Peter Thiel is a heavyweight in business, an exceptional financial specialist who made his profession in Silicon Valley. He brought PayPal online, and was an early financial specialist in Facebook and Airbnb before moving on to programming organization Palantir Technologies. He said to FOX Business that while he’s wary of most digital forms of money, Bitcoin is very underestimated.
“It’s like a reserve form of money. It’s like gold and it’s just a store of value. You don’t actually need to use it to make payment,” he told Maria Bartiromo during an interview at a conference in Riyadh, Saudi Arabia.
Bitcoin has taken off to a record increase this year of up to 500%, exchanging close to the $6,000 level, according to Coindesk. There has been a lot of deliberation by the world’s best financiers over how the virtual money really functions. Unlike new cash in an ordinary financial framework, Bitcoin isn’t sponsored by any legislature or national bank; for example, the Federal Reserve.
In September, Jamie Dimon, chairman and CEO of JPMorgan Chase (JPM) called Bitcoin a “fraud” and said it will eventually blow up. “The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart,” Dimon said while speaking at an investor conference. However, Thiel proposed a different take: “The argument it’s based on is the security of the math which tells you it can never be diluted by government… it can’t be hacked and it’s a form of money that’s secure in an absolute way.”
Made in 2009, Bitcoin is a primary semi-mysterious shared system fueled by its clients. It has a market top of over $70 billion, whereas gold is worth trillions, according to Thiel.
“If bitcoin ends up being the cyber equivalent of gold and it has a great potential left and it’s a very different kind of thing from what people in Silicon Valley focus on—companies, not algorithms not protocols, but this might be maybe one exception that is very underestimated,” Thiel said.
Even so, in Thiel’s opinion, like gold, it’s difficult to mine, making it more worthwhile.
“You can ask the same questions about gold. What is gold based on? Why is gold valuable?… It’s a tangible asset but it’s also hard to mine. So, if it was easy to mine then it wouldn’t be that valuable and we would just have way more gold. So, bitcoin is also, it’s mineable, like gold it’s hard to mine, it’s actually harder to mine than gold and so in that sense it’s more constrained,” he said.