Peter Thiel is an investor with a net worth of $2.6 billion, so he hasn’t made too many wrong financial decisions in his life. Now, he believes that Bitcoin has a lot of potential to be explored and that the cryptocurrency is better than gold, informs NewsBTC.
“I’m skeptical of most of them (cryptocurrencies), I do think people 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. If Bitcoin ends up being the cyber equivalent of gold it has a great potential left,” said Peter Thiel at the Future Investment Initiative in Riyadh, Saudi Arabia.
A bit difficult than getting actual gold!
Continuing the parallel with gold, the 50-years old entrepreneur compared the mining process of the precious metal with the one that involves Bitcoin, but added that it is a lot harder to produce the cryptocurrency because of its mathematical system and proof-of-work (PoW) consensus protocol.
How hard it is? Earlier this month, ING, one of the largest financial conglomerates in the Netherlands, unveiled that the verification of a single bitcoin trade uses the same electricity amount required to power a house in the Netherlands for one whole month.
The Woz believes that Bitcoin can go even further than this!
Despite the costs, Steve Wozniak, the co-founder of Apple, thinks that Bitcoin has enough room to grow, thanks to its transparent structure and decentralized nature.He said that while gold can be mined over and over, there is a certain finite amount of bitcoin that can ever exist.
Peter Thiel, Steve Wozniak, and Tom Lee are all experts that see Bitcoin as a miracle currency, efficient and robust. They believe that, in the long-term, if general consumers start taking it more into consideration, it will rise at an exponential rate.