Popular American venture capital investor, Tim Draper, recently said that he has been out of the traditional markets for the past six months.
Instead, he has most of his investment portfolio allocated in Bitcoin as he believes its price will reach $250,000 by early 2023.
Bitcoin At $250,000
Draper has been quite optimistic regarding the future of the largest digital asset previously as well. Yesterday, in an interview for CNBC’s “Squawk Alley,” he reaffirmed his previous bold prediction for the price of Bitcoin. He noted that by the end of 2022 or early 2023, Bitcoin would reach $250,000. To get there, BTC would have to increase by about 2,500%.
He admitted that Bitcoin has a long way to go, but it will attract the attention of the masses due to its positive features:
“Bitcoin will be the currency of choice. Bitcoin is not as easy to move around, but eventually, it will be. Then you will have a choice, and you will say: “hey, do I want to pay the banks 2.5% to 4% every time I swipe my credit card or do I want a currency that’s frictionless, open, transparent, global, and not tied to any political force.”
According to him, people will make that switch in time, and Bitcoin “will be the big winner.”
Out Of The Traditional Market
The Draper Associates Founder was asked to comment on the current situation of the stock market. However, he admitted that he has been out of the traditional markets for the last six months.
“The market got too excited. Uber drivers were doing day trading. All the signs were there. I think it was time.”
He noted that this latest price declines could turn out to be more than just a correction. That’s why Draper has moved most of his investments in cryptocurrencies and Bitcoin. He believes they are “kind of a safe-haven now.”
However, Draper didn’t want to specify how much Bitcoin he holds exactly. When asked about his investment portfolio allocation in the largest digital asset, he just said: “it’s a lot.”
Draper On Buffett’s Views
As Cryptopotato reported yesterday, Warren Buffett is still skeptical regarding Bitcoin. The prominent U.S. traditional investor said that it has no value.
Draper, who previously advised millennials to invest in Bitcoin, addressed Buffett’s negativity towards the cryptocurrency market:
“50% of his holdings are banks and insurance companies. They are not going to do well in this new decentralized economy. Of course, he’s not going to like it. He sees a huge threat to his holdings.
Clearly, he’s not going to want this new currency, that everyone who has studied it knows it’s so much better than what we have out there. And these currencies that are tied to fiat government – I think they are just going to be a relic of the past. Like holding drachmas and franks.”