One of bitcoin's biggest backers, billionaire venture capitalist TimDraper, recently wagered about US$400,000 that the digital currencywill rebound from its recent plunge.

Draper, who co-founded investment firm Draper Fisher Jurvetson,said in an email that he bought 2,000 bitcoins for “around $200”last week. Draper, one of the biggest buyers in U.S. governmentauctions of bitcoin last year, is betting that the virtual currencywill bounce back after prices dropped 70 percent in the pastyear.

Bitcoin's price dipped by more than 30 percent in two days thismonth, to below $200. Skeptics were already questioning thecurrency's future amid increasing regulatory oversight and after bitcoin's slide had made it oneof the biggest money-losing investments of 2014, worse than oil orthe ruble. Bitcoin was valued at about $272 on Monday, comparedwith more than $1,100 in late 2013, according to CoinDesk BitcoinPrice Index.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.