“I would be long bitcoin, and neutral to skeptical of just about everything else at this point with a few possible exceptions,”
PayPal co-founder and Facebook early investor and venture capitalist, Peter Thiel believes that eventually one cryptocurrency will emerge as the digital equivalent of gold — Thiel believes that crypto is bitcoin.
During a conversation Thursday at the Economic Club of New York, Thiel shared,
“I would be long bitcoin, and neutral to skeptical of just about everything else at this point with a few possible exceptions… There will be one online equivalent to gold, and the one you’d bet on would be the biggest.”
Thiel believes bitcoin will emerge as the gold standard (if it isn’t already) because of its age, because it was the first, and most importantly, because of its size. Bitcoin currently commands 42 percent of total market capitalization among cryptocurrencies.
“I’m not talking about a new payments system,” Thiel said, adding that bitcoin is too slow and clunky for that use case. “It’s like bars of gold in a vault that never move, and it’s a sort of hedge of sorts against the whole world going falling apart.”
While he adits that anything could happen, and a cryptocurrency such as ether or litecoin could emerge as the gold standard, he compares these altcoins to silver in traditional markets,
“Gold continues to be gold because it’s the main asset class… Maybe it could be replaced by silver but it doesn’t seem to be happening.”
Thiel also added that he scores a 50 to 80 percent chance that bitcoin ends up being worthless. However, he went on to say there’s a 20 to 50 percent chance that bitcoin ends up moving higher, effectively suggesting that anything could happen.
The complete livestream of the talk can be found below, courtesy of CNBC.