Tim Draper has made a staggering $88 million from his Bitcoin investments in a term less than five years.
It all began in 2014 when Draper outbid other bidders in an auction held by the U.S. Marshalls by purchasing a total of 30K Bitcoin, of which he paid $632 for each unit. The $18.96 million he invested on BTC at that point is now worth around $107 million, even with the cryptocurrency dropping off about 80% of its price in the last one year. This investment has made Tim be a part of an elite group of personalities in the crypto world who are now crypto millionaires.
While crypto bears are running for the exits because of the shedding prices, Draper has not wavered and has remained as an advocate for cryptocurrencies and Blockchain. In fact, he wants to go with a Bitcoin venture fund.
Tim Drapers Vision: Push a button to shoot BTC into wallets
Recently he shared his vision to raise a fund to invest it all in BTC into a different bunch of companies and making them pay employees and suppliers all in Bitcoin. So everything is supported by Smart Contracts, done automatically with no accounting fees. If one of those companies gets sold, he should be able to push a button and just shoot it into all of investors’ Bitcoin wallets.
Draper’s Outlook on BTC
The recent drops in Bitcoin price don’t waver Draper from his believes that the global economy will soon see a transition to crypto. For him, short-term market mishaps do not unnerve the way it does to crypto investors with trader/speculator mindsets.
Even though crypto will inevitably experience its part of ups and downs, he predicts that the crypto market capitalisation will rise to $80 trillion in 15 years and the markets will continue to progress ahead to overtake fiat money, to make up two-thirds of the world’s total currency value, as CCN has reported.
He will still remain unharmed if he can sell-out the current holdings of BTC and gain a profit of $88million on market value. However, Draper is not willing to sell it because he sees a huge jump for the industry in the near future and has recently doubled-down on his prediction on BTC that is $250,000 by the end of 2023.
Draper’s Rational behind Bitcoin
He believes Blockchain technology in addition to Smart Contracts with AI will drastically change people’s daily lives.
There are several major drivers for his belief in Bitcoin which can be further classified into two groups.
- Ideal Libertarian Reasonings:
- Inflation is inherent in fiat money:
- The primary reason for calling the U.S. dollar or any fiat money a bigger “bubble” than the cryptocurrency derives from Bitcoin’s resistance to inflation. The foremost reason for this is because of its limited supply. When the first Bitcoin was mined, Satoshi Nakamoto fixed its supply to 21 million units. That’s why Bitcoin is safeguarded from the inflation that challenges all fiat currencies, the inflation rate of which depends upon the increasing amount of printed money distributed by the Treasury.
- Usual mistrust of the centralized government-issued money.
- The citizens of Venezuela started seeing the benefits of Bitcoin and began turning to it since the Bolivar lost 99.9% of its value. With low-cost government subsidized electricity, Venezuelan citizens have become one of the world’s most avid Bitcoin miners. Now, it is the cheapest place to mine Bitcoin in the world at $531 per Bitcoin.
- Economic Arguments
- Bitcoin needs to catch only 5% of the fiat market to achieve this dimension.
- In the long run, globalization will compel the world to concede to a single worldwide currency which normally will be the Bitcoin.
- Major institutional players will have to start buying large amounts of BTC in the future. If they want to acquire or invest in crypto companies, the only form of purchase will be through Bitcoin because crypto companies may not accept ‘political currency’.
- Mass acceptance of Bitcoin for regular microtransactions.
- Governments will be compelled to make pro crypto regulations to stay away from capital flight and brain drain.
Tim Draper believes Blockchain is the catalyst for good governance and he has showed his interest to be a part of the world’s largest Blockchain conference in Taipei (World Blockchain Summit) to elucidate ‘How Blockchain and Bitcoin can potentially transform the New Taipei city’.