Tim Draper stands at $ 250,000 in 2023
We recently spoke to Tim Draper, founder of Draper Associates, arguably one of the most insightful and successful investors in crypto and emerging technologies. DFJ, Draper University, and asked him about his December 2019 forecast that Bitcoin would hit $ 250,000 in 2023.
Based on his prognosis and his firm belief in Bitcoin and the potential of decentralized overalls for digital currencies, we asked if he felt like he was still saying “I told you” in 2021.
“No, I wouldn’t say that. I won’t say that I told you until it happens,” said Draper. “But I make my predictions and stick to them.”
We asked Draper if, even given the recent slump, he expected Bitcoin to exceed $ 100,000 in 2021, and Draper simply confirmed:
“Yes. Beyond that.”
In 2014, Draper won 50,000 BTC in US Marshall’s auction and invested in over 50 crypto companies, including Coinbase, Ledger, Tezos, and Bancor, among others. He’s not a bitcoin maximalist, as he explained, and we asked him, “What about Dogecoin? What drives it “
“A dog? People like it. It’s cute,” said Draper. “And of course Elon Musk talked about it.”
Tesla is suspending BTC purchases
Elon Musk talked a lot about Bitcoin and Dogecoin in 2021. After months of praising Bitcoin’s strengths, Musk on May 12th tweeted a statement In part it says: “Tesla has suspended vehicle purchases with Bitcoin. We are concerned about the rapidly increasing use of fossil fuels for bitcoin mining and transactions … “
If Elon had a lifting effect on Bitcoin with his support, two days of criticism had deleterious effects, falling 9.5% on Thursday, according to Bloomberg.
Musk is not content with simply raining on the parade of a more than a year old BTC bull run with minor corrections, but supports the most famous meme token in the world, Dogecoin, elsewhere.
Very surprising, a lot of crypto
Elon Musk has previously expressed his support for Doge and has earned the nickname “The Dogefather”. recently tweeted, “Working with Doge developers to improve the efficiency of system transactions. Potentially promising. “
Musk’s support has taken Dogecoin from $ 0.43 to over $ 0.50 – more than half the $ 1 mark that backers are hoping for to demonstrate the token’s legitimacy.
Supporters of the coin on FinTok – TikTok’s crypto investment arm – naturally want more than just legitimacy, as you can see from the pinned tweet @TikTokInvestors. You want to get this dog past $ 1 at metaphorical escape speed.
The environmental impact of BTC
Environmental awareness has increased through 2021 and has come to a head with the announcement by Musk and Tesla, bringing BTC below $ 50,000.
However, some industry leaders believe that Bitcoin’s environmental impact is disproportionately taken into account.
“Users need to understand that the representation of power consumption can be exaggerated. Singling out bitcoin mining for its electricity usage can sometimes seem subjective, ”said Rob Chang, CEO, Director and Co-Founder of Gryphon Digital Mining, an environmentally friendly bitcoin mining company that claims to use 100% renewable hydropower.
Joseph Fiscella, Blockchain Developer and Founder of Florincoin (Flo network), now known as the PIN Network, challenged the idea that Bitcoin has the polluting effects that critics claim.
“Bitcoin mining is not location-dependent. Bitcoin can be mined anywhere where electricity can be generated. This is not the case with almost every other power consumption giant that needs to be near a large population to be useful, ”said Fiscella.
Jag Sidhu, CTO Blockchain Foundry and developers at Syscoin stated that Bitcoin’s energy consumption needs to be measured by its total direct and indirect consumption, but indicated that the footprint for individual users is getting smaller as it grows.
“The absolute amount is directly proportional to the valuation of the Bitcoin ecosystem, not just its own market capitalization, but the total value derived from it through the multitude of industries in which Bitcoin directly or indirectly secures value through billing. However, as the industry grows, so does the energy density used per transaction, which minimizes the individual space required per user, ”said Sidhu.
Sidhu assumes that Bitcoin will only have a limited ability to reduce energy consumption per user, and through merge mining in compatible blockchain networks it can achieve higher user density and less energy per user.
“If Bitcoin remains as SoV, it looks like the density increases only slightly and so the energy consumption increases proportionally … the inferred value and density grow through merged networks like the Syscoin network … that allow utility that Bitcoin cannot.” “Said Sidhu.
Of course, some are hoping to not only tackle the environmental impact of Bitcoin mining, but also achieve an improvement in the environment.
“The carbon credits are great, but they are not enough on their own to explain the impact crypto has on the planet. The carbon offset should be done together with blockchain solutions that use the least amount of energy possible. The financial revolution should be a net positive, not a net negative, ”said W. Sean Ford, COO of Algorand Network said.
Luis Felipe Adaime, CEO of MOSS, a Brazilian company that has issued carbon credits for projects in the Amazon, believes Bitcoin’s environmental impact is undeniable and needs to be managed.
“BTC’s proof of work is a highly complex, energy-consuming process that results in high greenhouse gas emissions, mainly through the burning of fossil fuels. ETH is relying on proof-of-stake to tackle emissions from the Ethereum network. There are reasons to believe that the growing popularity of BTC will lead to a faster adoption of green energy, but in the meantime, the carbon footprint of the world’s largest cryptocurrency is undeniable, “Adaime said.
In 2021, it seems clear that Bitcoin will meet global demand for decentralized digital currency. As long as there is a use and a demand, Bitcoin will be part of our reality – but it doesn’t have to be at the expense of the environment.
“Blockchain projects have to understand that the responsible use of renewable electricity and profitability are not mutually exclusive. There is a story that renewable energies are more expensive energy. That’s just not the case, ”said Chang.
Originally appeared in Benzinga.