Venture capitalist and co-founder of PayPal Peter Thiel explained why he makes a "long" bet on bitcoin, during his speech at the meeting of the Economic Club in New York this Thursday. This is reported by CNBC.
In his opinion, bitcoin has all chances to become an asset that investors can use to protect their capital, that is, the new gold of the era of digital technologies
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.
At the same time, Thiel noted that for everyday calculations, bitcoin is not yet suitable. First of all, the crypto currency should be considered as a hedging instrument, which does not carry the systemic risks of traditional financial instruments.
I'm not talking about a new payments system. 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.
He also noted that most of the qualities for which investors value gold are inherent in bitcoin. Moreover, most of the arguments against bitcoin will be fair for gold, he said.