Everybody knows that Tim Draper has always been a big bitcoin and cryptocurrency fan, but he’s taking his love of digital assets one step further and has now turned his back on all other investment tools. He says he’s even quit stocks completely, and now invests a huge portion of his portfolio in bitcoin alone.
Tim Draper Really Believes in BTC
Draper says he exited stocks about six months ago. The market has been up and down since Trump first initiated a trade war with China and implemented new tariffs on imported goods. This could be the reason why Draper has suddenly turned to crypto completely. He says he’s significantly added to his bitcoin and crypto portfolio over the past few months.
While he hasn’t stated how much he’s put in exactly, he did comment:
It’s a lot, it’s a lot, a lot. I’m just a believe, and I look and say, ‘Hey, this is just better.’ Long term people move to things that are better.
Draper has built a major reputation for himself as a bitcoin advocate. Over the years, he has purchased BTC units from auctions based on the secret stashes of former drug runner and Silk Road founder Ross Ulbricht. In addition, he has often claimed that the price of bitcoin is likely to hit the $250,000 mark in either 2022 or 2023.
However, he recently sent crypto enthusiasts staggering back when he shifted this prediction forward by several years and claimed that the figure would be hit by the end of 2020. It may seem unrealistic for such a short period of time, but many traders and analysts are probably secretly keeping their fingers crossed that Draper is correct.
Draper says that the current situation involving the stock market is too “frothy.” They keep getting affected by things like the coronavirus, and he’s not willing to put his wealth and net worth at risk any longer. He stated:
It just got too frothy. The market got too excited and Uber drivers were doing day trading. All the signs were there.
You’re Wrong, Buffett
Draper also took aim at Warren Buffett, the CEO of Berkshire Hathaway. In the past, Buffett has continually bashed bitcoin, claiming it has no value and that it’s worth no more than a button on his jacket. In a recent interview, Buffett exclaimed:
Cryptocurrencies basically have no value and they don’t produce anything. So, you can look at your little ledger item for the next 20 years and it says you’ve got X on this cryptocurrency or that. It doesn’t reproduce, it doesn’t deliver, it can’t mail you a check, it can’t do anything, and what you hope is that someone else comes along and pays you more money for it.
Draper merely comments that Buffett is “worried.”