Billionaire Tim Draper Didn’t Expect US Government To Be ‘Paranoid’ About Bitcoin

Shalini Nagarajan
Last updated: | 1 min read
Billionaire Tim Draper Didn’t Expect US Government To Be ‘Paranoid’ About Bitcoin
Source: DALL·E 3

Venture capitalist Tim Draper has once more attributed the failure of Bitcoin to reach his $250,000 price target to the actions of the US government.

He originally predicted Bitcoin would hit $250,000 by 2022. But he now expects it to happen by 2025.

Draper admitted in a recent Bloomberg interview that he miscalculated due to some unexpected factors.

“I didn’t expect the US government to be so paranoid about it,” he said, adding:

“I expected the government to figure out how to tax in it, and figure out how to allow people to do business with Bitcoin as their base currency.”

“And it’s happened in a number of other countries. And that’s why Bitcoin is doing so well — as other countries are recognizing how valuable it is to them,” Draper further said.

Did Spot ETF Approvals Rekindle US Crypto Confidence?

The US government has not been particularly receptive to Bitcoin and has been cautious in its handling of the cryptocurrency. Meanwhile, industry insiders feel the US Securities and Exchange Commission often enforces regulations rather than preemptively creating them for the industry.

Following the turbulent events of 2022, scrutiny of the crypto industry has further intensified in the US. After FTX’s collapse, Treasury Secretary Janet Yellen called for more effective regulation of cryptocurrency markets.

Additionally, the SEC’s legal actions against Coinbase and Binance have detrimentally impacted the crypto and broader Web3 sector.

As a result, many firms and investors opted to relocate from the US to regions with more transparent regulations.

Nevertheless, the recent approval of 11 spot Bitcoin ETFs in the US has improved the industry’s perception of the country.

Tim Draper Envisions Bitcoin-powered Economy

In 2018, Draper predicted Bitcoin would hit $250,000 by the end of 2022. His forecast was based on a belief that Bitcoin would replace 6% of all fiat currencies issued by governments in circulation as of 2018.

While Bitcoin is used for payments in some places, there is no strong evidence of it widely replacing fiat currency. But Draper expects that to change.

“I think that there will be a moment in time when I can buy my food, clothing and shelter all in Bitcoin. And people won’t want dollars anymore,” he said.

Bitcoin last traded around $42,466, around 38% lower than its all-time high of $69,000.