[2019-09-21] Tim Draper Still Has $260 Million Worth of Bitcoin at $6,500 Price

[MathGame]

In a recent, exclusive interview with The Street, billionaire investor Tim Draper stated that he stands by his $250,000 Bitcoin price target by 2022.

While the price of Bitcoin has declined by more than 65 percent since late 2017, the holdings of early Bitcoin investors remain relatively high against the U.S. dollar. Draper, who invested in Bitcoin in 2014, still has more than $260 million worth of Bitcoin, excluding his investments in other cryptocurrencies including Tezos.

How Draper Built His Bitcoin Portfolio
In early 2014, the price of Bitcoin was volatile in the $1 to $5 range. Draper stated that he acquired Bitcoin in small batches, starting from approximately $2, and bought his first large batch of Bitcoin when the U.S. Marshall’s Office seized funds from Silk Road operators and put it in an auction. Draper said:

“Small amounts, a little bit at a time. That price was about $2.50 and then it was starting to really rip and the U.S. Marshall’s Office confiscated the Silk Road money from Bitcoin. They put it up for auction. The bidders were all sort of venture capitalists and a couple of other people. They were all talking about what kind of a deal they were going to get.”

At the time, in late 2014, 12 lots featuring thousands of Bitcoins were auctioned off and venture capitalists were allowed to participate in the auction. Predicting Bitcoin would either go down to zero or up to many billions of dollars, Draper outbid everyone with $632, with over 5 percent in premium, and purchased all 12 lots.

“Here was my thinking: Either this thing goes to nothing and–you know, too bad–or it goes sky-high and nobody’s going to care that I paid 5 percent more for it. So I bid up to $632 and I didn’t just get one lot, I got all the lots. I think it was about 40,000 Bitcoins.”

The 40,000 Bitcoins Draper purchased in 2014 are now worth $260 million. Subtracting the initial $22.4 million investment Draper made, even after a 65 percent correction, Draper’s profit from his 2014 investment is $237.6 million.

Continue @ https://cryptoslate.com/tim-draper-still-has-260-million-worth-of-bitcoin-at-current-price-6500/

[Lucius]

Tim Draper is give his prediction some 5 months ago and I doubt he will change his opinion, I do not think it's a person who one day thinks one, but the next day is something completely different. Some will say he is just hungry for more money and he is bullish toward BTC because he bought large quantities in the early stages, but I think that he believes in technology and cryptocurrency.

That 260$ million worth of BTC is just from Silk Road auction, but in addition to that he say that he bought even before that - so I belive he have much more then 260$ million worth of crypto. It is also a known fact that he is not only invest in BTC but in more then 40 others coins in the past few years.

As for his prognosis 250 000$ by 2022 I think it is have some chance even though at this point it is certainly difficult to conceive that BTC can go from 6000$ to such huge value in 4 years. I say before that if only half of his prediction become reality it will be a great thing, personally I would not have anything against 100 000$ by 2022

[1Referee]

That 260$ million worth of BTC is just from Silk Road auction, but in addition to that he say that he bought even before that - so I belive he have much more then 260$ million worth of crypto.

I'm pretty certain that he has way more than that. He's balls deep into Bitcoin and these auctions were a fantastic opportunity for him to save plenty of time and money because of how difficult and expensive it is to buy large numbers of coins through an exchange. I can't look in his tax records, but he's definitely hiding a large percentge of his coins somewhere. Who doesn't?

For the first ever time we have a convenient way of storing wealth in a way that governments can't freeze or seize. On top of that, in the early days it was much easier to buy coins without sacrificing much of your privacy, so he has been lucky in that regard. The same goes up for Vitalik and all other large Ether holders, they are on purposely undervaluing themselves. 

In my case, only ~15% of my total holdings are public record (which I do pay tax over), the rest is hidden neatly. It's none of anyone's business where these funds are, and I'm definitely not paying one single penny in tax over that what isn't known. Taxing idle funds is theft in my book. It's my money.

[milewilda]

“Here was my thinking: Either this thing goes to nothing and–you know, too bad–or it goes sky-high and nobody’s going to care that I paid 5 percent more for it. So I bid up to $632 and I didn’t just get one lot, I got all the lots. I think it was about 40,000 Bitcoins.”

This is a common line for risk-takers but well if you are not financially capable then this thoughts wont really be in your mind on the first place.To be expected for a billionaire to mind up into investments that would really give him fortune even more and he decided to risk up to buy all slots to get that no. of bitcoins.This is just really the same for those people who do bought bitcoin on its earlier years and upto now who do still holds it.
It just really a matter of risk-taking and own point of view.

[Lucius]

That 260$ million worth of BTC is just from Silk Road auction, but in addition to that he say that he bought even before that - so I belive he have much more then 260$ million worth of crypto.

I'm pretty certain that he has way more than that. He's balls deep into Bitcoin and these auctions were a fantastic opportunity for him to save plenty of time and money because of how difficult and expensive it is to buy large numbers of coins through an exchange. I can't look in his tax records, but he's definitely hiding a large percentge of his coins somewhere. Who doesn't?

For the first ever time we have a convenient way of storing wealth in a way that governments can't freeze or seize. On top of that, in the early days it was much easier to buy coins without sacrificing much of your privacy, so he has been lucky in that regard. The same goes up for Vitalik and all other large Ether holders, they are on purposely undervaluing themselves. 

