Bitcoin (BTC) may have dropped by 4% in the past 24 hours, receding to $7,600 in an interday drop, but many analysts and investors are still optimistic. The thing is, the fact that BTC collapsed to $6,100 and then skyrocketed to tap $8,000 for a second time was deemed by many to be wildly positive, as it asserts that the bulls have control of the cryptocurrency wheel.
One prominent investor claims that this is just the start though. He recently asserted that Bitcoin’s runway is a lot longer than some expect and that BTC can easily reach a value in the sextuple-digit range.
Tim Draper, a prominent venture capitalist known for sporting an “offensive” purple Bitcoin tie, recently told The Street that now’s still an optimal time to purchase Bitcoin. In a comment characteristic of his long-term expectations for this space, the investor quipped that it may be wise to “buy the dip [or] buy the rebound”, hinting at his belief that whether your BTC cost basis is $5,000 or $10,000 in years from now won’t matter.
He goes on to state that by 2022, “maybe 2023”, he expects for each BTC to be valued at $250,000, explaining his prediction as an estimate of the market share that Bitcoin will obtain as a viable currency and digital store of value.
What comes after Bitcoin hits $250,000? Well, in the extremely long run, like in the coming decades, Draper expects for the value of all digital assets to begin to make a move on the $100 trillion hegemony of fiat, government-issued money. While fiat makes up a vast majority of global capital flows, Draper argues that using such “poor” currencies is illogical, citing their controllability, lack of transparency, and subjectivity to political and social whims on the day-to-day.
Per previous reports from NewsBTC, quantatative analyst PlanB writes that money from silver, gold, negative interest rate economies, authoritarian and capital control-rife states, billionaires looking for a quantitative easing hedge, and institutional investors will be what pushes Bitcoin to $55,000 after 2020’s halving. This inflow could potentially kick off what many call “hyperbitcoinization”, which is when fiat currencies rapidly lose value as Bitcoin supplants it.
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