Peter Thiel, the founder of PayPal Inc. believes that bitcoin will become less prominent in our daily investing and transacting. The billionaire entrepreneur and venture capitalist, expressed his belief that there is a 50% to 80% chance that bitcoin’s price will decline to a point at which the cryptocurrency, will be effectively useless. The overseer of Founders Fund brought in up to $20 million of bitcoin to its portfolio back in January, prompting a 9% rise in the price of BTC within just a day of the purchase.
Thiel thinks bitcoin is significantly more likely to fail than it is to continue to climb higher in price. Compared with a chance of up to 80% that the digital currency tanks in value, Thiel sees a 20% to 50% chance that the digital currency could go higher in price in the near future.
Although Thiel indicated his belief that it’s possible, if somewhat unlikely, that bitcoin will continue to climb in price, he’s betting against the leading digital currency. In fact, he said that he’s “not sure [he] would encourage people to run out right now and buy these cryptocurrencies” in a recent interview.
Though Thiel has long been an enthusiastic supporter of bitcoin. However, he believes that it’s likely other digital currencies like ethereum will surpass bitcoin in value. If that does take place, Thiel believes that bitcoin could become a long-term store of value rather than a go-to asset for daily transactions. In this way, the billionaire sees bitcoin a bit like an online version of gold or another precious metal.
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