Tim Draper Still Has $260 Million Worth of Bitcoin at $6,500 Price Point

In a recent, exclusive interview with The Street, billionaire investor Tim Draper stated that he stands by his $250,000 Bitcoin price target by 2022.

While the price of Bitcoin has declined by more than 65 percent since late 2017, the holdings of early Bitcoin investors remain relatively high against the U.S. dollar.

Draper, who invested in Bitcoin in 2014, still has more than $260 million worth of Bitcoin, excluding his investments in other cryptocurrencies including Tezos.

In early 2014, the price of Bitcoin was volatile in the $1 to $5 range.

Draper stated that he acquired Bitcoin in small batches, starting from approximately $2, and bought his first large batch of Bitcoin when the U.S. Marshall's Office seized funds from Silk Road operators and put it in an auction.

Predicting Bitcoin would either go down to zero or up to many billions of dollars, Draper outbid everyone with $632, with over 5 percent in premium, and purchased all 12 lots.

The 40,000 Bitcoins Draper purchased in 2014 are now worth $260 million.

Considering that nearly 20 percent of Bitcoin are lost and not in circulation due to lost wallets and funds, that would place the market cap of Bitcoin closer to the $6 to $7 trillion region.

For Bitcoin to achieve that, it will need to take a considerable portion of the offshore banking market as a robust store of value, valued at over $30 trillion, while operating as a consensus currency.

With institutional investors planning to enter the market through crypto custodian solutions, in the long-term, it is possible that Bitcoin can evolve into a major store of value alongside gold to target large-scale investors in the offshore banking market.