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Bitcoin price remains volatile with the swing in any direction possible but Draper is confident the overall trend will be bullish in the foreseeable future.
Two billionaires with a vested interest in cryptocurrency and decentralized finance have expressed optimism about bullish trends continuing in the future. Tim Draper, a venture capitalist with a substantial but undisclosed amount of Bitcoin, has chosen to stay by his predictions that BTC will reach a price of $250,000 at the end of 2022. He maintains this stand despite the volatility of the market in recent months and the contention about the coin’s huge energy usage.
Draper bases his predictions on three facts. Primarily, he is encouraged because more retailers will embrace Opennode as a means of payment in the coming years. Currently, only a few companies like Home Depot, Microsoft, PayPal and Starbucks (to mention a few) accept BTC as a means of payment.
Also, Draper considers the limited number of BTCs (only twenty-one million) that can be mined as a plus. He also believes the fact that there are engineers constantly working to improve the Bitcoin platform making it even more likely that the platform will remain sustainable, unlike some others.
BTC reached a peak price of $64,829 in April before the price crashed to around $30,000. However, on Monday, it rose by over 7%. However, Bitcoin price remains volatile with the swing in any direction possible but Draper is confident the overall trend will be bullish in the foreseeable future.
He isn’t alone in his convictions. Another billionaire investor Mark Cuban is also bullish about the future of decentralized finance (DeFi) and decentralized autonomous organizations (DAOs).
Cuban believes that DeFis and DAOs pose enough threat to traditional banks and financial institutions. In his blog post published on Sunday, he said, ”banks should be sacred.”
By incorporating cryptocurrency into the traditional financial system, DeFi applications are helping us rethink the way we carry out financial transactions. DAOs help to govern and oversee DeFi applications and other projects.
Cuban believes the decentralized protocol behind the system makes DeFi and DAOs a tremendous competition to banks. In addition, DeFi exchanges do not require a lot of capital when scaling operations. This is particularly true because liquidity providers (LP) can step in to fill that gap.
Of course, there are risks and technicalities to DeFi and DAO that need to be addressed and Cuban acknowledges them but retains his confidence that “this approach is the future of personal banking.”
Despite these obvious risks, DeFi has been gaining ground recently with over $60 billion currently locked in DeFi protocols, according to DeFi Pulse.