He was right. Yes, the same guy who pushed to split California into 6 pieces (which I thought was great by the way) predicted the bitcoin price to reach $10,000 around this time way back in 2014! With a well deserved $110 Million in apparent profits, we say hats off to this Silicon Valley entrepreneur and bitcoin evangelist.
Who Is He?
Tim Draper is a venture capitalist, born in the emotional center of Silicon Valley, otherwise known as San Francisco. Him and his firm were notable for the fact that they purchased all the cryptocurrency from the first ever bitcoin auctioned off by the U.S. Marshals (that they confiscated from Silk Road). He bought the entire near 30,000 coins; then worth about $580. At today’s price around ~$10k he made 17x his money back! Draper backed a bitcoin exchange he named Vaurum to help investors get into bitcoin. Later they changed their name to Mirror.
He didn’t buy the coins to resell later, in fact he used them to grow bitcoin (this guy rocks!):
“But the winner, the venture capitalist Tim Draper, is not seeking a quick hit. Instead, through a partnership with the Bitcoin exchange start-up Vaurum, Mr. Draper intends to make the coins available for use in emerging markets. With the help of Vaurum and this newly purchased Bitcoin, we expect to be able to create new services that can provide liquidity and confidence to markets that have been hamstrung by weak currencies,” Mr. Draper said in a statement through Vaurum. “We want to enable people to hold and trade Bitcoin to secure themselves against weakening currencies.”
Why does his prediction matter?
Though many have predicted outstanding price targets for bitcoin, even into the millions of dollars, and even many the specific $10,000 target, Draper was right on the money with his timing of 2018.
“I have a price target of $10,000 in three years. Even that may be pessimistic.”
This man has his finger on the pulse of the huge investment behemoth that is Silicon Valley. Therefore his endorsement on the ‘investbility’ of a 5 year old technology called cryptocurrency was a BIG development and helped bitcoin along in and of itself.
Keep in mind though that bitcoin shot up so quick this year after major development hurdles finally were jumped over. I knew this outcome was likely after the problems (increased blocksize and fork off the disagreeing parties to reach a consensus for ‘bitcoin’) I just didn’t know how damn fast it would happen! Bitcoin has tripled from mid-September this year; just 2 1/2 months!
We’ve entered the Big Institutional Investor period of bitcoin
His prediction ringing true is a venture capitalist proving the viability of venture funds into the cryptocurrency space. But it’s like a self fulfilling prophecy. The price rise IS a demonstration of the fact we’re now entered the time of big money institutional investments into bitcoin and the crypto space.
How did he know?
Many doubted him. Even bitcoin news featured a piece calling $10,000 bitcoin unlikely in April 2016 about 2 years after his prediction with only 1 year remaining.
Maybe he had insider information. Maybe he knew his endorsement of bitcoin would snowball into massive venture capital into the sector. Hell if I was worth a Billion Dollars as he is, I would know my words had a lot of influence and clout as well.
Being a successful venture capitalist on the tech side, the west side of the country, Tim obviously knows a trend when he sees one and this one he definitely picked right! But he was also actively involved in perpetuating bitcoin and had the skill to grow the sector; for his own pocket and for the whole benefit of cryptocurrency (and freedom) enthusiasts!