• FTX debacle weighs on Bitcoin & Co.
• Tim Draper thinks recovery is imminent
• Bitcoin could replace credit cards as a means of payment
Fatal bankruptcy of FTX
The bankruptcy of crypto exchange FTX by ex-scene star Sam Bankman-Fried is still making waves. The mood in the Bitcoin, Ether & Co. market is still bad, which is reflected in the sharp declines in cybercurrency prices. There are also growing calls for regulation of the sector to protect investors from losing their assets. ECB Director Fabio Panetta recently attested to the abrupt end to the hype surrounding digital currencies.
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Tim Draper finds critical words for FTX
Venture capitalist Tim Draper is sticking with cryptocurrencies despite recent bad press for the industry – and considers FTX’s bankruptcy to be of little consequence. “Bitcoin is decentralized. FTX has been centralized around one person,” the market insider said in a Twitter post. “Decentralized currencies are the big opportunity we have for economic development. Governments need to develop software to tax companies operating on a closed Bitcoin platform so that they have more confidence in Bitcoin.”
Bitcoin is decentralized. FTX was centralized around a single person. Decentralized currency is the great opportunity we have for economic evolution. Governments must design software to tax businesses operating in a bitcoin walled garden so they have more #trust in #bitcoin.
-Tim Draper (@TimDraper) December 3, 2022
No second Theranos
In an interview with MarketWatch, Draper continued his criticism of Bankman-Fried. He never saw the platform founder as a pioneer in the crypto industry. “It’s about people who leaned out of the window too much.” He also previously criticized providers who did not offer clear transparency to their customers. “I’m very suspicious of DeFi[-Plattformen] and avoided most of them,” the investor told the market portal.
Draper says no comparison can be made with Theranos, Elizabeth Holmes’ health technology company, which advertised effective blood tests that turned out to be fraudulent. He was also one of the startup’s financiers at the time. Galaxy Digital CEO Mike Novogratz previously told CNBC that they “basically have a situation” reminiscent of Theranos.
Bitcoin is expected to reach $250,000 in 2023
Despite the current difficulties, the crypto market will recover according to Draper. The financier previously said that Bitcoin would hit $250,000 by the end of 2022, but has now pushed back its price target to June 2023. “I have extended my forecast by six months,” Draper said in an email. email to CNBC. “$250,000 is still my number.” The expert is certain that a “flight to quality and decentralized cryptocurrencies such as Bitcoin” will take place in the crypto market. Cryptocurrencies that perform weaker and do not follow the trend would become “relics” during this.
Crypto investors are said to be taking Bitcoin to a new high
Draper also sees a primary reason for the upcoming price hike of the largest market-cap-weighted cryptocurrency. The investor is certain that Bitcoin will be especially popular with women. “I expect the dam to burst soon as women control 80% of retail spending and only one in seven bitcoin wallets are currently held by women,” Draper told CNBC. According to a survey conducted by Momentive on behalf of CNBC and Acorns, twice as many men as women currently invest in digital currencies.
Bitcoin could revolutionize payment transactions
Draper is certain that Bitcoin could soon replace credit and debit cards as a payment option. According to CNBC, providers such as Visa and MasterCard currently charge merchants fees of up to 2% for credit card payments. With Bitcoin, however, this payment can be avoided. “Once retailers realize that 2% can double their profits, Bitcoin will be ubiquitous,” the market analyst said. “If people can buy their food, clothes, and housing with bitcoin, they will have no use for centralized fiat dollars.” The US Dollar is falling behind the crypto veteran simply because it is “centralized and unpredictable.”
By the way, according to Bitcoin Draper, Bitcoin Draper is also expected to move north in 2024. Then the next halving event is scheduled, during which the number of newly created Bitcoins per block and given to the miner as a reward will be divided by two. This limits the supply of all available units of the currency.