During the last few years, Tim Draper, famous investor, who interested in mainstream adoption of Bitcoin as a long-term investment, contributed to the Bitcoin industry. His investments on main Bitcoin exchanges and Blockchain startups including Coinplug and Factom have set up a strong infrastructure for Bitcoin customers in the world.
Last 12 months was the year of Bitcoin. Each small and huge-scale Bitcoin exchanges noticed a drastic growth in trading volumes and demand from traders and investors. Bitcoin outperformed every asset and reserve currency during the last year. However, the Blockchain marketplace struggled to display commercially successful systems or platforms for international usage. Tim Draper believes Blockchain continues to be in its infancy and is yet to show its real capability outside the realm of finance. Organizations like Factom are using enterprise-grade Blockchain to secure information and identities for sizable projects and establishments.
Tim Draper said:
“Bitcoin keeps spreading widely. Soon everybody will have a Bitcoin wallet. Increase there is on a bigger base. Blockchain continues to be in its infancy so increase rates should be higher.”
Draper noted that Bitcoin exchange and Blockchain markets are at early levels. He expects the Bitcoin marketplace to grow at a much quicker rate during these 12 months, following the lead of key companies like Coinbase. Especially at the end of 2016, traders and investors in countries like China and America sought out for Bitcoin as a safe haven asset or a hedge towards the current system.
Some traders bought Bitcoin to avoid temporary financial uncertainty and the devaluation of reserve currencies, whilst others purchased Bitcoin in long-term investment portfolios, predicting a huge growth in value. Tim Draper is an active player of Bitcoin auctions and has won numerous of them in the past. Bitcoin auctions are an effective way to buy huge amounts of Bitcoin, which are incredibly tough to secure via regulated Bitcoin exchanges.
Tim Draper believes Bitcoin startups will grow in value in relation to the cryptocurrency. There are a lot of traders that choose to fund Bitcoin startups as a safer long-term alternative, whilst there are big funding companies trying to buy huge amounts of Bitcoin without delay from mining firms like BitFury. Moreover, Tim Draper think investment will work out well in the long run. Some buyers want to focus on investment tech projects and startups, even as others are currency traders in nature.
Tim Draper said:
I have done both. Some people are traders and some are tech investors. Each should work out in the long run for Bitcoin.”
For cryptocurrency investors that keep Bitcoin as an instantaneous funding, they’ll benefit from the short-time period growth in Bitcoin value. Startups need capital and time to grow and therefore will require patience from their investors. Some currency investors are keeping Bitcoin as virtual gold and sees it as a safe haven asset as opposed to a settlement system. The use case of Bitcoin relies on the customers.
Three years ago, Tim Draper predicted the Bitcoin price to reach $10,000 by now. He stays positive concerning the growing Bitcoin value.
Tim Draper said:
“I predicted a $10000 price on Bitcoin in three years about three years in the past. Might take another year.”