Billionaire Peter Thiel is Long on Bitcoin

The histories of Paypal, Facebook, Yelp etc will not be complete without the mention of the man Peter Thiel. Those are a few tech companies that they Billionaire invested in at their very early stages. He is a widely sought after investment advisor and he was the keynote guest at The Economic Club  of New York’s luncheon held just over a week ago that was hosted by Maria Bartiromo.

At the event, Peter was asked about his thoughts on Bitcoin despite the recent bearishness of the market. His response during the informal question and answer session was “I will be long on Bitcoin.”

Notable personalities like John F. Kennedy, King Abdullah III, Mikhail Gorbachev, Herbert C. Hoover, Margaret Thatcher, Winston Churchill and many others have graced the event in times past. Of recent, The Economic Club of New York event has been hosted in the Grand Ballroom at The Plaza Hotel on 5th Avenue, New York City.

The event host Ms. Bartiromo tried to press Mr. Thiel for a response on whether or not his enthusiasm for Bitcoin remains as used to be the case previously especially in the light that even after years of existence, the cryptocurrency remains misunderstood by many.

Thiel in his response compared cryptocurrency with an age-old store of value;

“The one use case of cryptocurrency, of a store of value, may actually have quite a bit of way to go. I would be long on bitcoin, and neutral-to-skeptical of just about everything else at this point… with a few possible exceptions. The question about something like bitcoin is whether it can become a new store of value. The thing is it will replace is something like gold. I’m not talking about a new payment system. It’s too cumbersome to use for payments, for day-to-day transactions. The analogy it’s like bars of gold in a vault that never moves. It’s a hedge of sorts against the whole world falling apart or something. There’s about 200 billion dollars worth of bitcoin, there’s 8 trillion dollars worth of gold. 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: it’s this weird currency that’s not backed by any government (same thing is true for gold), it’s not clear what the intrinsic value of bitcoin is (same thing is true for gold).”