Tim Draper: Bitcoin's Price Still Headed to $10k

Despite continued interest from major payments companies and thought leaders, the price of bitcoin has declined in recent weeks, as optimism surrounding New York's proposed bitcoin regulation gave way to backlash and the market grappled with the widespread use of new and more complex financial tools.

Still, it's arguable that no investor has been more exposed to this recent price decline than noted venture capitalist and Draper Fisher Jurvetson (DFJ) partner Tim Draper, who on 2nd July revealed he purchased all of the nearly 30,000 BTC seized from now-defunct online black market Silk Road and sold by the US government.

In a new interview with CoinDesk, Draper revealed he has been surprised by bitcoin's recent decline in value, though he remains optimistic in its long-term value as an asset.

Draper told CoinDesk:

The remarks are notable given that, should Draper have paid market price for the BTC holdings, he would have lost roughly $5m on his investment to date.

Draper also addressed his overall investment strategy and recent moves, most of which have targeted bitcoin startups in emerging markets.

The 56-year-old investor, who has contributed to recent funding rounds raised by BitPagos, Korbit and Volabit, told CoinDesk that he believes these companies will ultimately succeed in the face of steep challenges.

Draper's remarks suggest that he foresees these companies being able to overcome any obstacles posed by regulation and a current lack of consumer awareness, stating:

Price decline aside, Draper said he believes that investors should continue to seek opportunities in the bitcoin market, saying he would "encourage people to buy bitcoins and spend them".

When asked what advice he would provide to investors and entrepreneurs observing the market, he pointed to bitcoin's long-term utility as well as its low-cost transaction network.

Draper said:

He went on to suggest that, in this view, investors should continue to seek opportunities available by both investing directly in bitcoin and its support infrastructure.

"My thinking is that bitcoin is here to stay," Draper concluded.

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