Bitcoin to hit $250,000 by 2022? It might not be as crazy as it sounds...
That is the latest price prediction from Tim Draper.
If you are not familiar, Tim Draper is a billionaire tech investor who has been bullish on bitcoin since early 2014 at the very least.
He made headlines back in 2014 when he purchased roughly 30,000 bitcoins from an auction done by the US Marshals service relating the Silk Road shut down.
The price he paid for those 30,000 bitcoins wasn't made public, but they were estimated to be worth about $19 million at the time of the auction.
Why the $250,000 number?
It wasn't entirely clear why he picked that number, but speaking at a Blockchain event in California on April 12th he told investors to believe it.
Looking into his crystal ball, he proclaimed:
"I’m thinking $250,000 a Bitcoin by 2022."
"Believe it, it’s going to happen – they’re going to think you’re crazy but believe it, it’s happening, it’s going to be awesome!”
Those may sound like crazy predictions, but keep in mind that Draper made a prediction like this before, and guess what, it came true!
Back in 2014 when he purchased those 30,000 bitcoins related to the Silk Road auction, he proclaimed that bitcoin would hit $10,000 per coin over the course of the next 3 years.
At the time, bitcoin was worth about $400 per coin.
Fast forward 3 years later to 2017, and bitcoin not only hit $10,000 like he predicted, but it got pretty close to $20k per coin before the end of 2017.
So, before you throw out this wild sounding prediction, keep in mind that the last time he made a prediction like this for an extreme price rise, he nailed it.
More than just Draper making bullish predictions?
Tom Lee of Fundstrat Global Advisors has been calling for $25k by the end of 2018 for some time now.
He makes those claims based on previous trends and patterns seen in the price action of bitcoin.
Crypto Hedge Fund, Pantera Capital also says that there is a very high probability that bitcoin breaks $20k at some point before the end of this year.
Then there is Brian Kelly, CEO of BKCM, who went on CNBC's fast money last night and basically agreed with Tim Draper's $250,000 bitcoin by 2022 prediction.
Saying that although it sounds crazy, there might be something there...
"When one considers that BTC already had a 4,000 percent return over two years, a 3,000 percent return over four years could be merely a continuation of the trend we’ve already seen.”
While $250,000 might sound crazy on first glance, the prediction is coming from a guy that nailed his last major bullish call for bitcoin and if previous trends repeat themselves, there is support for a massive increase in prices over the coming years.
Stay informed my friends.
Follow me: @jrcornel