Tim Draper, a venture capitalist (VC), has revised his forecast for when the price of Bitcoin will hit $250,000. Draper still believes that the biggest cryptocurrency would eventually achieve his forecasted price level, but he noted that it might take “a little longer.”
Despite having increased by more than 84% Year-to-Date (YTD), when compared to the projections of the top market analysts and investors, Bitcoin (BTC) is severely underperforming, according to the venture capitalist.
Draper has revised his forecasted time frame for the price of Bitcoin. Recently, he projected in a tweet that by the time Bitcoin reached $4,000, it would have increased by 60 times to reach $250,000. BTC, though, finished June below $31,000. He commented, “I guess we have to wait a little longer,” adding that it might take another two years for his estimate of $250K to materialize.
Draper had forecasted that by the end of 2022, the price of Bitcoin would reach $250,000. On December 31, 2022, he did admit that his prediction for Bitcoin’s price of “$250k by 2022” was “off by a bit.” He stressed, though, that the price of BTC will “certainly” reach the anticipated level before the 2024 price halving.
He expanded his BTC price projection period by six months to mid-2023 when his December 2018 estimate failed to materialize. If that still does not occur, Bitcoin will undoubtedly surpass the $250,000 mark by the end of 2024.
“I’m almost certain I’ll be correct in 18 months,” he declared.
The VC and a long-time Bitcoin proponent also anticipated that the adoption of Bitcoin by women would cause its price to exceed his forecast.
Draper recently voiced concerns about the regulation of cryptocurrencies and questioned the Securities and Exchange Commission’s (SEC) enforcement strategy.
He lambasted the Securities and Exchange Commission and its head, Gary Gensler, for focusing on enforcement when regulating the cryptocurrency industry in a June 12 interview with Fox Business, saying:
“I think we’ve got a real problem because the SEC has been spreading fear, and all of the innovators are leaving the country … This regulation by enforcement makes no sense.”
Prominent VC later explained how the U.S. would like the great technologies, including Bitcoin, to stay in the country, but all crypto companies are transferring their businesses to countries such as Dubai and Singapore, northern Europe and South America and all over the world.
“They’re all saying – oh, it’s all about the Howie test. The Howie test was 80 years ago, and it has no relevance to crypto. I think crypto needs to be regulated in a new way from a new group,” Draper commented..
He went on to argue that America is going to look like a total wasteland in 40 years.
“There’s gonna be no technology. Look, crypto is coming. AI is coming. What is this spreading fear about these new technologies? They’re great for us. I mean, new technologies, we got smartphones, we got Teslas, we got all these amazing new technologies.
We have the internet. All these things happened because the regulators had a light touch,” he asserted.
Draper stated that, in cases where there is fraud, which he said there probably was in FTX’s case – “you’ve got a job to go do.”
“Yeah, but that doesn’t mean you just start shooting randomly at any company that has anything to do with new technology. It makes absolutely no sense. And, you know, sure, there are certain there are going to be certain people who are doing things that you clearly don’t want to have done in the U.S., he said.
He also commented it is important to play by a certain set of rules but:
“We play by those rules. We always believed in those rules in the U. S. And now it’s like we don’t even know what the rules are, but somehow he (Gary Gensler) can enforce whatever he wants. Anytime he wants. That is just going to drive all the innovation out of the country, “ he said.
Draper blamed SEC’s chair Gary Gensler for damaging the whole country if he’s going to continue this sort of thing.
“Now, Coinbase, all they wanted to do was… abide by the law. They kept writing the SEC. What can we do here? SEC went ahead and let them go public. And somehow now they’re sitting there going: oh, now you’re violating things and we don’t even know what you’re violating, “ he mocked the SEC.
Draper commented on the situation where SEC is suing the US crypto exchange Coinbase and its CEO Brian Armstrong.
He commented Armstrong is doing a good job in fighting the SEC and is doing the right thing by trying to collaborate.
“He’s got a new innovation. It’s Bitcoin and crypto, and all these amazing things that are going to completely transform the global economy that we’re going to see extraordinary things come out of these, whether it happens in the U.S. or not, is really going to be determined by what happens with our regulators. And I think our regulators are acting way out of line, and I think it’s time to I think it’s time to reign them in, “ he commented.
Draper stated that AI is going to transform the way we educate people, the way we think about things, and the way we operate.
“All of the mundane tasks are eventually going to be taken by AI so humans can move to an anthropological leap forward. It’s going to be amazing. But, uh, boy, you can’t regulate that out of your country, or you lose all the innovators,” he concluded.
At the time of publication, Bitcoin was trading at $30,636, a significant discount to Draper’s lofty price goal, but the investor is still confident in his forecast.