Bitcoin bears are currently in control. The implosion of the FTX crypto exchange does not have anything to do with the success of Bitcoin (BTC) since the crypto is decentralized and FTX was not. Tim Draper, a billionaire venture capitalist, and serial blockchain investor are not ready to give up on his short-term Bitcoin price prediction despite the recent issues affecting the crypto sector.
Draper is sticking with his optimistic prediction that Bitcoin will explode to reach $250,000 in 2023 despite the current crisis in the crypto space fueled by FTX. He said in an interview on November 15:
“No change in the price prediction. Still $250,000 by early next year.”
The recent collapse of the FTX crypto exchange has nothing to do with the operations and success of Bitcoin since it is decentralized and the exchange was not, as highlighted by Draper. He said while referring to FTX creator and former CEO Sam Bankman-Fried:
“FTX was centralized, reliant on a single founder. When a currency is centralized — a central bank for instance — it has a single point of failure, and can also be manipulated.”
Draper believes that the fall of FTX would only trigger more decentralization to happen in crypto as the latest events have once more shown the largest vulnerabilities of centralization:
“I think this fiasco is going to bring on a lot more Bitcoin maximalists. Note that your money is not secure in a centralized system, whether crypto or fiat.”
Tim Draper also insisted on the importance of self-custody, which seems to come in line with the principles of decentralization. At the same time, he expressed lots of confidence in the Coinbase centralized exchange, saying:
“I also custody my tokens with Ledger and Coinbase. Neither of them is using my tokens to borrow or invest.”
Draper Says Bitcoin Still On Track To Hit $250K
Based on previous reports, Draper first made his famous Bitcoin prediction in 2018, projecting that BTC would surge to exceed $250,000 by the end of 2022 or early 2023. Interestingly, the investor has reiterated his prediction many times since, ignoring major bear markets and the fallout from the collapse of major investment companies and crypto exchanges.
Buy Bitcoin NowNot everybody holds the same amount of optimism about the price of Bitcoin in the short term. One BTC proponent went on Twitter on November 7 to criticize Draper’s prediction, arguing that it is clear that BTC will not hit $250,000 by mid-2023. Notably, he called for learning from the past, referring to the failed Bitcoin prediction by the late John McAfee.
Binance CEO Changpeng Zhao believes that the FTX fiasco has set the crypto sector back several years, with more regulatory scrutiny expected to come.
