If you bought Bitcoin late last year, then most likely, you might be questioning your decision. Bitcoin was able to reach its peak at near $20K in mid-December of last year and it has dropped all the way below $3,500 this year.
Since Bitcoin Cash hard fork, it has created a number of problems for the crypto market. Bitcoin dropped so low that Bitcoin miners are now turning off their rigs and has decreased the hash rate in the network. In fact, an estimated 600 thousand to 800 thousand mining rigs were turned off since it Bitcoin is too cheap to cover for the expenses.
$250K By 2022
But there are crypto experts who remained optimistic to what the future has in store for Bitcoin and the rest of the other cryptocurrencies. Venture capitalist and crypto investor Tim Draper believes that cryptos will soon make up as much as two-thirds of the entire world’s currency value. Now, that is a bold prediction considering how Bitcoin has lost 80% of its value since its all-time high.
Currently, the crypto market is at an estimated $130 billion while fiat is at $86 trillion. According to Draper, digital currencies are cheaper to operate. And also, in order for Draper’s prediction to come true, there has to be an additional $43 trillion worth of investment to move into the market.
Draper said that “I mean, just by that alone, just that they cost you less, it’s going to be better for people”. He also mentioned that “And so they’re going to move to crypto and they’re going to go away from the political currency—they call it fiat”.
He also believes that there will be more countries that are going to utilize cryptocurrencies. He said that “That’s the way it’s going to move. And so the countries that are forward thinking are saying, this is the way it’s going to be. So we’re going to make a huge mistake by trying to cling to our old currency”.
For Draper, he still believes that Bitcoin is going to reach $250K by 2022. He even reiterated his prediction saying he is “absolutely solid” about this.
Many are waiting for institutional investors to enter the picture and invest in the market. Unfortunately, despite the regulatory changes, things are happening slowly for the industry. The Securities and Exchange Commission recently even reinvigorated its interest in implementing strict rules and regulations. It even targeted ICOs that are selling unregulated securities<.a>.
Will The Prediction Happen?
Now, it remains to be seen whether or not by 2022 that the value of Bitcoin is going to reach $250K. In fact, we’ve heard of predictions that didn’t come true over the past few months. For instance, Mike Novogratz thought that Bitcoin at around $6,200 to $6,500 was already the bottom for the cryptocurrency. However, we’ve seen the reality that it isn’t really the case. And so far, many are losing money on Bitcoin.
But should you be buying Bitcoin now that it is still low? If you will look at what whales did after Bitcoin dropped below $6K, it seems that it is the right move to make.