Join our Telegram Channel!Get Bitcoin News stories in Telegram × DismissEarlier this week, Cointelegraph carried out an exclusive interview with Tim Draper, a multi-billion dollar investor, who shared his insights on mainstream adoption of Bitcoin and the digital currency’s viability as a long-term investment.Over the past few years, Draper contributed significantly to the Bitcoin industry.His investments on leading Bitcoin exchanges and Blockchain startups such as Coinplug and Factom have established a robust infrastructure for Bitcoin users across the world.2016 was the year of Bitcoin.Both small and large-scale Bitcoin exchanges saw a drastic increase in trading volumes and demand from investors and traders.Bitcoin also outperformed every asset and reserve currency throughout the past 12 months.Yet, the Blockchain market struggled to showcase commercially successful applications or platforms for global usage.Draper believes Blockchain technology is still in its infancy and is yet to show its true potential outside the realm of finance.

Companies like Factom are using enterprise-grade Blockchain to secure data and identities for sizable projects and institutions.“Bitcoin continues to spread widely.Soon everyone will have a Bitcoin wallet.Growth there is on a larger base.Blockchain is still in its infancy so growth rates should be higher.Of course, they depend more on the actual application.” He emphasized that both Bitcoin exchange and Blockchain markets are at early stages.Draper expects the Bitcoin exchange market to grow at a much faster rate throughout this year, following the lead of key players like Coinbase.Particularly at the end of 2016, investors and traders in countries like China and the United States sought out for Bitcoin as a safe haven asset or a “hedge against the system” as leading Bitcoin exchange BTCC CEO Bobby Lee said previously.Some investors purchased Bitcoin to avoid temporary economic uncertainty and the devaluation of reserve currencies, while others included Bitcoin in their long-term investment portfolios, predicting a massive increase in value over time.

Draper is an active participant of Bitcoin auctions and has won several of them in the past.bitcoin gewinn machenBitcoin auctions are an effective way to purchase large amounts of Bitcoin that are relatively difficult to secure through regulated Bitcoin exchanges.bitcoin forum nigeriaHe also has invested in many Bitcoin startups, as Draper believes Bitcoin startups will increase in value in relation to the digital currency.bitcoin anonymous debit cardThere are many investors that prefer to fund Bitcoin startups as a safer long-term option, while there are large investment firms attempting to purchase large amounts of Bitcoin directly from mining firms like BitFury, as mentioned by BitFury vice chairman George Kikvadze.bitcoin coo

In the end, Draper believes either investment will work out well in the long run.wwdc bitcoinSome investors like to focus on funding tech projects and startups, while others are currency traders in nature.bitcoin direct llc“I have done both.bitcoin roamingSome people are currency traders and some are tech investors.bitcoin maker a scamBoth should work out in the long run for Bitcoin,” explained Draper.total bitcoin countFor currency traders that hold Bitcoin as a direct investment, they will benefit from the short-term increase in Bitcoin value.Startups need capital and time to grow and thus will require patience from their investors.

Some currency traders are also holding Bitcoin as digital gold and sees it as a safe haven asset rather than a settlement system.The use case of Bitcoin ultimately depends on the users, it can be used as digital gold or a settlement system.As Draper explains, “The current uses of Bitcoin are just the tip of the iceberg.” Three years ago, Draper predicted the Bitcoin price to reach $10,000 by now.He remains optimistic regarding the increasing Bitcoin value and expects it to reach $10,000 in a year: “I predicted a $10000 price on Bitcoin in three years about three years ago.Might take another year.”has proven once again its highly repetitive nature.Whilst many people have called for the death of over the past few years, it has simply done what it always does and that is repeat.Many people have missed this by not looking at the bigger picture.has just played out over the past 3 years and is continuing to play out what happened during only on a larger time frame and has already begun the launch higher.

Most importantly this coincides with the infamous 235 day cycle.This cycle was derived from the early days of trading where each of the first four major tops from all time highs fell exactly 235 days apart.Since the market that began in 2014 the 235 day cycle could no longer coincide with new all time high tops but instead continued to top with runs that happened in the lead up and to this day has yet to be proven wrong.The next 235 day cycle tops on October 9.Expect chaos on the way up.Expect candles over $1000 from high to low.Expect inexperienced traders to be wiped out along the way.There is no safe entry price or safe stop loss only a target of $10k on October 9.by Tyler Durden Submitted by Charles Hugh-Smith via OfTwoMinds blog, So let's imagine a scenario in which tens of trillions of at-risk wealth suddenly seek an alternative--any alternative to staying in an asset class that's circling the drain.As my colleague Davefairtex observed recently, the paint isn't quite dry on bitcoin and the expanding host of other cryptocurrencies.

