NOVOGRATZ AND DRAPER: Bitcoin Bulls Double Down With Market Moving Predictions

Michael Novogratz and Tim Draper have become the faces most associated with serious and institutional money connected to Bitcoin. Both men have long and distinguished careers in traditional finance and have pivoted in the past three years to Bitcoin and cryptocurrencies with a religious fervor fueled by personal conviction.

That conviction is rooted in a belief system that Bitcoin, in particular, will continue to emerge as an ecosystem and architecture that can revolutionize finance – and very possibly, several other industries.

Those convictions were on display this past week as both men made bold predictions connected to the current price of Bitcoin (Novogratz) and the long-term value of the crypt markets (Draper).

Novogratz ‘called a bottom’ in current Bitcoin pricing, and by extension, the overall crypto markets when he tweeted the following:

On the day of Novogratz’ tweet, Bitcoin’s value began at $6337.46 before rising to $6589.32. This week’s trading will likely prove or disprove Novogratz and Bloomberg’s theories.

Novogratz isn’t the only confident bull. Tim Draper, speaking at a DealStreetAsia summit in Singapore last week predicted the total market capitalization for cryptocurrencies will reach a whopping $80 trillion by 2023. As of today, Bitcoin is still dominating the cryptocurrency markets, with 55% of the total market capitalization invested in Bitcoin alone.

Speaking to a source who knows both men and who shares their Bitcoin bullish bent there isn’t a surprise that each of them spoke up last week given the developments set to hit the market by year’s end.

“Both Tim and Michael are smart guys and are acutely aware of developments within the ecosystem that most investors and traders just don’t see yet. Whether it is news that has yet to hit the tape or their own initiatives that they are developing, these guys are as connected as you are going to find. Sure, Tim’s prediction is a bit over the top, but he’s talking about 15 – 25 years down the road when we could potentially be looking at a world that is dominated by tokenization. Global financial institutions not only having fully integrated cryptocurrencies but have actually issued tokens of their own. That is the world Tim is talking about – to say nothing of what they believe Bakkt, ETF’s, and a slew of other structured products and architecture will do to the markets.”

Draper compares the potential of cryptocurrencies to the internet boom back in the 1990s. The internet, in return, was compared to the telegraph, the railroad, and the automobile industries at the time. No one thought that industries as diverse as agriculture, for example, would embrace the internet.

Similarly, cryptocurrencies will likely revolutionize some unexpected trillion dollar markets, such as finance, healthcare, or governance. And the likes of agriculture will likely follow. Thus, Draper’s thesis finds its footing.

Draper pressed his narrative at the DealStreetAsia PE-VC Summit in Singapore last Wednesday, when he announced his prediction. As is typical when Tim makes these sort of predictions, it got immediate press coverage and moved through the markets quickly.

And as it relates to the growth of the internet over a 15 year period, consider this: According to the data shared by Internet World Stats, the world internet usage increased by more than 100 times within the same timeframe of 15 years, between 1995 and 2010. While you can’t exactly adapt this number to make an economic prediction if cryptocurrency adoption should grow by 100 times within 15 years — considering that approximately 4 million use Bitcoin at present — one can only imagine what the cryptocurrency market would look like.

Draper and Novogratz are on to something – in the short term and long term.