Venture capitalist and cryptocurrency investor Tim Draper spent approximately $400,000 on bitcoin last week, betting that the digital currency regains its value soon, Bloomberg reports.
Tim Draper has made considerable investments in the Bitcoin economy over the last year. He won approximately 32,000 BTC from the two US Marshals’ auctions of the Silk Road forfeiture in July and December 2014. However, with the price collapse in the beginning of 2015, bitcoin turned out to be a bad investment comparable to that in rubles or oil as Bloomberg and The Wall Street Journal claimed in their end-of-year analyses.
At the time of the first auction the bitcoin price was about $600. The price of bitcoin dropped dramatically in the first half of January, going below $200 last week – less than 30% of its price at the end of 2013. Earlier in January, Draper suggested it was a good time for buying bitcoins for rubles in his twitter.
Buying bitcoins for a price of “around $200”, Draper hopes that the currency will bounce back to a higher price, Bloomberg says referring to an email they received from Draper. Despite the understandably unfavourable prognoses, he apparently remains optimistic about the future of the digital money.