Avowed virtual currency bull and tech tycoon Tim Draper has forecast that the price of Bitcoin (BTC) will have reached $250,000 by 2022. Draper made the forecast during a blockchain event which was being held at an institution of higher learning in the state of California. In the past Draper has made predictions which came to pass. Three years ago for instance he projected that the price of Bitcoin would reach $10,000 before the end of 2017 which it did.
With regards to blockchain technology Draper is confident that it will revolutionize many industries including healthcare, finance, shipping and many more. This is because it is immutable, tamper-proof and therefore incorruptible.
Four years ago Draper was in the news after he purchased Bitcoins numbering 30,000 at a price of $600 a piece in an action that was conducted by U.S. Marshalls Service, the Justice Department?s law-enforcement arm. The department regularly holds auctions for property seized after raids have been conducted on criminals. At the current price of $8,000 a piece, the 30,000 bitcoins that Draper bought for a total of approximately $18.5 million is now worth around $240 million.
This coincides with the head of research and co-founder of Fundstrat, Thomas Lee, predicting that the price of bitcoin will triple its current price before then end of this year during an interview on CNBC.
“We still feel pretty confident that bitcoin is a great risk-reward and we think it could reach $25,000 by the end of the year,” said Lee, on CNBC’s “Futures Now” last week.
End of the bear run?
The largest cryptocurrency by market capitalization has since hitting a record high last year in December fallen by around 61%. According to Lee Bitcoin will recover the losses and hit another record high since it has been massively oversold.
Lee likened the current levels of Bitcoin to what was happening in the market during the digital currency?s bear run in 2014. During the end of 2014 and early 2015 the cryptocurrency was stuck in a bear run following the suspension of trading by Mt Gox and the eventual filing of bankruptcy by the exchange. Per lee the overselling of the digital currency can be attributed to Tax Day which falls on April 17.
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