U.Today - Billionaire investor Peter Thiel recently discussed his opinions on the current state of Bitcoin, arguing that a large portion of its potential value has already been reached.
According to Thiel, there will not be any significant price increases for Bitcoin from where it is at the moment. He said he does not think Bitcoin would go up dramatically from here, expressing his opinion that the significant price increases for Bitcoin might be over.
Thiel expressed his regret for not having purchased more Bitcoin sooner and his skepticism regarding the cryptocurrency's future, especially in light of the emergence of decentralized computing. In addition, he brought up the FBI's preference for criminals to use Bitcoin instead of fiat money like $100 bills, underscoring the ability to trace the digital gold.
Thiel claims that this makes it even harder for Bitcoin to gain traction as a mainstream financial asset. Thiel made an important observation when he said he thought big financial firms like BlackRock (NYSE:BLK) and its CEO Larry Fink had appropriated Bitcoin.
While the institutional involvement gave Bitcoin legitimacy, it is possible that it diverged from its original cypherpunk ideals of financial autonomy and decentralization. According to Thiel, the revolutionary decentralized nature of Bitcoin may be losing its initial appeal.
Remarking that traditional financial institutions have undermined Bitcoin's potential as a revolutionary financial technology, he expressed less faith in the cryptocurrency's ability to play a significant role in a decentralized future.
Thiel acknowledged the volatility of Bitcoin and its possibility for some upward movement in spite of this. While there may still be opportunities for gains, they come with significant risks. It can still go up some, but it will be a volatile bumpy ride, he said.