Bitcoin’s Value Unlikely to See Dramatic Rise Further, Asserts Billionaire

Peter Thiel, the former CEO of PayPal, has shared his skepticism regarding the future price growth of Bitcoin beyond its current value.

The billionaire, who admits to owning “some” Bitcoin but regrets not acquiring more, questioned the emergence of new investors following the cryptocurrency’s “ETF edition.”

“I’m not convinced there’s substantial room for growth. With the ETF introduction already behind us, it’s unclear who the new market participants might be,” Thiel commented during a CNBC interview on June 28.

He anticipates that while the price of Bitcoin might see some increase, it will likely be accompanied by significant volatility.

In a reflection of his past investment choices, Thiel mentioned that he felt “underinvested” in Bitcoin during its surge towards the record high of $69,000 in October 2021, achieved roughly three weeks after his statement.

Despite these reservations, Thiel’s investment firm, Founders Fund, has had notable successes with Bitcoin, initiating its first investment in 2014 and securing a profit of $1.8 billion just before the market downturn in 2022. The fund also made a strategic acquisition of an additional $100 million worth of Bitcoin in 2023 when its price was below $30,000.

Bitcoin isn’t that cypherpunk

Thiel also commented on the evolving perception of Bitcoin from its original ideological standpoint. He expressed some disappointment that Bitcoin hasn’t fully lived up to its cypherpunk roots, a movement advocating widespread use of strong cryptography and privacy-enhancing technologies as a route to social and political change.

“What initially excited me was Bitcoin’s potential as a libertarian, anti-authority, crypto-anarchist tool,” Thiel recalled. However, he now observes that Bitcoin does not operate in the anarchic, untraceable manner he once envisioned.

He cited conversations with federal agents who prefer tracking Bitcoin over cash transactions: “If even the FBI finds it preferable to deal with Bitcoin rather than cash, it suggests that it doesn’t serve its original purpose as effectively as expected.”

Despite these discussions, Bitcoin remains a decentralized, permissionless blockchain, although not as secretive as some other privacy-focused cryptocurrencies like Monero.

Currently, Bitcoin’s market price stands at $60,450, experiencing a 1.8% decrease over the past 24 hours.

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