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Tech investor Tim Draper predicts bitcoin will reach $250,000 by 2022

  • Venture capitalist Tim Draper confirmed Friday afternoon that he predicts bitcoin will reach $250,000 by 2022.
  • Bitcoin traded near $8,100 on Friday afternoon, up more than 18 percent for the week, according to Coinbase.
  • Fundstrat Global Research’s Tom Lee, the only major Wall Street strategist to issue bitcoin price targets, expects the cryptocurrency will reach $20,000 by the middle of the year and $25,000 by the end of 2018.

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Venture capitalist Tim Draper predicts bitcoin will multiply by 30 times within four years.

He made the forecast Thursday evening at his “Draper Block(chain) party” in California.

Draper tweeted early Friday morning New York time that he was predicting “bitcoin at $25k by 2022,” causing confusion among investors.

But he clarified in an afternoon tweet that $250,000 was the correct figure.

“It sounds crazy,” Brian Kelly, founder and CEO of BKCM, an investment firm focused in digital currencies, told CNBC on “Fast Money” Friday. “But think about it this way: that’s four years from now. That’s a 3,000 percent return from here. But over the last two years bitcoin has had a 4,000 percent return. It would be a continuation of that trend.”

Is bitcoin going to the mood? Fast Money's BK tells all

Is bitcoin going to the moon? Fast Money’s BK tells all  

Bitcoin traded near $8,100 on Friday afternoon, up more than 18 percent for the week, according to Coinbase. The cryptocurrency suddenly shot 17 percent higher Thursday morning. Many traders attributed the spike to investors covering their shorts, or buying back into the market after betting against bitcoin.

Fundstrat Global Research’s Tom Lee, the only major Wall Street strategist to issue bitcoin price targets, expects the cryptocurrency will reach $20,000 by the middle of the year and $25,000 by the end of 2018.

Draper is founding partner of Draper Associates and DFJ, an early investor in Skype and Chinese search giant Baidu. He bought nearly 30,000 bitcoins in a 2014 U.S. Marshals Service auction, all of which he told CNBC in December he was still holding. If that is still the case, Draper’s bitcoin investment is worth roughly $243 million at Friday’s prices.

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Article from GigaOm.

“Demandware who? Yeah, that is exactly what I thought. However, a tweet from financial and venture industry observer Dan Primack alerted me to the initial public offering of this Burlington, Mass.-based e-commerce platform provider that sells its services to folks like Barneys, Crocs and Tory Burch. The IPO has priced at $16 a share which values the company at $448 million. The company is raising $88 million.”

The company lost money on mere a $56 million in 2011 revenue, a sign that Wall Street is ready to punt on even marginal technology IPOs — so expect more of those to follow in coming months. Jim Cramer on CNBC’s Mad Money show said that one should not confuse a “trade with an investment.” In other words, buy at the time of IPO and then flip it. Buying later is a sucker’s bet. About Demandware, Cramer said, that if the stock priced below $15 it is good. “Anything more than that and there might not be enough juice to merit buying,” he said. Oops!”

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Article from SFGate.

“RootMusic, a San Francisco startup that helps artists such as Rihanna, Katy Perry and Arcade Fire connect with their Facebook fans, received additional venture funding Wednesday amid reports that the social-networking giant is close to offering its own music service.

RootMusic, which says it has about 32 million monthly active users for its BandPage platform on Facebook, announced a $16 million round of financing led by GCV Capital.

The platform adds a page for fans to hear and share songs, watch video and view concert dates. The company was started in March 2010, but already more than 250,000 bands around the world use BandPage, and usage has increased tenfold since January, said RootMusic CEO J Sider.

There have been various reports that Facebook is ready to release its own music service. On Tuesday, CNBC, Mashable and other outlets reported that Facebook plans to announce a music platform at its f8 developer conference in San Francisco on Sept. 22, with Spotify, MOG and Rdio as partners.

Facebook spokesman Larry Yu would not comment directly on those reports or what’s coming for f8, but said in a statement that “many of the most popular music services around the world are integrated with Facebook and we’re constantly talking to our partners about ways to improve these integrations.”

Sider said he views a potential Facebook music platform as complementary to BandPage.

“If something like this would happen, it would raise awareness that as a fan, (Facebook’s) where I should go first to find information.”

The Facebook music drumbeat might prove to be sour notes for former social-networking rival Myspace, which has been trying to reposition itself as a destination for music. Indeed, RootMusic’s slogan entices musicians to “Make the Move to BandPage on Facebook.”

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Here is realitycheck from CNBC.

“The US banking system will lose some 1,000 institutions over the next two years, said John Kanas, whose private equity firm bought BankUnited of Florida in May.

“We’ve already lost 81 this year,” Kanas told CNBC. “The numbers are climbing every day. Many of these institutions nobody’s ever heard of. They’re smaller companies.”

Failed banks tend to be smaller and private, which exacerbates the problem for small business borrowers, said Kanas, who became CEO of BankUnited when his firm bought the bank and is the former chairman and CEO of North Fork bank.

“Government money has propped up the very large institutions as a result of the stimulus package,” he said. “There’s really very little lifeline available for the small institutions that are suffering.”

Read the full article here.

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