American venture capitalist Tim Draper has become known for his bullish prediction that bitcoin will reach $250,000 by 2022. According to CNBC’s Fast Money program aired Dec. 19, there may be support for Draper’s massive call.
The program opened with a host asking analyst Brian Kelly whether the bullish prediction had any basis,
I got to be honest with you Brian, when the producers talked about this earlier today, I said ‘I don’t know if we should talk about it’, because I felt like it was so bold it was almost irresponsible. But Draper’s a well-known guy, he’s not going to say anything he doesn’t believe.
Using a logarithmic scale, Kelly went on to explain to viewers that bitcoin has been trading in a broad channel since 2013, with the peak extending to around $200,000 in 2020.
Kelly further supported Draper’s prediction by saying that bitcoin would likely eat into gold’s market cap in the coming years. Per his words, “if Bitcoin were at $250,000, that would be about a 4.5 trillion-dollar market cap, which would be about half the market cap of all the gold in the world. He continued,
And so I think Tim Draper thinks–and I certainly have some of this view–bitcoin is going to take market share from gold. So if you think over the next two years it can take 50 percent of that market share, then that prediction isn’t too far out of whack.