Bitcoin, the virtual gold had been the highlight of 2017. Not only did it experience a surge in value but also in popularity. Whether they are haters or lovers, the cryptocurrency has been on everybody’s mind this year. Some call it a bubble or fraud while others consider it the beginning of a new cryptocurrency future.
BTC value had been swelling all year crossing milestones one after another. It crossed $10,000 in November and continued moving upwards. After the introduction of bitcoin futures on CBOE, the cryptocurrency surged further reaching $19,700 – almost $20,000. But suddenly out of the blue, bitcoin value dropped to $12,500 on December 22nd. Though the actual reason behind the sudden drop is not yet calculated, we believe that several small reasons may have summed up to cause the greater effect.
BTC investors are shocked and disappointed except for one investor who still believes in the potential of BTC. Tim Draper, founding partner at both DFJ and Draper Associates has been a huge supporter of the cryptocurrency for a long time now. In 2014, Draper bought 3,000 bitcoins for $600 each. Now his bitcoins are worth $213 million, with a 1,083 percent jump.
Bitcoin true believers can confidently ride this volatility out. Global currency demand continues to grow unabated.
— Tim Draper (@TimDraper) 22 December 2017
Along with holding $213 million worth of bitcoin, the venture capitalist is also betting on the red-hot cryptocurrency and blockchain as an investor. Draper Associates was listed as the fourth most active investor by CB Insights.
Draper believes that in the future “global cryptocurrencies will be commonplace and bigger than Fiat”.
In September, the Chinese government banned ICOs calling it “illegal fundraising”. Draper said that China will be the “big loser” as the technology will be enhanced and adopted by engineers and entrepreneurs. He highlighted that Japan, who legalized bitcoin will be “a big winner” in the end.
Draper is very hopeful for the future of bitcoin and believes that it might be treated as Euros and Yens one day.
“I’ve already invested in companies with Bitcoin many times. I suspect that other investors will follow suit and the regulators will get on board, treating Bitcoin as they treat pesos, yen, and Euros: as a currency. The benefits of investing in Bitcoin are that all accounting is done automatically on the blockchain, that smart contracts can replace fuzzy verbal contracts, and legal issues will be minimized,” said Draper.