Initial enthusiasm for the latest cryptocurrency that's going to eat bitcoin's lunch generates outsized returns for early investors, but as glitches in the vision arise, the bubble of initial euphoria pops.Differing visions of bitcoin's future have divided its community of participants and miners, and hard forks have split other cryptocurrencies into competing camps.Meanwhile, the spectre of outright bans on bitcoin and cryptocurrencies by nations such as China adds uncertainty to the entire sector.Many observers expect that China's increasingly pervasive attempts to staunch the flow of capital out of China via capital controls will lead inevitably to strict limits on bitcoin or even a total ban on bitcoin transactions and mining in China.Since the majority of mining and transactions occur in China, severe limits or a ban would have an outsized impact on the bitcoin community.Many observers foresee the potential for a massive decline in the price of bitcoin should such a ban be imposed.

As if all these issues didn't generate enough uncertainty and skepticism, it seems as if every time the general public starts getting interested in cryptocurrencies, another exchange is hacked or another entry in the cryptocurrency sweepstakes blows up, sending the sector back into the "untrustworthy" abyss.But this minefield shouldn't blind us to the possibility of a path to $10,000 bitcoin.Skepticism is always prudent in any financial matter, especially a speculative one, so put on your skeptical thinkijng cap and follow along.The problem is everything is now speculative.Do you really think the $100 trillion private-sector bond market (i.e.the bet that debtors will pay back what they borrowed with interest) is "safe," as in guaranteed, bullet-proof, no serious loss of capital is possible, etc.?How about the $60 trillion sovereign (government) bond market?The problem with sovereign bonds is governments with central banks can create "money" out of thin air to pay interest and redeem maturing bonds, but this devalues the currency.

So getting back 100% of your nominal investment doesn't mean you're whole; if the currency the bond is denominated in fell 50%, bondholders suffer a 50% loss in the purchasing power of their initial capital.How is that not speculative?How about the $70 trillion in global stocks?Yes, we all "know" that stocks will never go down ever again because central banks can keep inflating new credit bubbles indefinitely--but let's not kid ourselves: history tells us that stocks remain a speculative gamble.How about the $62 trillion in unsecuritized debt instruments?How much of this debt is collateralized by fast-dying malls, bubble-priced real estate, or Unicorn-type valuations in other assets?Take a gander at this chart of financial assets, roughly $300 trillion, and note that this doesn't include real estate, housing, etc. Global real estate is estimated at $217 trillion, roughly two-thirds of financial wealth.Together, these assets add up to over $500 trillion.Once again, the larger context here is: all these assets are speculative.

Yes, even real estate.Consider this, if you missed it: When Assets (Such as Real Estate) Become Liabilities.Then there's the currency market.Care to argue that currencies are non-speculative investments?Is that why Chinese wealth is gushing out of the yuan, because it's so guaranteed to never lose purchasing power?Is that why the euro fell from 1.40 to 1.05, because it's a guaranteed safe investment?Venezuelans learned the hard way that fiat currencies when mismanaged by the issuing nation/central bank can destroy wealth on an unimaginable scale.So now let's turn to bitcoin, with a market cap of about $14 billion, down from a recent high of $18 billion.Now compare that to $500 trillion.If we take 1 measly little trillion, bitcoin's entire market cap is 1/70th of that.So let's imagine a scenario in which tens of trillions of at-risk wealth suddenly seek an alternative--any alternative to staying in an asset class that's circling the drain.We're accustomed to "rotation," the nice little game where bonds can be sold and the capital invested in real estate or stocks, or vice versa.

We're less accustomed to all the conventional asset classes toppling like dominoes.Where do the fleeing trillions go when stocks, bonds and real estate are all going down in a chaotic sell-off?Gold and silver are time-honored safe havens, but it's not too difficult to foresee the potential for limits or bans on gold, or supply constraints.Some percentage of investors will consider alternatives.In such an environment of a crowd rushing for increasingly narrowing exits, what thin slice of institutional and individual investors will take a chance that bitcoin might hold or even increase its value as a major currency melts down, or some other global financial crisis unfolds?Shall we guess 1/10th of 1% of the panicky fleeing wealth will take the chance that bitcoin will be a safer haven than the conventional assets that are cratering?So 1% of the $300 trillion in financial assets (setting aside the $200 trillion in real estate for the moment) is $3 trillion, and a tenth of that is $300 billion.

So what happens to bitcoin's price if $300 billion rushes through the wormhole?On the face of it, market cap would go up 20-fold from current levels.Since the number of bitcoin is limited to around 18 or 19 million (subtracting those bitcoin lost forever to hard drive crashes, etc., and those yet to be mined), price would also have to rise 20-fold.OK, so 1/10th of 1% of global financial wealth flowing into bitcoin strains credulity.Let's make it 1/20th of 1%, or $150 billion.That still pushes bitcoin's market cap and price up 10-fold.That's the pathway to $10,000 bitcoin.But if you're of the mind that $500 trillion in current assets might be revalued considerably lower in a global crisis, then a tiny sliver of that fast-evaporating wealth finding a home in bitcoin (or other cryptocurrencies) doesn't seem all that farfetched.You want farfetched, how about $3 trillion in panicky fleeing capital flooding into bitcoin?Yes, a whole, gigantic, enormous 1% of speculative financial "wealth" and "money" seeking a home in cryptocurrencies.