Billionaire Peter Thiel: "Bitcoin's Harder To Mine Than Gold... Has Great Potential"

Tyler Durden's picture

Outspoken billionaire investor Peter Thiel told attendees at the Future Investment Initiative in Riyadh, Saudi Arabia, that people are "underestimating" bitcoin and that it has "great potential left," comparing the cryptocurrency bitcoin to gold.

In his remarks, Thiel said that while he is "skeptical of most [cryptocurrencies]," he believes bitcoin has a promising future depending on the trajectory it takes...

"I'm skeptical of most of them (cryptocurrencies), I do think people who criticize are a little bit... underestimating bitcoin especially because... it's like a reserve form of money, it's like gold, and it's just a store of value. You don't need to use it to make payments," Thiel said.

The PayPal founder and venture capitalist compared some of bitcoin's features to gold.

“If bitcoin ends up being the cyber equivalent of gold and it has a great potential left and it’s a very different kind of thing from what people in Silicon Valley focus on - companies, not algorithms not protocols, but this might be maybe one exception that is very underestimated,” the Silicon Valley elite said.

Even so, in Thiel’s opinion, like gold, it’s difficult to mine, making it more worthwhile...

“You can ask the same questions about gold. What is gold based on? Why is gold valuable?...

 

It’s a tangible asset but it’s also hard to mine. So if it was easy to mine then it wouldn’t be that valuable and we would just have way more gold.

 

So bitcoin is also, it’s mineable, like gold it’s hard to mine, it’s actually harder to mine than gold and so in that sense it’s more constrained,” he said.

In September, JPMorgan CEO Jamie Dimon famously called bitcoin a “fraud” and said it will eventually blow up.

"The currency isn't going to work. You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart," Dimon said while speaking at an investor conference.

However, Thiel proposed a different take:

“The argument it’s based on is the security of the math which tells you it can never be diluted by government… it can’t be hacked and it’s a form of money that’s… secure in an absolute way.”

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CHX13's picture

Bitcoin - fad du jour - rare electrons that are hard to get and "secure in an absolute way"...

I_rikey_lice's picture

People die mining for gold every day and this clown says that bitcoin is harder to mine than gold.

Stick him 2 miles deep into the earth in a real gold mine and see if he feels the same way. Fucking clown.

Laowei Gweilo's picture

i really don't think 'human pain and suffering' is part of how the vampire defines 'hard' though lol

 

he means, per $ of expense to return $ of value...

not sure how he gets it but he's probably skewing it to the huge economies of scale (and scope) of, say, ABX, NEM, GG in the 3rd world versus an amateur BT miner in the US. so, yeah, then per $ of expense ABX is probably getting more gold in $ per $ expense, than johhnystayathome-miner is in BT in $ per $ in residential hydro expensive. in that sense, yeah, maybe bitcoin is harder to mine -_-

but i'd wager the margins on the warehouses of BT miners in Xinjiang China are getting better margins than ABX or GG in their Canadian mines =p so wtf knows. probably would have been a good thing to elaborate on o.0

Common_Law's picture

Well I guess that's just as good as an endorsement from the CIA. Palintar and such 

beemasters's picture

"Bitcoin's Harder To Mine Than Gold... Has Great Potential"

He must be a hopeless computer illiterate to say that.

Agstacker's picture

lol like getting a 'rare' item in a computer game.

Laowei Gweilo's picture

LOOT BOXES HAVE COME TO CURRENCIES

bwh1214's picture

Keep ignoring it and you will remain poor, dreaming of when your losing bets will make you rich.  Stubbornness and sour grapes plain and simple.  Two rules.  Don't listen to those who are threatened by bitcoin or have a conflict of interest.  Don't listen to those who have not gotten rich off of tech, creating or investing, seems obvious these would be the experts after all.  After applying these obvious rules, take a look again at all the prognosticators opinions.  

