Peter Thiel says Bitcoin is the next gold
PayPal’s co-founder, Peter Thiel has spoken out in favor of Bitcoin to describe it as the next gold.
The tech billionaire, who’s also an early Facebook investor, says there’s an important distinction between Bitcoin and the dot.com bubble.
In the late 90s, the dot.com bubble left many investors high and dry, and crypto-skeptics often liken the frenzy over cryptocurrency to that crash.
Speaking to FOX Business’ Maria Bartiromo, Thiel said the value of Bitcoin, in the same way as traditional money, is determined by society.
He also explained that both can be stable while displaying bubble-like features, saying:
“[Bitcoin] has all of these sort of ’99-2000 bubble like aspects, but one thing that is very different from ’99-2000 is there are almost no Wall Street analysts pushing this, and so it is so out of favor.
“[Bitcoin] may well be a bubble and most bubbles are unstable…
“There is this sort of bubble like aspect to money, but it’s one that can be quite stable.
“So even if bitcoin is bubble-like, that doesn’t necessarily rebut it in this core use case for store value.”
Thiel said the cryptocurrency is too “cumbersome” to be used for everyday transactions but does have the potential to replace gold.
“There’s about $200 billion worth of bitcoin [and] there’s $8 trillion worth of gold and many of the things that make gold attractive would also apply to bitcoin. And many of the objections people have to bitcoin would also be objections to gold,” he said.
Bitcoin and gold are both similar in that they aren’t backed by any government and don’t have intrinsic value.
Leader of the pack
The billionaire venture capitalist said he believes that Bitcoin will be the cryptocurrency that continues to lead the pack over other popular cryptocurrencies such as Ethereum, saying: