Venture capitalist and Bitcoin bull Tim Draper joined Benzinga’s “Moon or Bust” to share his thoughts on cryptocurrency and what’s ahead.
Investing in Bitcoin: Draper, who was an early investor in companies such as Hotmail, Skype, Solar City, Tesla Inc (NASDAQ:TSLA), SpaceX, Coinbase Global (NASDAQ:COIN) and Robinhood, bought Bitcoin (CRYPTO: BTC) in 2014.
Show host Logan Ross informed viewers Draper bought 30,000 Bitcoin at an average price of $600 and that the venture capitalist is typically right.
“I’m wrong more than I’m right,” Draper said, despite being up over $1 billion on his Bitcoin purchase.
Follow Tim Draper on Twitter @TimDraper
Before making an investment Draper considers if the item creates freedom and trust and makes the planet better.
“I’m always thinking if it works” and not what could potentially go wrong, Draper added.
Related Link: How To Buy Bitcoin
Debunking Criticism: Draper was hesitant to say that Bitcoin and cryptocurrency need more regulation.
“Free speech is incredibly value for people all over the world,” he said.
Draper said socialism and communism don’t work and that free markets are needed.
A common question Draper is asked is when will he trade in his Bitcoin or sell it. His response? “Why would I ever trade in my Bitcoin, which is the currency of the future.”
Draper compared doing this to trading Euros for worthless old currency saying “it just doesn’t make sense.”
What’s Next for Bitcoin: Ten years from now, Draper believes we’ll look back and see how fiat was tied to politics and the inflation pressure countries faced after printing money.
“We’ve got a new currency,” he said.
Draper would like to see more adoption from retailers to accept Bitcoin, noting that some retailers offer options to use Bitcoin, such as KFC in Canada.
“Once I can use it for pretty much anything I buy, I will make the complete transfer,” Draper said.
Bitcoin has a supply of 21 million, which Draper said keeps inflation pressure away compared to the traditional U.S. dollar, which is worth less due to the printing of more money to support recent stimulus.
Draper told the show hosts that seven of the top 10 highest valued companies change every 10 years, which means that instead of the current leaders such as Microsoft Corporation (NASDAQ:MSFT), Apple Inc (NASDAQ:AAPL) and Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) leading the way in value in 10 years, it could be Bitcoin, Coinbase and SpaceX.
$250,000 Target Price: Draper made waves in 2018 predicting the future price of Bitcoin. Draper predicted the price of Bitcoin will be $250,000 by the end of 2022 or early 2023 and he stands behind that prediction.
On Fox News in 2014, Draper predicted Bitcoin to rise from $180 to $10,000 in three years, which was accomplished nearly to the day of the original projection.
Draper makes his predictions based on analytics and a gut feeling.
“Having a good sense of what’s happening five years from now” is also important in Draper’s predictions.
Draper doesn’t have a target price on Ethereum (CRYPTO: ETH), which is a cryptocurrency he is far less excited about saying it could be less relevant over time.
Ethereum is important for new technologies but will be less relevant over time, according to Draper.