The sphere of digital currency went crazy this week after Alex Ohanian (the Co-Founder of Reddit) said that the value of Ethereum would get as high as $15k by the end of this year. However, Ohanian modified his comment and said that it was $1,500 he had meant to say. Meanwhile, he also predicted that the end of this year, the value of bitcoin would get to the value it started the year with – which is $20k.
Draper Did the Opposite
Tim Draper (a venture capitalist and one of the biggest bull of bitcoin) did the opposite some weeks back. After tweeting that the value of bitcoin would get to the $25k in 2022, he later apologized in another tweet and said that the value would hit $250k in 2022, not $25k. In 2014, Draper predicted that the value of bitcoin would get to $1k by 2016, followed by a $10,000 increase in the following year – these two predictions were vindicated in the end.
Presently, the value of bitcoin has recovered to almost $10k, and the hype in price is driven by the increase in institutional interest in the crypto industry and speedily relaxing regulation fears. In the last couple of weeks, Goldman Sachs (a Wall Street banking giant) has created a bitcoin trading platform in the division of its commodities. However, Draper said that what is required to boost the profile of digital currencies is much more than institutional interest.
He said what is required is more people transacting in digital currencies instead of fiat currencies. To support his $250k bitcoin prediction, Draper thinks the overall market capitalization of fiat will fall from $80 trillion to about $30 trillion, providing digital currencies a total market capitalization of about $100 trillion. He said if this happens, his prediction would come to pass in a short time.