Breaking News
PayPal Cofounder Peter Thiel’s Founders Fund Invests Millions In Bitcoin
The prices of bitcoins have increased within the past weeks, which have left most players in the bitcoin industry with huge gains and bigger investors with millions of profits. The bitcoin price, specifically this boom, is caused by institutional investors who are probably preparing for the future exchanges of bitcoin in the digital currency industry.
It seems that Bitcoin is going to benefit greatly from the injections of institutional money from big investors (who presently have flooded the market for purposes of making profits when the bitcoin prices reduce).
Bitcoin traded above 11,059 or $ 15000 mark on 3rd January 2017, spurred by a report which reported that Founders Fund, US venture capital firm placed a huge bet on the cryptocurrency. Wall street journal did claim that Founders fund (a venture capital that was co-founded by investor Peter Thiel had already bought $15-20 million worth of Cryptocurrency that is currently worth hundreds of millions.
The digital currency price increased by over 17 percent hitting $ 15,393 on 3rd January this year, according to CoinDesks Bitcoin price index. The journal claimed that bitcoin investments are currently spread across numerous launched funds of firms, which include the one launched in the middle of 2017. However, details of when investments were made or if the Founders fund sold some of its Cryptocurrency assets were not provided.
Eight years ago, Bitcoin was not common among people, but in the recent months, Bitcoin has become a household niche because of the unexpected surge in its value at the beginning of 2017 when it traded at$ 1000. It has now hit a record of approximately $ 20000 in December 2017, before it reduced to $ 12000 within a few days. Its value has been unstable since then, and at the beginning of this year, it has been trading below $ 13000-and this fact reveals that it is on the rise.
Despite the fact, bitcoins remains volatile in the market, and that people are skeptical about other cryptocurrencies, some business such as Mr. Thiel, co-founder of PayPal claims that bitcoin is still underestimated by most people who do not understand its worth. Bitcoin, he claims, just like gold, should be understood as a value store, which should not necessarily be taken as what should be used to make payments.
With Thiel's reasoning, one can claim that the upward trajectory of bitcoin in the market continues, traders will be able to experience higher record prices in the coming months—Bitcoin can be growing because of its lack of control from big banks and external regulation.
In summary, some people might think that bitcoin is a dangerous bubble and the rise is caused by market manipulation. However, it is crucial to understand that the real Cryptocurrency value is never driven by price, but by the utility.
Even though bitcoin appears to be a bubble gold pot for its users or buyers, the Cryptocurrency future is being established. Because nobody could have predicted in 1990s the value of the available projects such as Apache and Linux, nobody is also able to predict what positive value Bitcoins might bring to our generation and generations to come.
