Bitcoin’s early losses, custody failures, and $4 purchase price shaped Tim Draper’s enduring bet that the real power of cryptocurrencies lies in financial inclusion. That belief drove long-term holding through new price calls and volatility.
Tim Draper shares the personal history behind his groundbreaking Bitcoin investment
Venture capitalist Tim Draper shared reflections on social media platform
he said:
“I initially bought Bitcoin at $4 per coin. Not because I understood the technology (I didn’t). Not because I could see the future (I couldn’t), but because someone explained how digital currencies could change the world to people who don’t have traditional banking access.”
Mr. Draper then explained the structure of the first major assignment, writing: “When Peter Vincennes (CoinLab founder) said he would mine for me, I had committed $250,000 to Coinlab and another $250,000 to buy the coins at $4 per coin.” Draper also explained his early critical losses. “Peter tried to store his Bitcoin on Mt. Gox, but the money ‘disappeared,'” he said, going on to explain that the experience did not end his involvement with Bitcoin, but reinforced the importance of resilience and long-term thinking at a time when clarity around exchanges, custodial practices, and regulations was still emerging.
read more: Tim Draper bets big again, calls $250,000 in Bitcoin in 6 months
After detailing Mt.Gox’s losses, Draper outlined its re-entry into the market through a government sale. “When the US Marshals Service auctioned off 30,000 Bitcoins, I jumped on board again,” he wrote. Elaborating on the strategy behind the bid, he said:
“I believed Bitcoin would really change the game, so I bid $632 per coin against the market price of $618. I won all nine lots. The price quickly dropped to $180, but I held on.”
This follows another post Draper shared on X on Jan. 19 after his interview with the Divot team, in which he revisited the same investment history, noting that Bitcoin reached $10,000 three years after his 2014 prediction, and then advanced a renewed call for Bitcoin to reach $250,000 within six months, with further upside potential coupled with network growth and declining confidence in the dollar.
FAQ ⏰
- When did Tim Draper buy his first Bitcoin?
He said he bought Bitcoin at $4 per coin during the initial introductory phase. - What happened to Draper’s early Bitcoin holdings?
Draper said his bitcoins “disappeared” after being stored at Mt.Gox. - Why did Tim Draper buy Bitcoin even though he didn’t understand the technology?
He said the idea of financial inclusion for the unbanked was a driving force behind his decision. - What is Tim Draper’s latest Bitcoin price prediction?
Draper said Bitcoin could reach $250,000 within six months and continue to rise.