Endgame Napoleon's picture

Jamie should note: Peter Thiel is smart, very smart. He makes big bets that turn out to be the correct choice, time after time.

But no one who lacks money will get rich on Bitcoin. It is an impermeable storage facility for current wealth. Maybe, ordinary people could treat Bitcoin as a savings account, especially since you get almost zero interest on savings accounts, assuming these ordinary people are not single and childless with zero extra, unearned, womb-productivity income coming in from government via $6,269 child tax credits and welfare that covers rent and food. For most people who live on earned-only income, rent absorbs half or more of monthly pay.

There will be no Bitcoin savings account in those cases, and single moms and illegal aliens often spend their $6,269 refundable child tax credits at the beach, rather than saving any of it.

Beyond rarity and the extraction difficulty, gold may have a few other qualities that add value, like the way jewelers say it is more durable than silver, but many people who can afford gold still choose silver for aesthetic reasons. The color of the metal is important to many consumers. If you think this issue matters, you could invest in platinum.

In this day and age, it is kind of passée to put so much investment control in the jewlers’ hands. A bejeweled body is not the signifier of wealth that it once was.

You can verify wealth from 500 years ago by the quality of clothing and jewelry in portrait paintings. Not so much in the Era of the Hoodie, although I have seen people commission formal oil paintings of their children in the super-casual clothing they wear in everyday life, saying they want to remember them as they were, which is interesting. Still, 500 years from now, that will probably not be a trend of much use to historians in identifying where the wealth was.

I am all for art and the glory of decorative objects, but for some reason, it seems fitting for money to be measured by a hardcore, mathematical thing.

Son of Captain Nemo's picture

"Jamie should note: Peter Thiel is smart, very smart. He makes big bets that turn out to be the correct choice, time after time."

So is George Soros! But if you both have access to a printing press with a military behind it that enforces purchases YOU can certainly get rich off of it as well... Till you CAN"T!!!

Which is why the "chicken or the egg" of Buttcoin is the death knell of the Western Central Banking system hence why it's been manufactured to divert attention from the real money that is moving East every day with the $$$ coming home to "roost"!

Son of Captain Nemo's picture

P.S.

This is why if you are a "Buttcoin "aficionado you would be patient and wait for international standards and rules to be formulated that would make crypto-currencies "medium of exchange" value linked up to a "store of value" that only the Russians and Chinese CAN GIVE IT!!!

Captain Nemo de Erehwon's picture

Hard work son ...hehehe ...that will get you everything fer shure

Ramesees's picture

>But no one who lacks money will get rich on Bitcoin.

Breh, you have a chance, right now, to put your money in something that could one day grow to be the size of the market cap of gold. Think of it as a spec growth investment. Don't invest more than you can afford to lose, but even a small investment today may make you rich 20 years from now.  

Mustafa Kemal's picture

">But no one who lacks money will get rich on Bitcoin."

Indeed, we will see. This April 2017 I loaded up .5 BTC and 10ETH onto two Ledger Nano s each and gave them to my two nieces for graduation. At that time they were worth about $1K.

Now they are worth over $6K. Both are 18 years old. Lets see what their little Nanos are worth in 40 years.


Raffie's picture

Crypto haters gonna hate.

Cryptos + PM = great future. 

Praeda2's picture

You aren't on infowars dummy. The poor faggot here is YOU.

Who here is 'threatened' by Bitcoin?

Next you go FULL retard with;

Listen to people who've gotten rich off of tech... You mean gimps whose IPO'd a company that never made a profit then cashed in before it went broke? Yeah, some real genius in CA. Bunch of Madoff Juniors more like it.

There's a reason, you simple fuck, that losers like you attack gold everyday. You don't say anything about real estate or art or wine or automobiles or anything else someone could invest their money in. You don't even talk shit about companies trading at 100x their earnings or companies with no earnings. You're just a lotto ticking buying lemming. You made some bucks? Great, no one cares. Go fuck Jamie Dimon's kike daughter and give her your AIDS.

