Billionaire venture capitalist Tim Draper has just doubled his bullish call on bitcoin as CCN reports. He claimed that bitcoin is bigger than the Internet. Referring to past, he stated it is wrong to call Dot Com a bubble as we still use the Internet. It didn’t go bust. And cryptocurrencies are an even bigger deal, according to him.
Draper is expecting bitcoin to cost $250,000 by 2022. “This is bigger than the internet. It’s bigger than the Iron Age, the Renaissance. It’s bigger than the Industrial Revolution,” claimed Draper. John McAfee has made an even more astounding prediction. He expects bitcoin to be worth $1,000,000 by 2020.
Currently, bitcoin is trading slightly over $9,000, which is also more than 50% off its January high. This gives bitcoin a market valuation of $160 billion, which is slightly less than 40 percent of entire cryptocurrency market’s valuation.
The second most valued cryptocurrency is ethereum. It’s a digital currency used on a smart contracts platform. But, users can use it to pay at some locations. It currently trades at $665, giving it a valuation of $66 billion.
Meanwhile, a survey conducted by Thomson Reuters indicated that as many as 20 percent of financial institutions could begin trading cryptocurrencies this year. George Soros has already announced that he’s going into crypto trading.
A majority of these digital currencies is based on the blockchain, a technology likely to revolutionize various industries. Blockchain is more efficient than current technologies. However, there are over 1,500 currencies available with new Initial Coin Offerings (ICOs) coming to the market almost daily.
Many of these will prove worthless, so investors need to be careful as they navigate through cryptocurrency markets. At the same time, speculators make coin valuations very volatile. It is not uncommon for a digital currency to drop or rise 50 percent in a matter of few days. It is not an easy market to invest or trade. But a great promise is there.