The Silicon Valley Founder, Investor, and author Peter Thiel has made the news lately because of his investments in the pioneer cryptocurrency, Bitcoin. Many might know Peter Thiel from his recent book, Zero to One, others might remember him as one of the first investors in the social networking and media giant, Facebook. While, others can recall his investments in SpaceX, Palantir, and other notable companies. He was also a co-founder of the payments platform, Paypal. One could say, that Paypal was where he made his bones and reached billionaire status.
He’s made the news lately because he and his fund have bet heavily on the leading cryptocurrency, Bitcoin.
His Fund, Founders Fund, located in the sunny city of San Francisco has reportedly placed more than 18 million into Bitcoin.
How large of a position does he hold in the fund? At the moment it is not fully known, yet the fund started taking a position in virtual currency, in the middle of last year. The price of Bitcoin last year, around that time frame, was fluctuating around two thousand dollars to three thousand dollars.
Since then the price of Bitcoin has continued to grow at a startling rate until late December when there was a correction, but the cryptocurrency has rebounded and is now sitting at around $15,000.
Talk about the Gains
The fund is reporting significant gains for those who have invested with them; their profits are said to be more than a 100 million dollars.
The publication, Bloomberg, observes that bitcoin received interest from the Fund since it’s early years, around the years of 2012, when the digital asset, was simply trading for around two to five dollars.
It looks like Bitcoin rose and surpassed the price level of fifteen thousand dollars on the news of the Peter and the founders funds investment in the digital asset.
Peter Thiel and his views on Bitcoin
It is not necessarily surprising that the founder of Paypal was able to witness and participate in the growth of Bitcoin as he shares many of the values of the cryptocurrency world.
He commented in the past that many were underestimating Bitcoin and its function in society. He believes that it serves as a reserve form of money.
“Many are underestimating [it] especially because … it’s like a reserve form of money, it’s like gold, and it’s just a store of value. You don’t need to use it to make payments.”
“If bitcoin ends up being the cyber equivalent of gold it has a great potential left.”
Indeed, many are stating similar thoughts saying that Bitcoin is like digital gold because of its properties and different investments that many have to make to mine the coin. He also believes that it will look to have more potential as a store of value until it can fix it’s payments and transactions functions.
Bitcoin has come a long way from where it was in the past and continues to baffle many who doubted it and relegated as an outcast. 2018 will be a pivotal year for Bitcoin and the cryptocurrency market in general as many are expecting to see where the market heads and what it can bring to society.