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PayPal Cofounder Peter Thiel Believes in Bitcoin to be Digital Gold

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Say what you may about Bitcoin,  it would not faze its loyal followers.

Paypal’s co-founder, Peter Thiel, essentially demonstrated that fact when he recently spoke in favor of the world’s oldest cryptocurrency despite the critical comments that it has recently received in terms of money laundering, energy consumption through its mining, and creating a speculative environment for investors.

Thiel, who is a known proponent of Bitcoin, showed his support towards it while speaking at the Economic Club of New York.

bitcoin is like gold, says thiel

He mentioned that he would support Bitcoin over almost every other asset in its class and believes that only Bitcoin has the potential to achieve the status of digital gold.

“I would be long bitcoin, and neutral to skeptical of just about everything else at this point with a few possible exceptions,” Thiel said. “There will be one online equivalent to gold, and the one you’d bet on would be the biggest.”

Apart from being the co-founder of Paypal, Thiel is known as a seasoned investor and was one of the early backers of Facebook.

Therefore, his comments held significance when he mentioned that Bitcoin has more potential to be an asset for investment rather than one which you can spend in day to day transactions. He compared Bitcoin to “bars of gold in a vault that never move,” and stated that like gold, it could be that one asset which remains steady in its value no matter what is going around it.

other cryptocurrencies might not have the same gold value as bitcoin

While mentioning to Bitcoin as gold, it was not a surprise when Thiel compared other cryptocurrencies to silver, stating that even if these cryptocurrencies come close to beating Bitcoin – there is a 20 to 50 percent chance that Bitcoin will end up moving upwards anyway.

“Gold continues to be gold because it’s the main asset class,” he said. “Maybe it could be replaced by silver but it doesn’t seem to be happening.”

Therefore, he said that he would not actively suggest people to invest in these other cryptocurrencies, otherwise known as altcoins.

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