypto coins have strong future fundamentals; he predicts significant adoption of crypto coins as a medium of exchange all over the world. Therefore, he expects bitcoin to stand around $250,000 in the next three years.
Mr. Draper said: “Down the road, when we can easily spend, or invest, or do whatever we want with cryptocurrencies – they are frictionless, they cost you less. “Just by that alone, just that they cost you less, it is going to be better for people. And so they are going to move to crypto, and they are going to go away from the political currency – they call it fiat.”
Bitcoin (BTC) Price Today – BTC / USD
Tim Draper believes that countries all over the world would support and adopt cryptocurrencies in the future; smaller countries like Venezuela, Iran and a few others already adopted crypto coins. Venezuela, for instance, has recently launched their own coin – which they said is backed and linked to oil prices. Venezuela’s launched Petro to counter U.S. trade sanctions. Iran has also been planning to launch their cryptocurrency to counter trade sanctions.
“I tend to move my dollars into bitcoin, because I think, well, why would I want this currency that is tied to some political force when I have a currency that is going to be frictionless and global? I would much rather have a global currency than one that is sort of tied to a political force,” he added.
Is Tim Draper Price Forecast a Fairy Tale
The cryptocurrency market has the potential to make big price swing amid markets reports and speculations. The market had witnessed such swing in the past couple of years. At the beginning of fiscal 2017, no one would have thought that bitcoin price jumps to $20K; speculations related to higher adoption and bitcoin ETF’s has led the flagship crypto to hit an all-time high at the end of 2017.
Tim Draper hasn’t provided solid arguments to support his price bet. He based his prediction on assumption that the world will adopt bitcoin – which would increase its price to $250K in the next three years. He, however, didn’t consider several aspects that could have a massive impact on the future fundamental. These factors include the fair value concept, the huge price volatility that is hindering BTC potential to work as a medium of exchange and SEC role in crypto markets.