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Tim Draper Nets $89M from Bitcoin Investment
Smart Money Makes Money
Tim Draper, an American venture capitalist and crypto evangelist made over $89M by investing in Bitcoin. The VC managed to purchase a bulk of 30,000 BTC via FBI auction back in 2014. The funds were originally seized by the FBI from the closure and arrest of Ross Ulbricht and the Silk Road, a dark-web narcotics store.
Mr. Draper managed to outbid all his competition, paying slightly over $632 per coin. In total he payed just below $19M for a total of 30,000 BTC. Even in todays rough market conditions, Mr. Draper's cache of Bitcoin is worth roughly $108M, meaning that he made $89M in clean profit. At all-time-high prices, his profits would be in the $570M range.
Tim Draper has been a constant figurehead at many blockchain and cryptocurrency conferences. Like many other crypto influencers, he is extremely optimistic when it comes to Bitcoin's future and sees it as a long-term investment.
In an interview to thestreet.com he said the following on Bitcoin:
"This is the beginning of something that's bigger than the internet ever was. The internet went after information, communication, gaming, and entertainment. They are all $10 billion to $100 billion dollar industries -- maybe [one or two are] trillion-dollar industries."
Regarding Bitcoin's price, he's sticking to his $250,000 prediction:
"This is going to be so big so if you see a dip, jump in. Maybe it will dip further but boy, I made that prediction and I'm sticking to it. $250,000 by 2022 for Bitcoin."
Many Bitcoin "whales" like Tim have adopted a long-term investment strategy which can be summed up simply: Buy cheap & do not be afraid of dips or excited about peaks in the short-term. Similar minded investors include: Peter Thiel, Roger Ver & John McAfee.