 

Justin Case's picture

"has a promising future depending on the trajectory"
"You don't need to use it to make payments," hoard the currency?
“If bitcoin ends up being"
"but this might be maybe"
"Why is gold valuable?...It’s a tangible asset but it’s"

I can't afford the risk of maybe, might, depending, if, could. Those that can, good luck.

Hoarding

The trouble is that this sort of bitcoin hoarding leaves many questioning the future of the currency. If economic incentives encourage people to hoard their bitcoins rather than spend them, the thinking goes, the currency will never fulfill the extravagant promises laid down by the biggest believers, who say it will streamline monetary transactions, free the world from the financial manipulation of big government and big banks, breakdown the financial walls between nations, and, well, remake the worldwide economy.

The concerns are justified. Even some of Bitcoin's most ardent supporters – like Fred Friis, one of the Tokyo Bitcoiners who regularly spends his digital currency at the Pink Cow – say that the consistent increase in the currency's value is a "legitimate issue."

nmewn's picture

lol...Peter Thiel has always been like a horny poodle, now he's found a BitLeg to hump ;-)

1 Alabama's picture

maybe that was his job, he's registered

tmosley's picture

Peanutz HATE Peter!!!

Captain Nemo de Erehwon's picture

I could think of a million other things equally useless and even harder to do ...

olibur's picture

The West is trying to save its ponzi bs. Not gonna work.

Nick O'Teen's picture

If memory serves me right, PayPal was shutting down people's accounts a few years ago if they did anything related to bitcoin. This was around the same time Apple also cast bitcoin in a dim light (and all bitcoiners dumped their iPhones). Funny how all of a sudden both of them come out in support of it....what are they up to?

gunzeon's picture

exactly right, funny how the smell of money draws these lizards out into the sunshine !

just another duplicitous, deceitful, scamming cocksucker.

Jeffersonian Liberal's picture

They've realized that all cryptocurrencies are just another form of fiat currency.

They have no basis in an external value, can be created on a whim.

And they best part of it is that it is digital, which will give (maybe not at the moment) the State complete control over who has and who accepts this 'currency' in order to pay for basic sustenance of life.

Amazing to see so many otherwise intelligent and counter-State ZHers falling for this bullshit.

kochevnik's picture

Or unlike you they know how to use dictionary and did not sleep in physics 101 class

Jeffersonian Liberal's picture

I have dictionaries all over the place, but I don't need one for this.

As Austrian economists, we understand "fiat currency" to mean any currency that is not based on any other object of fixed and recognized value.

That means that some people are allowed to create more of the currency "out of thin air."

That is what a digital currency is.

And if it is on a computer, someone else has control over it.

To address your silly ad hominem attack, sleeping through physics has nothing to do with allowing some third party to create currency out of thin air, thus empowering the State and, through the digital currency that is the fantastic dream of all Statists, giving them utter control over the citizenry.

If you think you are able to live 'off the grid' with your cryptocurrency, it was you who slept through class (to see your ad hominem and raise you), and that was the literature class where you should have been reading 1984.

Endgame Napoleon's picture

Where are you going to exchange gold for something that secures the basics of life in an emergency? Are you going to rush out, along with umpteen other gold holders, offering it to the jeweler on...every....corner?

Will gold be valuable in an emergency when everyone and his dog is resorting to the same gold-selling tactic, making it oh so easy for jewelers to secure gold?

In terms of selling it to get basic items, Eighties-era gold jewelry was not even of great value to retailers when gold was surpassed by silver as the trendy jewelry metal of choice. Many women tried to sell their gold, getting a pittance for it.

This is also 1) the Era of Yoga Pants for all classes and 2) the Era of Middle Class Demise. The jewelers’ market is likely more limited and flooded with retail competitors, all chasing the same narrow clientele. If you have ever sold a luxury item, particularly a custom luxury item, you know what I mean.

