'It's going to be a volatile, bumpy ride' – Former PayPal CEO on Bitcoin

  • Peter Thiel's evolving view on Bitcoin highlights skepticism despite past investments
  • Michael Saylor has opposed Thiel's view and supports Bitcoin as a transformational economic solution

After showing signs of a brief recovery following the first 2024 presidential debate, Bitcoin [BTC] has retreated once again. In fact, at the time of writing, the cryptocurrency was trading at $60,889 on the charts after declining by 1% in 24 hours.

Peter Thiel's thoughts on bitcoin

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This slowdown has created a lot of skepticism within the community. Former PayPal CEO Peter Thiel also highlighted the same in a recent interview with CNBC. Highlighting the ongoing uncertainties about Bitcoin’s ability to achieve significant price growth, Thiel said,

“It could possibly still grow, but it would be a volatile, bumpy ride.”

Peter Thiel's comments reflect his evolving but mixed view on Bitcoin. This may be because initially, he admired Bitcoin for its cypherpunk, crypto-anarchist and libertarian ideals, seeing it as a decentralized alternative to traditional financial systems.

However, Thiel now believes that Bitcoin has not fully realized these ideals.

According to the executive, Bitcoin transactions are not anonymous or untraceable like some other cryptocurrencies such as Monero and law enforcement agencies can track and monitor Bitcoin transactions. He further added,

“When people at the FBI tell me they wish criminals would use bitcoin instead of $100 bills, that tells me maybe this isn’t working as well as it should.”

His comments reflect a more grounded approach to the subject, in contrast to his earlier optimism about Bitcoin’s revolutionary potential.

Thiel's differing viewpoint

For reference, in February 2024, Reuters reported that Thiel’s venture capital firm, Founders Fund, strategically invested $100 million in Bitcoin when BTC dropped below $30,000.

Founders Fund entered the Bitcoin market in 2014, a move that proved to be very profitable and generated $1.8 billion in revenue from its sale. This was before the market crash in 2022.

However, despite these gains, Thiel expressed a lot of regret during Bitcoin’s bull run in 2021. According to the executive, he did not invest enough capital on the digital asset.

When CNBC’s Andrew Ross Sorkin asked him about his current bitcoin holdings, Thiel reiterated a similar opinion, claiming,

“I still have some. I didn't buy as much as I should have.”

However, despite his regret at not being able to buy more Bitcoin, he remains pessimistic about the future of cryptocurrencies.

“I’m not sure it’s going to increase dramatically from here.”

Finally, it is also worth noting here that Thiel's past views match those of Michael Saylor's current ones. For his part, the MicroStrategy executive was in the news a few days ago when he claimed that Bitcoin is the “cure” for economic ills.

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