Tanya Abrosimova
Independent Analyst
- Bitcoin's recovery is limited by the psychological resistance of $8,000.
- Tim Draper confirms his bullish Bitcoin forecast.
- Monetary stimulus and mass adoption will drive the price.
Bitcoin (BTC) is hovering under $8,000, mostly unchanged since the beginning of the day. However, a prominent venture capitalist Tim Draper sticks to his forecast made in 2018 that the price of the first digital coin will reach $250,000 by the end of 2022. Speaking at Virtual Blockchain Week, he said:
That's my prediction. Sticking with it. I'm very confident that that is going to happen. That’s happening. It's kind of funny.
He believes that the huge fiscal stimulus packages deployed by major global central banks and governments will become one of the main factors behind BItcoin's price increase. As the FED, ECB and other regulators turn on their money printers to finance government spending, people will turn to digital assets, namely, Bitcoin to protect their wealth from devaluation.
Apart from that, people will realize the benefits of Bitcoin's commercial usage, which will drive the adoption rates.
All of a sudden, the retailers say, “Oh, you mean I don't have to pay 2.5-4 percent to the banks every time somebody swipes a credit card?
The investor said that he would eat a raw egg if the cryptocurrency fails to hit the specified level by the end of 2023. Earlier this month, Draper said that the coronavirus pandemic and the financial crisis could become the tipping point for Bitcoin adoption.
Timothy Cook Draper is an American venture capitalist and a founder of thirty venture funds and Draper University. Famous for his investments in Baidu, Hotmail, Skype, Tesla, SpaceX, and AngelList, he is also known as a vocal Bitcoin proponent.
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