Renowned venture capitalist Tim Draper sees Bitcoin tripling in value in 2024 due to inflows into spot exchange-traded funds (ETFs) and the looming Bitcoin halving.
Speaking to Cointelegraph during Paris Blockchain Week, Draper reiterated his belief that Bitcoin would drastically increase in value considering several factors in 2024.
“If I had to predict, maybe we could see $250,000 by the end of the year; I mean, it’s looking pretty good,” Draper said as he reflected on his previous price prediction for 2022.https://www.youtube.com/embed/36d1u3656YU
The approval of spot Bitcoin ETFs in the United States has been a critical driver of renewed interest and capital inflows into the Bitcoin ecosystem.
Draper believes the investment products have opened up a new avenue for Bitcoin-curious investors that might be daunted by the prospect of holding BTC in self-custody and also serve as a hedge against devaluing fiat currencies:
“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 highlighted the appeal for investors who want their respective fund managers to continue managing their portfolios. Access to a Bitcoin ETF allows investors to continue working with Fidelity or JPMorgan and have this new asset class managed as part of their wider investments.
Draper said that Bitcoin’s finite supply and increasing adoption as a payment option for goods or services would increase its appeal to the masses. At the same time, fiat currencies grapple with inflation and decreased purchasing power.
“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,” Draper said.
The venture capital investor added that Bitcoin remains a “place of great security” against inflation.
“I think I’ve actually started to see the lines cross. People feel more comfortable with their Bitcoin than they do with their dollars.”
The fourth Bitcoin halving is also set to have a significant impact on market dynamics. The event, earmarked for April 20, is one that investors should not underestimate, as Draper explains:
“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,” Draper said.
The venture capitalist also reiterated his belief that having single digit percentage exposure to Bitcoin is becoming a more attractive means of hedging against rising concerns over bank failures and devaluing sovereign currencies.