In my case, only ~15% of my total holdings are public record (which I do pay tax over), the rest is hidden neatly. It's none of anyone's business where these funds are, and I'm definitely not paying one single penny in tax over that what isn't known. Taxing idle funds is theft in my book. It's my money.

He is invest smart few years ago, there is not doubt about that - but he admits he even buys BTC these days because he believes it makes no sense to hold fiat which lost value over the time. It is true as you say that we have completely new way of storing wealth and in most cases that wealth is 100% safe from governments financial agencies. But one thing which is always important when you hold BTC or any other crypto is the possibility that things can go down anytime. Today many people are just too distrustful toward BTC because of his volatility, but like Tim Draper I also belive more in BTC then in fiat for a long term.

[1Referee]

But one thing which is always important when you hold BTC or any other crypto is the possibility that things can go down anytime. Today many people are just too distrustful toward BTC because of his volatility, but like Tim Draper I also belive more in BTC then in fiat for a long term.

For new investors it definitely requires balls of steel in some situations, especially during corrections, but if you aren't doing anything with your funds, there is basically no need to stress out over Bitcoin's fluctuations.

If you have let's say $100,000 in your savings account, and you don't plan to touch any of these funds for at least a couple of years, why would it sting you that the value is fluctuating? The same applies to Bitcoin as well. Bitcoin's bias is always to go up in the long term, and as long as that's your target, you're all fine. Fiat's bias is to always go down in the long term, so I am much much more comfortable to hold through Bitcoin than anything else.

I remember how trolls back in 2014 during the correction made fun of those that bought the 2013 peak of $1100. Look where we are today. As long as you keep holding everything there is no need to stress. It only took ~4 years to book a 500% returns (I'm conveniently ignoring the near $20,000 peak). Where do you get these returns? Patience.

[Samarkand]

... Where do you get these returns? Patience.

But how many people really have this crucial skill in today´s world? Most people
are addicted to various kinds of things (from stuff like sugar to social media) and crave
instant gratification more than anything.

This is obviously far away from the right mindset of holding Bitcoins for several years
without obsessing about short-term price action. I really like it by the way that you didn´t use
the 20000 $ BTC price peak in your post, because you could have easily inflated the return of BTC
by cherry-picking the top of the 2017 bull run.

[rodskee]

Tim Drapper have an highest positive view in bitcoin of their experience
He got huge of profits from the very beginning since he buying bitcoin form the very cheaper price
He sitii strong believe bitcoin becomes stable again
But the price expecting want to become in the future by tim Drapper is so very expensive
 Hope reach this but i think not good for cryptocurrency iver price too expensive bitcoin in the market

[BitHodler]

This is obviously far away from the right mindset of holding Bitcoins for several years
without obsessing about short-term price action.

People force themselves to either trade or hodl while it's completely unnecessary because you can do both simultaneously. I did it too for a while but stopped trading because it doesn't work for me. I'm strictly a hodler right now.

If people feel the desperate need to bet against the short term market, they can allocate like 10% of their portfolio to speculative use. The other 90% will remain safely locked up offline. It's just a matter of common sense really.

The sad truth however is that most people will burn through that 10% with how they can't beat the market, but then again, you can better lose close to 10% than your entire balance (if you would bave allocated your entire balance to speculative use).

[aso118]

There are a lot of people who make empty predictions about Bitcoin, but Tim Draper is one guy whom I listen to. He put his money where his mouth is, and put down his millions to invest in Bitcoin. That confidence is what led to him sitting on a neat profit of $200+ million, in spite of the 70% correction in Bitcoin's price.

[Lucius]

But one thing which is always important when you hold BTC or any other crypto is the possibility that things can go down anytime. Today many people are just too distrustful toward BTC because of his volatility, but like Tim Draper I also belive more in BTC then in fiat for a long term.

For new investors it definitely requires balls of steel in some situations, especially during corrections, but if you aren't doing anything with your funds, there is basically no need to stress out over Bitcoin's fluctuations.

If you have let's say $100,000 in your savings account, and you don't plan to touch any of these funds for at least a couple of years, why would it sting you that the value is fluctuating? The same applies to Bitcoin as well. Bitcoin's bias is always to go up in the long term, and as long as that's your target, you're all fine. Fiat's bias is to always go down in the long term, so I am much much more comfortable to hold through Bitcoin than anything else.

I remember how trolls back in 2014 during the correction made fun of those that bought the 2013 peak of $1100. Look where we are today. As long as you keep holding everything there is no need to stress. It only took ~4 years to book a 500% returns (I'm conveniently ignoring the near $20,000 peak). Where do you get these returns? Patience.

Biggest problem for people who maybe want to invest in BTC is ignorance, they just do not see full potential of this technology and there is still a widespread opinion that BTC will one day collapse to 0. So most of people who have extra money invest in gold, silver, stocks or real estate same as big investors these days, and if they decide to enter with their money in crypto market perhaps ordinary people would change their minds also.

It is also important to people know when to buy/invest in BTC, not in time when price is going up in some crazy speed - but in times like it is right now. In few years we will probably read how Tim Draper is buy xxxx BTC when price was 6000$ and value of his coins is not in million $, but in billions.