The price of Bitcoin is currently not something to write home about these days, especially due to the uncertainty in the last few days that has seen it drop drastically in price. Based on this development, one could be forgiven for thinking that most notable investors would be taking a back seat and reconsidering their options. However, Peter Thiel, a notable investor who helped bring out the best in notable businesses like PayPal, LinkedIn, Facebook and Yelp seems to be taking the bull by the horns.
Firm but Exercising Caution
Peter Thiel surprisingly remains constant, though cautious in his stands, categorically noting:
I would be long on bitcoin.
Mr. Thiel expressed his sentiments during an informal question and answer session during the august Economic Club of New York. This is a notable forum that has previously attracted other notable personalities like Mikhail Gorbachev, King Abdulla III, Margaret Thatcher, Winston Churchill and John F. Kennedy.
Thiel Bares All in the Interview
During the interview, Maria Bartiromo was curious to know if Thiel’s view on Bitcoins had changed since the last time he talked about it enthusiastically. It is notable that the price of Bitcoin has previously been known to skyrocket, partly due to Thiel’s confidence in this digital asset. He had previously said that Bitcoin was largely misunderstood and saw it as big opportunity for any investor worth their salt. However, he seems to have slightly changed his view in respect to the recent happenings. He reckons:
I’m not exactly sure whether I’d encourage people to run out, right now, and buy these cryptocurrencies. The technology that people like to talk about is the blockchain technology. I am somewhat sceptical about how that translates into good investments.
Store of Value and Decentralized Currency
With these sentiments, he went ahead and made a comparison between the age old store of value and decentralized currency. He says that at this point he prefers to stay neutral-to-sceptical at the moment. On whether Bitcoin can become a new store of value, he is of the view that it may replace something like gold.
With regards to Bitcoin being a bubble, Thiel says that this may be the case, but so is money. He notes that looking critically at how money works, it can be referred to as a bubble that never pops.
What do you think about Peter Thiel’s view on the current state of Bitcoin? Is it justified to remain cautiously sceptical at this point or just the best time to invest even more? Let us know your views in the comments section below.