If the system goes down, I just do not see jewlers panting to buy your gold, willing to pay you enough to put food on your table or to cover your rent. In a major financial emergency—as in a massive natural disaster—the people who will survive if things are really bad are the ones who have paid-for homes and the know-how to grow their own food and fix their own cars, etc.

Jeffersonian Liberal's picture

There are different stages of the "store of value" and "purchasing power" as it applies to precious metals or any other commodity of fixed and recognized value.

As a currency fails, that alternate store of value maintains one's purchasing power. That is, it purchases more of the currency that may be needed to purchase sustenance.

There is a point after total collapse where no store of value (cash, coin, gold) have much value in purchasing the basics of sustenance. That is when you enter a bartering period and people are looking for food, shelter, arms, ammo, travel, communication, medicine, etc. That is a completely separate hypothetical for the discussion.

My point, and the point of those who are objecting to a digital currency is this: it is a form of fiat currency. The Central Banksters will control it to suck its purchasing power from it, using their profits to invest in those things that retain their value, and they will do so until the digital currency is destroyed.

We also argue that you will not be allowed to have BitCoin or any other "privatized" currency. Try to use your own currency in the US and see what the IRS do to you. If we do switch to a digital currency, it will be owned, operated, and controlled by the State through the Central Bank (and vice versa in certain areas).

In addition to all the weakness of fiat currency (inflation, deflation, theft of purchasing power, debt-based economic growth, etc.), digital currency adds this:

It gives a malevolent State the ability to shut down any individual that they want to control. It also allows them to track your each and every move. Again, if you think you will operate in the shadows using your private digital currency, you are deluding yourself. Such an act will be regarded the same as counterfeiting and users of such a privatized currency will be hunted and punished, just as with counterfeiting.

Now, you and the other BitCoin pimps may have some fantasy of living off the grid and in a Black Market of cryptocurrencies, but you are all deluding yourselves if you think living the life of a Mafioso style criminal is going to be an enjoyable and poetical rebellious life.

You will be living the life of a meth dealer. Plain and simple.

Captain Nemo de Erehwon's picture

They will convert it to monatomic gold, the food of the gods, and will live forever in eternal health and bliss while having visions of all the multiverses outside of the bounds of space and time.

Justin Case's picture

ZHers falling for this bullshit.

It's all part of the conditioning process. Gov't will adopt anything that gives them moar control over it's people. If Gov't rolled it out it would have been rejected as a way of taking one's freedom and privacy. When someone else does it,  it doesn't project that thought.

libertyanyday's picture

its digital gold............why all the hype and mystery?  The traits that gold has make it a bankers kryptonite. why would a CB want to allow btc as a legitamate currency?  It has no physical presence it exists only in the ethos.  if the power goes out , you have no wealth.........how is that money??

Anteater's picture
Birds flying high
You know how I feel
Sun in the sky
You know how I feel
Reeds driftin' on by
You know how I feel It's a new dawn It's a new day
It's a new life
For me
And I'm feeling ... WHAT DO YOU MEAN BTC FORKED AND NOW IT'S WORTHLESS!!! WTF??!!
bcking's picture

6,000 dollars per BTC doesn't seem worthless to me. I'm sorry you didn't read the Bitcoin whitepaper in 2010 like the rest of us.

SickDollar's picture

Very moronic statement

there is a lot of sheepishness left in you with that statement

bcking's picture

If you only knew my semi-retarded friend. Having been a Bitcoin miner and buyer since '11 I think I have the upper hand....if you only knew  :) Good luck to you. My "luck" has paid off.

SickDollar's picture

kneegrow

let me give you something to think about

Cryptos are not a mortal threat to fiat currencies. They are symbiotic. Crypto enthusiasts talk about how much they've made in fiat. Cryptos are proxies for fiat, for which they can be exchanged. Cryptos are vehicles for moving fiat to circumvent capital controls.

But imagine if fiat went to zero. Gold and silver would be used in commerce. How much gold or silver do you think cryptos would buy in such a circumstance?

