The influential venture capitalist Tim Draper has given hope to those who might not be loving the current climate of the cryptocurrency market. He explained last Friday that he believes while prices and market capitalizations might fluctuate, and could decrease for the moment, but that the market would eventually reach $80 trillion within the next 15 years.
Draper elaborated that he believes that once people realize that cryptocurrency is targeting trillion dollar markets, the cryptocurrency market, in general, would reflect their value more accurately. He made the statements recently at a Singapore summit that was sponsored by DealStreetAsia.
Tim Draper, the PermaBull
It should be explained that Tim Draper has been extremely positive about cryptocurrency for some time now, and gained cryptocurrency fame for purchasing seized Bitcoins from the Silk Road marketplace website, at a US Marshals Auction. At the said auction, he made a massive purchase of 30,000 Bitcoin for under $20 million, specifically.
He has been vocal about his criticisms of governments who downplay cryptocurrency, recently suggesting that the Bitcoin should “replace the rupee” after it was revealed in April that India’s central bank would no longer manage crypto-related accounts.
Predicting the Future
Tim Draper has also been lauded for the accuracy of his 2014 prediction, where he boldly stated that Bitcoin would be worth $10,000 within three years. Draper, an early investor in some of the most influential tech companies in the world, such as Skype, Tesla, and Twitter, has long been respected in the Silicon Valley community, but his early support of Bitcoin was met with skeptics and critics.
However, it is clear that Draper was in fact proven right, as Bitcoin reached a price of over $19,000 in late 2017 – well over $10,000. Many praised Draper for his foresight.
In addition to his $80 trillion claims, Draper has also made the prediction that Bitcoin would reach a price of $250,000 by 2022, as well.
Not Without Controversy
It should also be noted that Draper does have his own controversies, as well. He was one of the first investors in the notorious Theranos, the blood-testing startup that recently has completely ceased operations as a result of commercial and legal challenges.
Both Theranos and its founder, Elizabeth Holmes, were charged with fraud by the SEC, and the demise of the company was largely set in motion by Wall Street Journal investigative journalist John Carreyrou. Draper went out of his way to defend the blood testing technology, claiming that it “worked beautifully” and even accusing Carreyrou of being part of an elaborate conspiracy. He defended Holmes even after she was charged by the SEC, claiming that she was a “great icon.”
He is also known for his attempt to file a petition to separate the state of California into six smaller states, which was ultimately unsuccessful.
The Logic Behind It
The venture capitalist is not making these statements ironically, or without any philosophy behind his theory. He essentially believes that there is about $80 trillion in currency in the world, and that essentially what will happen is that fiat currency will be replaced with cryptocurrency.
Draper sees cryptocurrency replacing everything from credit cards to being used for mobile payments, and thinks that eventually, the inefficiency of fiat will be “laughable.“