The recent rally in bitcoin came at an opportune time for Silicon Valley-based venture-capital firm Draper Associates, which last night announced its much anticipated prediction for the No. 1 digital currency.
Speaking to a crowd of tech enthusiasts outside Draper University, Tim Draper, founder and managing partner of Draper Associates and Draper University said bitcoin BTCUSD, +4.59% would reach $250,000 by 2022.
The Silicon Valley stalwart famously purchased around 30,000 bitcoin in 2014, which were seized as part of the now-defunct Silk Road. At the time, the price of a single coin was valued at just over $500. Bitcoin was last traded at $8,126.30, making Draper’s investment worth more than $240 million.
Draper joins the Winklevoss twins as some of the most prominent bitcoin bulls. On Feb. 8, the founders of digital currency exchange Gemini, said that the bitcoin would one day disrupt gold and be worth 40 times its value, which at the time was just over $8,000.
Thursday’s announcement was outside Draper University in San Mateo, Calif., a private school focused on business and entrepreneurship.
“Believe it. It’s going to happen, they going to think you’re crazy. It’s gonna be awesome,” Draper told the enthusiastic onlookers.