VC Supports Bitcoin After Price Decline
In recent weeks, although the crypto currency experienced continued interest from leading payments companies and thought leaders, the value of Bitcoin dropped. It was said that the Bitcoin regulations led to this. It is also understood that the market struggled with the common use of new and more intricate financial tools.
Both of these factors were very recently cited by Bitcoin hedge fund Pantera Capital. These were seen as the reasons behind the price decline witnessed in July. At the time, the price of 1 BTC has dropped to $650. This increased investors’ interest.
The US government’s auctioned about 30000 BTC to a price of $472 at the time of publication. These were seized from Silk Road, the online black market, and then sold.
It is still arguable that no investor has ever been more exposed to this current price decline than Tim Draper. Tim Draper is a well-known venture capitalist and a partner at Draper Fisher Jurvetson. He is a 56 year old investor.
Draper shared on 2nd July that he bought almost all of the 30,000 BTC that were auctioned by the US government.
He mentioned in a recent interview that the decline in price was unexpected and he was very surprised by the sudden change. He is a little disappointed but he is still optimistic about Bitcoin. He strongly believes that his asset has very high long-term value.
In his statement he shared his opinion about the incident and about Bitcoin generally. He guesses that the market’s condition is not what it seems like. An entire economy is under construction. He is farsighted and has a price target of $10,000 in 3 years period.
An expert in the market pointed out that for the quantity of Bitcoin Draper owns, if he had to pay the actual market price he would face a loss of roughly $5m.
Draper also indulged in the topic and discussed his overall investment strategy. He explained what his next moves will be. Most of his moves involve Bitcoin start-ups in developing markets as targets.
The venture capitalist has contributed to latest funding rounds raised by BitPagos, Volabit and Korbit. He genuinely believes that these companies will be successful ultimately.
This comment about them gives a hint that he anticipates these firms to be strong enough to overcome all sort of obstacles that are posed by regulation and deficiency of consumer awareness.
Draper stated that these companies make it simpler for people to do business in their own countries.
Keeping the sudden decrease of price aside, Draper thinks that the investors must keep looking for opportunities in the Bitcoin market. He urged towards them and said, “Encourage people to buy bitcoins and spend them”.
He explained Bitcoin’s long-term utility and less expensive transaction network when asked to say something directed to entrepreneurs and investors who observe the market.
Draper compared Bitcoin’s service and charge with those of Western Union to prove his point.
Even though the price decline has threatened him, Draper refuses to lose hope in Bitcoin’s potential. He too thinks that Bitcoin is here to stay.