Amid the broader crypto market correction, you may be surprised to find that many well-known investors continue to double (and even triple) Bitcoin’s optimistic price forecast (Cryptography: BTC). For example, billionaire Silicon Valley Venture Capitalist (VC) Tim Draper believes that Bitcoin could reach $250,000 by the end of 2025.
But how likely is that? After all, Bitcoin is currently down more than 20% from its all-time high of around $109,000 in January, and has been struggling to regain its $100,000 price range since then.
The first thing to know is that Draper has been forecasting Bitcoin prices for the past decade. For example, in 2014, he famously predicted that Bitcoin would reach a price tag of $10,000 within three years. Bitcoin exceeded $10,000 in November 2017.
In 2018, he predicted that Bitcoin would reach a price of $250,000 by the end of 2022. That didn’t happen. Bitcoin reached $69,000 at the time in November 2021, and in 2022 the crypto market won a crater, bringing Bitcoin back to about $16,000.
In November 2022, with a very minimal investor sentiment about Bitcoin, Draper predicted that Bitcoin would soon reach one unattainable $250,000 price range. Certainly, Bitcoin has recovered significantly in price, but never reached $250,000. Even after the massive triple-digit percentage rally in 2023 and 2024, Bitcoin is still well below $100,000.
So, is it your third time? Is this finally a year when Bitcoin crosses beyond the much-anticipated $250,000 price?
To answer that question, it’s helpful to understand why drapers were bullish on Bitcoin for such a long time. Much of this has to do with his perspective as a Silicon Valley VC.
Ten years ago, Draper saw Bitcoin, mainly in technical terms. It was very simply a good form of money. It was digital, an algorithm, protected by strong cryptography, and benefited from the obvious network effects. Early adopters saw Bitcoin as the perfect currency and could not be deed by governments or central banks.
For much of its early history, Bitcoin was primarily considered a medium of exchange. In fact, the original Bitcoin white paper calls it a “peer-to-peer electronic cash system.” As a result, Draper envisioned an economic future where people use Bitcoin to pay for everyday transactions.
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Image source: Getty Images.
In 2025, Draper appears to have updated his views on Bitcoin in one important way. He now appears to consider Bitcoin as a valuable store in addition to being a medium of exchange. It’s something you can invest in and I believe it will retain its value over time. And it is much more valuable than any Fiat currency (such as the US dollar), which can lose its value over time due to factors such as inflation.
In fact, Draper recently suggested that Bitcoin will soon become the “world’s dominant currency”, eliminating the need for centralized Fiat currencies like the US dollar. When the US government is carrying a debt burden of $36 trillion, this type of debate is beginning to gain traction in the financial world.
As more people move from dollars to bitcoin, the price of bitcoin will go up, right? Imagine a new tsunami of demand as people ultimately gave up on the US dollar (and dollar-controlled assets) and pushed Bitcoin to incredibly high price levels over the next few years.
That may sound unlikely, but Draper believes people are thinking about ultimately using Bitcoin to buy food and clothes, and even paying rent or mortgages. But how many people actually do it? It’s been 15 years now, but Bitcoin is not yet a commonly accepted medium of exchange.
Much of this has to do with the way people think about Bitcoin. According to the latest Motley Fool Research, younger investors such as Gen Z and Millennials members do not consider Bitcoin as a medium of exchange. Instead, they view Bitcoin primarily as a long-term portfolio asset that can generate real wealth in the long term.
It may not be realistic, but a $250,000 price forecast can be useful in certain respects. Most importantly, it helps to generate debates about how and why Bitcoin has been able to gain mainstream acceptance. Instead of becoming a true medium of exchange (as we initially thought), Bitcoin has evolved into value and long-term portfolio assets.
Until Bitcoin truly becomes a universal medium of exchange accepted everywhere, its ultimate advantage may be capped. So if you’re thinking about investing in Bitcoin in 2025, just hold your expectations down.
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Dominic Basulto has a position in Bitcoin. Motley Fool has a position and recommends Bitcoin. Motley Fools have a disclosure policy.
The billionaire Silicon Valley investor could reach $250,000 by the end of 2025, according to the billionaire published by The Motley Fool.
