Tim Draper, a prominent venture capitalist, predicts a significant increase in Bitcoin’s value in 2024, driven by several key factors including spot exchange-traded funds (ETFs) and the upcoming Bitcoin halving event.
During the Paris Blockchain Week, Draper spoke to Cointelegraph about his optimistic forecast for the cryptocurrency, suggesting a potential rise to $250,000 by year-end.
“If I had to predict, maybe we could see $250,000 by the end of the year; I mean, it’s looking pretty good,” he remarked, reflecting on his earlier 2022 price prediction.
The introduction of spot Bitcoin ETFs in the United States has significantly rejuvenated interest and capital inflows into Bitcoin.
These ETFs have made it easier for investors interested in Bitcoin but reluctant to hold it in self-custody, providing a safer and more familiar investment route through traditional financial institutions like Fidelity or JPMorgan.
Draper emphasized the protective role of Bitcoin against fiat currency devaluation: “I think that it gives people an opportunity to buy some Bitcoin and hold on to it so that they can take care of themselves when there’s a run on the dollar or the euro.”
He also noted Bitcoin’s increasing attractiveness as it becomes more commonly used for purchases and its finite supply, which contrasts sharply with the inflationary nature of fiat currencies.
“I don’t really need to hold on to any fiat currency that decreases in value over time because of political whims or government spending, or politicians that just decide they’re going to spend more money and inflate your money,” he stated, asserting Bitcoin’s security against inflation and economic instability.
Furthermore, Draper highlighted the anticipated impact of the fourth Bitcoin halving scheduled for April 20, which will reduce the supply while demand is expected to rise, naturally driving up the cryptocurrency’s price.
“If you’re an investor in the stock market, they say don’t bet against the Fed [U.S. Federal Reserve]. If you’re a Bitcoin buyer, don’t bet against the halving. It changes everything.
The supply shrinks, the demand increases and the price goes up. That’s natural economics — supply and demand,” he explained.
Draper’s views also include a broader financial strategy, suggesting that a small, single-digit percentage investment in Bitcoin could serve as a hedge against potential bank failures and the decline of sovereign currencies, enhancing financial stability for investors amidst global economic uncertainty.
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