Benzinga - At the end of 2023, venture capitalist Tim Draper predicted that Bitcoin (BTC) would go as high as $250,000 in 2024.
At the time, his prediction was seen as unlikely, and many dismissed his claims. However, with nearly one-third of 2024 gone, his prediction may not seem as unlikely anymore.
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Several years ago, Draper said that BTC would go as high as $250,000 in 2024. In 2020, when the price of BTC dipped below $4,000, Draper predicted that the price of BTC would reach $250,000 in the next four years. Draper then doubled down on his prediction in late 2023.
"When I predicted that, what I didn't expect was how fearful and just old thinking the U.S. would be," Draper said, noting that he thought institutional adoption would be much further along than it is. "I would say that my number $250,000 will probably come pretty soon, so I'll stick with $250,000. I actually think that if it hits $250,000, it'll go way past it."
Draper alluded to several factors that influenced his decision. One of the biggest reasons he believes Bitcoin will go so high is because of how it can reduce bureaucracy and time spent waiting.
"I can't wait for the moment when I can raise all my investor money in Bitcoin, invest it all in Bitcoin, have them all pay their employees and suppliers — and their taxes and everything else [in Bitcoin] and have it all be completely accounted for, audited, without an accountant, an auditor, a bookkeeper, a transfer agent or a tax lawyer. This new economy will have far less friction. I think that's very exciting."
Draper also raised a far less discussed point about women adopting Bitcoin. A recent study found that men are more inclined to invest in crypto than women. This discrepancy is a limiting factor for the growth of Bitcoin in general. However, Draper believes that "all the women will have Bitcoin wallets and they will be buying things with Bitcoin and you are going to see a Bitcoin price that will just go right through my $250,000 estimate."
Another point that Draper did not directly discuss was the upcoming Bitcoin halving. In the past, this event has been a catalyst for growth. Specifically, it has led to 1,000%+ price increases. The most recent halving in 2020 saw the price of BTC go from around $10,000 to nearly $70,000. The next halving is expected to occur this week. If past movements are accurate predictors of this cycle, Bitcoin could go above $250,000.
If BTC were to reach $250,000, it would have a market cap of nearly $5 trillion, larger than any publicly traded company in the world. It would mark a gain of roughly 300%.
While Draper's estimate may seem a bit outlandish, past market moves show that it could happen, though not necessarily in 2024.
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