Time Draper invested in the crypto currency once again, taking advantage of the recent price drop.
Renowned venture capitalist Tim Draper has bet further $400,000 on bitcoin. He seems very confident that bitcoin will rebound.Also known for co-founding the investment firm called Draper Fisher Jurvetson, Draper said via an e-mail that he purchased 2,000 bitcoins for the price of around $200 last week.He is popular in the bitcoin industry for being one of the biggest buyers in United States government auctions for bitcoin in 2014.
He is now betting that the digital currency will rebound back after the recent price drop. Even after the price dropped by more than 70% over the last 1 year, he seems very certain about his investment.Only a few days ago, price of bitcoin dipped by over 30% and fell much lower than $200. While the skeptics and critics were already raising questions about the currency’s future, Draper invested more money.Amid the growing regulatory oversight and after the crypto currency’s slide, many are convinced that the end of bitcoin is near.
Bitcoin was officially stated as the biggest money-losing investments of last year. Critics said it was worse than the ruble or oil.Last year, Draper purchased 32,000 bitcoins during the second government auction. He has also been investing in different bitcoin related start-ups.He had expressed his aim about bitcoin a few months back, saying ““It’s money that can now be put to good use. A lot of people are hoarding their bitcoin.
I can allow it to proliferate throughout the world. This is a long-term, big opportunity for the world.” He thought bitcoin had the potential to become the foundation for a changed financial industry.Draper’s intention is to help build on the bitcoin technology, which can later be used to enable cheap international money transfers or to buy valuable assets like gold.
While Tim Draper did not specify the price he paid in the previous auctions, price of bitcoin was more than $600 when the June auction was held.Even at age 56, Draper is out to disrupt the industry which has supported 3 generations of his own family. He gave up his active role in DFJ’s latest fund in 2014 and switched his focus to a promising idea in the finance industry.When he wasn’t fully prepared to explain this ideas about bitcoin, crowd funding and finance, he once said, “Both venture capital and investment banking have become oligopolies that don’t serve customers as well as they should.I’m looking at all that and saying that venture capital is going to change.
I want to get out in front of that.”
