Peter Thiel, the PayPal co-founder, recently made some bold claims about Bitcoin, calling it an invention so significant that society is struggling to understand its full implications. He believes Bitcoin’s impact is far-reaching and transformative.
Bitcoin: Beyond Comprehension?
Thiel described Bitcoin’s rise as “a pretty big deal,” highlighting its exponential growth over the past decade. He argues that Bitcoin’s disruptive nature is similar to a “tax stagnation” – a situation where society finds it hard to process the implications of a major shift. He points out that Bitcoin was underestimated for years, experiencing a steady, upward trajectory without a sudden, massive price correction. This slow burn, according to Thiel, is partly why its impact is only now becoming fully apparent.
Comparing Bitcoin to the Internet
Thiel draws a parallel between Bitcoin’s current growth and the internet’s adoption in the late 1990s. While the internet was launched in 1989, it only achieved widespread global use around 1999. He suggests Bitcoin is following a similar path, experiencing explosive growth and recognition after a period of relatively slow initial adoption.
A $200 Trillion Market Cap?
Adding fuel to the fire, Michael Saylor, founder of MicroStrategy, predicts a massive increase in Bitcoin’s market capitalization. He envisions a jump from the current $2 trillion to a staggering $200 trillion – a 100x increase. Even at that valuation, Saylor believes Bitcoin would still be smaller than other asset classes like equities, real estate, and bonds, but its influence would be undeniable. He even goes so far as to call Bitcoin “digital gold,” suggesting it’s far superior to traditional gold.