In a recent interview with TheStreet, Tim Draper, the venture capitalist investor and billionaire Bitcoin bull, echoed his bullish sentiment that Bitcoin could reach $250,000 a coin by 2022.
The venture capitalist told the journalist that he first started investing in the crypto space right before the Mt.Gox disaster. 'So that money disappeared and then I thought: Too bad.'
'I thought virtual currency was really going to take off. We were going to have this new kind of currency and it was going to be awesome and I thought Mt. Gox's collapse was going to be the end of it. But Bitcoin only dropped about 10% or 15% that day ... on news that basically the biggest exchange just stole a whole bunch of money. But then I thought: Wait a second. People really need this. This is really important. And so I started buying a little bit at a time.'
Tim Draper goes on to explain how he ended up buying Bitcoin at the U.S. Marshals' auctions in 2014. U.S. Marshals had seized 144,336 Bitcoins from the operators of Silk Road, and put them all up for auction.
'They put it up for auction. The bidders were all ... sort of venture capitalists and a couple of other people. They were all talking about what kind of a deal they were going to get. There were nine lots and how it was going to be below market. The market price for BTC was $6.18 at the time.'
'I thought: You know, if I want this stuff I might as well bid above market. Here was my thinking: Either this thing goes to nothing and -- you know, too bad -- or it goes sky-high and nobody's going to care that I paid 5% more for it. So I bid up to $632 and I didn't just get one lot, I got all the lots. So I was a little bit heavy in Bitcoin there for a while.'
Draper ended up buying about 40.000 Bitcoins, which would be worth about $250 million at current prices.
He ended the interview by echoeing his previous prediction of $250,000 by 2022 per Bitcoin.
'This is going to be so big so if you see a dip, jump in. Maybe it will dip further but boy, I made that prediction and I'm sticking to it. $250,000 by 2022 for Bitcoin.'