Peter Thiel has an impressive track record, with his co-founding of PayPal and early backing of Facebook standing as proof that he knows how to pick a winner. His latest move has certainly raised eyebrows, as through Founders Fund he has apparently bought up a large amount of Bitcoin. While the exact figures have yet to be released, the venture capital firm is supposed to have snapped up between $15 million to $20 million of Bitcoin. Investors were recently told that due to the recent Bitcoin boom that these holdings were now worth hundreds of millions. What isn’t clear is whether or not Founders Fund has moved to sell, but the story certainly creates quite the talking point nonetheless.
While plenty of investors have stood by Bitcoin, Peter Thiel is an investor of an entirely different persuasion. His track record is truly second to none, with the report of his large-scale investment actually giving Bitcoin a boost. Voicing his opinion on Bitcoin at a conference back in October, Thiel said that investment circles are “underestimating” Bitcoin, making direct comparisons between the cryptocurrency and the gold market. He also said, “If bitcoin ends up being the cyber-equivalent of gold it has a great potential left”. As said, Thiel isn’t the first major name to throw his weight behind the cryptocurrency. Tim Draper – the leading venture capitalist – bought nearly 30,000 bitcoins back in 2014 and has recently stated that he’s still holding onto them.
If bitcoin ends up being the cyber-equivalent of gold it has a great potential left. – Peter Thiel
What is worth noting is that Thiel’s Bitcoin investment holds true to his initial vision for PayPal. When he co-founded the popular payment platform, he supposedly did not see it as an eBay or online retailer payment mechanism, nor did he see it being a social payment platform. During a Reddit AMA he talked about how he failed to deliver on his initial vision for PayPal, which was for it to become a “new world currency”. Stepping into the world of cryptocurrency over a decade later, it appears that Bitcoin matches his original ambitions.
The prominent billionaire has his hand in a number of firms that are considered cutting-edge; including Elon Musk’s prominent project SpaceX. For that reason, his Bitcoin investment appears to be in esteemed company. Overall, Thiel’s backing is good news for Bitcoin, as it’s great to see a name as lofty as this not only take Bitcoin seriously, but also pump money into the cryptocurrency. Given time, this should only work to further Bitcoin’s cause and growing case for mainstream acceptance.