Venture capitalist Tim Draper recently said he was standing by his prediction that Bitcoin would hit US$250,000 by early 2023.
Draper was speaking at Virtual Blockchain Week, a virtual conference of industry leaders, futurists, and innovators on the topic of decentralized ledger technology. Of particular interest is that Tim Draper made remarks that he was not backing off his 2018 prediction that Bitcoin would hit a quarter-million dollars by the end of 2022 or in early 2023. In fact, he firmly stood by his BTC price prediction.
Still Optimistic Over Bitcoin Price
As Bitcoin inches closer to its next halving, where mining rewards will drop to 6.25 tokens per block, Tim Draper stood tall today in proclaiming his optimistic outlook over the future value of Bitcoin. Bringing up his BTC prediction of $250,000, he said, “That’s my prediction. Sticking with it. I’m very confident that that is going to happen. That’s happening. It’s kind of funny.”
There are several reasons for Draper’s view. First, he believes that there will be a huge surge in businesses accepting Bitcoin over the next couple of years. He says businesses will look at the lower costs associated with BTC transactions than those of credit cards and make the switch.
This has happened before when American Express was squeezed out of everyday use by retailers in favor of MasterCard and Visa. (The percentage that American Express charged businesses could reach as high as twice the cost of Visa/MasterCard.)
Tim Draper states, “All of the sudden, the retailers say, ‘Oh, you mean I don’t have to pay 2.5-4 percent to the banks every time somebody swipes a credit card?’”
Draper is putting his money where his mouth is in this regard. He has invested $1.25 million in OpenNode, a financial entity that is building a payment portal using the Lightning Network.
The other reason why Draper believes BTC will still hit $250,000 is that more people are going to invest in cryptocurrency due to the recent economic stimulus package for the COVID-19 outbreak. He believes that the stimulus will debase the dollar, causing people to make the move into Bitcoin and other cryptocurrencies.
Not Eating His Own Dick
Draper offered up a penalty if his Bitcoin price prediction failed to come true. He said he would eat a “raw egg” if Bitcoin did not hit $250K by early 2023. This is a humorous take on John McAfee, who famously said he would eat his own dick if Bitcoin did not hit a million dollars by the end of 2020.
McAfee backed off his dick-eating pledge earlier this year. On January 5, he tweeted, “Eat my dick in 12 months? A ruse to onboard new users. It worked. Bitcoin was first. It’s an ancient technology. All know it. Newer blockchains have privacy, smart contracts, distributed apps and more. Bitcoin is our future. Was the Model T the future of the automobile?”
While the stakes are far lower for Draper, Bitcoin enthusiasts are hoping his price prediction will come true.
Images courtesy of Wikimedia Commons/JD Lasica and Pixabay.
Facebook-backed Libra welcomes Blockchain Capital as new member
The Facebook-initiated Libra blockchain project continues to grow as its governing body has added a new major industry partner.
Blockchain Capital, one of the largest venture capital firms in the blockchain industry, has joined the Libra Association, according to an official Sept. 18 announcement.
Alongside the other 26 association participants, Blockchain Capital will now be working to create a “more equitable payment system” with Libra.
Bart Stephens, co-founder and managing partner at Blockchain Capital, said, “Leveraging blockchain technology to improve financial access and promote innovation has been at the core of Blockchain Capital’s portfolio strategy.”
The Libra Association was formed in June 2018 after Facebook originally released a white paper for its stablecoin project, Libra. At the release, the association had a number of major global companies as founding members including Mastercard, PayPal, Visa, Stripe, eBay, Coinbase, Andreessen Horowitz and Uber. However, many initial members have left the association amid global regulatory pressure.
Libra has seen some revitalization this year, with the Libra Association adding more members like Checkout.com and Shopify. However, with 30 members so far, Libra’s governing body is still far from its planned 100 members.
The Switzerland-based association has been also appointing top financial services experts as executives in 2020. On Sept. 17, the Libra Association appointed HSBC veteran James Emmett as managing director of its subsidiary firm, Libra Networks LLC. Previously, the association announced former HSBC chief legal officer Stuart Levey as its first CEO.
Local Authorities Summon Bithumb Chairman Of The Board Over Alleged Fraud
Bithumb’s situation worsens as South Korean authorities have reportedly summoned company Chairman Lee Junh-hoon for alleged fraud regarding the sale of BXA tokens. This comes days after local police raided the exchange for the third time in less than a month.