Praeda2's picture

Your luck? You were born black. That goes together about as well as oil and water.

Bill of Rights's picture

It is you the sheep who missed this run up...Go play with your Silver coins little man.

SickDollar's picture

something to think about Sheeps:

 

Cryptos are not a mortal threat to fiat currencies. They are symbiotic. Crypto enthusiasts talk about how much they've made in fiat. Cryptos are proxies for fiat, for which they can be exchanged. Cryptos are vehicles for moving fiat to circumvent capital controls.

But imagine if fiat went to zero. Gold and silver would be used in commerce. How much gold or silver do you think cryptos would buy in such a circumstance?

Praeda2's picture

How about I crack you in your bitch mouth with a kilo bar? Your flash drive with your 'btc' will fall out of your dirty, faggot ass which I'll then step on hahaha. All your 'money' gone.

Bendromeda Strain's picture

I don't appreciate your racist whitewashed Photoshop avatar. I have the original picture you appropriated, and young Mr. Martin was much, much darker complected. If someone like Eboni K. Williams wishes to lighten her skin for a book cover that is her choice. Your avatar chose even more poorly, but he sure didn't choose whiteness.

God is The Son's picture

Speculative. it's 6000 because those investing belive it's going be the future world currency. Once reality sets in it's to ZERO. When will the people pay 100,000 for 1 Bitcoin, so that those that got in early can live like kings.

Praeda2's picture

Who are you kidding? You can't read. Stupid nigger.

Jeffersonian Liberal's picture

The second part of your comment is correct, but it is not kryptonite to the CBs.

The CBs will control and manipulate this for their own profit just as they have done every currency that they have been given control over.

The fact that it is digital gives them even greater control. They don't need for the power to go out. All they need to do is freeze your account.

kochevnik's picture

BTC has no account, genius.  

Jeffersonian Liberal's picture

It is controlled via computers. That means, regardless of having an 'account' your store of the currency and your use of the currency can and will be controlled by others, such as the State, such as Central Bank.

If you know anything about the digital world, you know you have no privacy and no safety not only on the Internet but on your own computer if it ever links up.

This is a currency that the Statists salivate over because it will give them Orwellian control over the citizenry.

This is a currency that the Central Banks salivate over because it will allow them to suck the purchasing power out of yet another currency until it is drained of all its value...all the while investing their profits in those investments that not only secure their wealth but also give them greater control over the citizenry.

Genius.

11b40's picture

You just can't wrap your head around de-centralization.

Governments can create their own cryptos, but can't control what individuals do with competing de-centralized cryptos.

Try to think of what happens when the world wakes up to this.  Would you prefer to hold a private crypto like BTC for example, that has a finite number of coins that cannot be debased by hitting control P, and are not visible to governments, or a government issued crypto?  BTC is an International currency, backed by the full faith of mathmatics & technology.  Do you have more faith in the hodge-podge of various corrupt governments and bankers around the world, or in math & science?  I know my answer.

Jeffersonian Liberal's picture

It will never be decentralized.

It will be a currency controlled by the State and Central Banks.

It will not operate in the shadows and off the grid. It will be legislated as a form of counterfeit if it is not controlled by the State and the Central Banks.

Those who attempt to use it will be forced to live the life of the Mafia counterfeiter and the meth dealer.

The Federal Reserve will not tolerate competition to the currency they have spent so much time, energy, and legislation in coming to control. They will come up with a digital form of their currency and in so doing will outlaw all others.

Think of life only through your credit card. No cash. Your card being rejected whenever the State decides. Every transaction being tracked and recorded and databased.

If you try to use your own 'counterfeit' digital currency, they will hunt you down and punish you.

There will be no privatized currency of any type until we get rid of central banking and return to the old 'wildcat' banking days when there were many currencies in competition with one another and where the market forced those currencies to be true or those currencies disappeared. That is why we are taught that those old wildcat days were horrible, because it was better than central banking.