Tim Draper has made a real name for himself in the world of crypto given his consistent bitcoin price predictions and his purchase of Ross Ulbricht’s bitcoin stash during an auction following the Silk Road creator’s arrest.
Draper Thinks His Prediction Falls Short of BTC’s Potential
His most recent price prediction says that bitcoin will reach $250,000 per unit by the time 2023 rolls along. However, in Draper’s own words, this prediction is relatively “conservative.” He comments that several of his previous predictions have followed through with ease, and now he’s beginning to think $250,000 over the next four years might be an understatement, and there’s a good chance bitcoin could even strike a higher chord.
$250,000 means that bitcoin would then have about a five percent market share of the currency world and I think that may be understating the power of bitcoin. As it becomes easier for people to use… they’re going to make the decision that they like bitcoin better than any fiat because they know that their fiat will depreciate.
It is estimated that the bitcoins he purchased from the auction are worth more than $300 million today. In addition, he has consistently pushed bitcoin as the future of finance, and now it appears many are rushing to his side. Despite his “conservative” label, his future price prediction is larger than what many other analysts claim will happen.
Nigel Green, the CEO of the financial consultancy firm DeVere Group, believes that if bitcoin spikes in the future it won’t be because of adoption rates or use cases. Rather, he thinks the U.S. Federal Reserve will probably be at the heart of bitcoin’s meteoric rise. The government is expected to cut rates this week for the first time in several years.
Bitcoin is likely to break out of its recent sideways trading pattern and be given a healthy boost by the Fed’s rate cut. This is because an interest rate cut reduces the incentive to keep the fiat currency. In addition, rate cuts typically lead to higher inflation, which reduces the purchasing power of traditional currencies, therefore making cryptocurrencies more attractive.
The Trade War Hasn’t Contributed to Much
Green has frequently touted the economic weakness stirred by the ongoing trade war between the U.S. and China, saying that many will likely see bitcoin as a “digital gold” in that it has the power to sustain wealth and one’s net worth during times of strife. Unfortunately, bitcoin hasn’t done particularly well during this time, leading many to question just how big an impact the trade war has had on cryptocurrency prices.
Still, Changpeng Zhao, the CEO of Binance, is – like Green and Draper – also confident that bitcoin will spike, though he believes it has more to do with increased hash rates for miners.