Venture capitalist and one of Facebook’s first investors Peter Thiel makes a choice in favor of bitcoin, according to its size and potential to become a “safe haven” such as gold.
Taking part in the meeting of the members of the Economic club in new York on March 15, Thiel said:
I’ll bet on bitcoin. With regard to almost all of the other cryptocurrencies at this stage, the few exceptions I neutral or skeptical towards them. There is one network equivalent of gold, and the currency that you will put, it is the biggest.
PayPal co-founder shares the view that bitcoin will become more of a store of value than the popular currency for everyday transactions.
“I’m not talking about the new payment system, — said Thiel, adding that bitcoin is too “big” for this use case. — Bitcoin is like the pile of gold bars in the vault that never move, and it’s a hedge against the world in case he starts to fall apart”.
According to Thiel, the probability that bitcoin will ultimately depreciate, is equal to 50-80% and the chance of growth is 20-50%:
The probability of the realization of its potential is high enough, but I am not going to predict when it might happen.
According to Thiel, it is likely that other digital currencies such as Ethereum will be able to surpass bitcoin. Thiel believes that competitors can be the best characteristics, but bitcoin is attractive due to its scale.
According to Coinmarketcap, March 15, the share of bitcoin had more than 42% of the total market capitalization of all cryptocurrencies, whereas Ethereum is about 19%. Thiel said
Gold continues to be gold as it is a major asset class. Maybe it can replace silver, but this is apparently not happening.
In early January, the Wall Street Journal, citing insiders, said that led by Thiel’s Founders Fund has acquired bitcoins in the amount of $15 million to $20 million According to CoinDesk, after this information was made public, the bitcoin during the day increased by 9%. Since then, the cryptocurrency has lost in value more than 40% and 15 March were traded at around $8245.
The optimism of Thiel does not apply to digital assets in General. He said: “I’m not sure I’m ready to inspire people to immediately purchase all these cryptocurrencies”.
Famous venture capitalist — a longtime supporter of bitcoin. In October last year, Thiel said at a conference that people underestimate this digital currency.