Three Police Raids For Bithumb In September
September turns out to be a rather unpleasant month for the popular South Korea-based cryptocurrency exchange. As CryptoPotato reported earlier this month, the Intelligent Crime Investigation Unit of the Seoul Police raided the company’s headquarters under allegations for fraud.
Authorities alleged that the exchange sold its native BXA tokens to investors for over $25 million. Bithumb planned to list the token on its platform but reportedly failed to, resulting in a massive loss for investors.
Just five days after the first raid, the police conducted another one on September 7th. A police official purportedly said that authorities aim to secure additional evidence related to already existing allegations against Bithumb Korea and Bithumb Holdings Chairman of the Board – Lee Jung-hoon.
The plot thickened earlier this week when the Seoul Metropolitan Police Agency (SMPA) raided the exchange’s headquarters once again. This time, however, authorities took it a step further. They seized dozens of shares in Bithumb Holdings belonging to Bithumb Korea Director Kim Byung-Gun after receiving approval from the Seoul Central District Court.
Bithumb Chairman Summoned By Local Authorities
Earlier today, the state-run agency Yonhap reported that the SMPA had “summoned” Lee Junh-hoon. Apart from being the Chairman of the Board of Directors of Bithumb Holdings and Bithumb Korea, he is also the beneficial owner of Bithumb.
The report highlighted that BXA coin investors had sued both Lee Junh-hoon and Kim Byong-Gun for the financial losses suffered from the token sale. The authorities have also accused Junh-hoon of violating the Act on Aggravated Punishment for Specific Economic Crimes by fleeing South Korea.
Interestingly, while the investigation against Junh-hoon is ongoing, authorities haven’t conducted one against BK Group Chairman Kim Byung-Gun, despite both being accused of the alleged fraud.
Beware: Fake Uniswap (UNI) Token Giveaways Already Roaming the Internet
Cryptocurrency fake giveaway scams continue to emerge frequently, and the latest example involves the popular DEX protocol Uniswap. Just a day following the UNI token release, scammers began promoting fake UNI giveaways by impersonating Uniswap’s creator – Hayden Adams.
Fake UNI Giveaways On YouTube
As CryptoPotato reported yesterday, the popular decentralized token swap platform launched its long-anticipated native token called UNI. The announcement was accompanied by news that Uniswap will airdrop 15% of UNI’s total supply to users who had used it before September 1st. Naturally, this free token rush raised the community’s attention rather rapidly.
However, it appears that scammers were also keeping a close eye. It didn’t take long, and only a day after the UNI launch, unknown fraudsters initiated a fake UNI giveaway on the most widely-used video-sharing platform – YouTube.
In this case, the scammers created a fake Uniswap YouTube channel that supposedly has over 400,000 subscribers. They also launched a live video displaying 40,000 live viewers with the protocol’s creator – Hayden Adams.
Lastly, the classic scam is completed by offering to double all UNI tokens sent to a specific address. Meaning, that if users send 250 UNI to their address, the fraudsters promise to send back 500 UNI tokens.
Although it sounds like easy money, a more in-depth look reveals several issues and points out that it’s a classic scam. The YouTube channel has only two videos – both carrying the same fraudulent live stream, but the Google-owned platform has taken down the first one.
Additionally, the videos contain the same repeating old interview with Adams, where he says nothing about giving free UNI tokens. Last but not least, victims that fall for this scam and actually send coins to the provided addresses will not receive anything in return.
Growing Problem But Where’s The Solution?
Similar fake giveaways are a growing threat for the cryptocurrency field, its image, and, most importantly – users. Although they sound too good to be true, scammers continue doing them on several social media platforms, but mostly on YouTube.
This is where the main problem lies. The Google-owned platform has been previously criticized and even sued for not putting enough effort into fighting the scams. However, YouTube is frequently warning and banning legit cryptocurrency content creators as its logarithm fails to notice the differences.
Another social media giant Twitter also went through something similar recently. Attackers gained control over 130 accounts of famous individuals and companies and initiated a fake Bitcoin giveaway. Although Twitter stayed up front with the users and updated its security protocols, the platform was exploited once again a month later.
In any case, while social media platforms struggle to find the most appropriate solution, users need to be more cautious and vigilant. A general rule of thumb suggests that if something sounds too good to be true, it usually is. Also, there’s no such thing as free lunch.
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