Founders Fund Invests in Bitcoin

January 12, 2018 by Adrian Thorpe

Peter ThielYou may of heard of Peter Thiel, he is the man behind the formation PayPal and he is also the man in charge of an investment firm too, that being the Founders Fund.

Looking for smart investments is something that he is famed for doing, and he is also prepared to put his money where his mouth is when any opportunity arises that looks like it is going to bear fruit!

It would appear that he has finally decided the Bitcoin is a worthwhile investment, and it is very true to say he has waited a long time to finally come to that conclusion, but in his own unique style he has recently gone out and purchased $15-$20million of the digital currency on behalf of the Founders Fund!

That investment firm has made some wise decisions in the past, having made some large investments in various companies, and also putting up the seed money to start many businesses that have grown rapidly, a couple of them that spring to mind are Airbnb and SapceX

So the fact that he has had the faith to invest a not insignificant amount in Bitcoin is an indication that despite the constant rise and falls in the value of that digital currency he is of the mind it is certainly an investment he wants to be actively involved in.

When the announcement was made that the Founders Fund had bought a huge holding of Bitcoin the value of Bitcoin did increase, however I am of the mind he is looking at some long term returns and wouldn’t have bought into Bitcoin with the aim of a hit and run style investment!

Similarities between PayPal and Bitcoin

If you think back to when PayPal was launched, when Thiel was still involved in that money transfer service company, a lot of people did raise concerns that it was going to be used primarily for illegal activities, and as such there are a lot of similarities between PayPal and Bitcoin.

But as PayPal proved there was a desperate need for a reliable and secure way for people to move money around online without relying on their credit and debit cards, and the ease of use of PayPal saw it becoming the most used and most popular of web wallets, which it is still today.

Whilst there is of course no way for Thiel to invest in Bitcoin as a company or as a service, he is doing what a lot of people before him have been doing, simply looking at it as something that is going to increase in value and make the Founders Fund a lot of money.

There are of course going to be risks, much more so when you do pump so much money into just one single digital currency, but when you weigh up the risks, and the long term longevity of digital currencies as a whole it does look like he has made a wise and sound investment.

However, time is going to tell if that investment is going to return the levels of profit any investment fund or company is looking to achieve, however with some impressive percentage increases in the value of Bitcoin recently, it has certain proven to be a better investment than simply putting money into a saving scheme.

Bank of Ghana Also Investing in Bitcoin

It was of course only going to be a matter of time before a bank chose the route of investing in Bitcoin, and whilst I would have imagined it would have been one of the better known investment banks that would have shown an interest in doing so first, it was the Bank of Ghana that made the decision to invest in Bitcoin first!

With more and more people, companies and even banks now looking at Bitcoin but also many other digital currencies, that is proof as is proof is needed that they are here to stay, and I am aware that many of the people involved in the fiat currency and finance industries who were once talking down Bitcoin are beginning to warm to it and many other currencies too.

Plus, even the Bank of England have shown an interest in digital currencies, not as an a way of investing of course, but in regards to the feasibility and the possibility of them also launching their own digital currency that is linked up to the value of Pounds Sterling. It really I going to be an interesting year watching the cryptocurrency environment maturing!