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To Avoid Wildly Overvalued Tech Ventures, Peter Thiel Invests In Bitcoin

The latest Founders Fund is off to a rather auspicious start.
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(Getty Images)

(Getty Images)

Have pity on the poor tech VC. After years of breathlessly hyping their books, Silicon Valley is chock with trend-following opportunists pushing valuations beyond all reason. For the discerning investor, there few options that aren't wildly speculative, dangerously unproven, ludicrously overpriced, or some combination of all three. That's why Peter Thiel has gotten his latest fund off the ground by pumping its capital into an asset class that shares absolutely none of those features: cryptos!

Founders Fund, the venture-capital firm co-founded by Peter Thiel, has amassed hundreds of millions of dollars of the volatile cryptocurrency, people familiar with the matter said. The bet has been spread across several of the firm’s most recent funds, the people said, including one that began investing in mid-2017 and made bitcoin one of its first investments.

Somehow, if you're an uber-libertarian revenge-fetishist concerned that there's too much money chasing too little potential in really-existing companies that actually aim to meet some demand apart from speculation, your only option is the thing whose only real purpose is speculation. From the WSJ, which first reported the position:

The representatives have told firm backers that a cascade of cash into technology companies has stretched their valuations to historic highs, making stakes in startups as dangerous a risk as ever. Bitcoin, on the other hand, could multiply several times over in the coming years.

Again, just to make sure we've got this straight: There's too much dumb money in tech startups, unlike...bitcoin.

Anyway, since the headline PETER THIEL HAS SHITLOAD OF BITCOIN is the reddest of red meat for crypto enthusiasts, bitcoin shot up on the news:

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The only surprising element in all of this is that Thiel evidently piled his whole bet into bitcoin, and not any of its big-name alternatives – Ripple, Ethereum, Litecoin – or even more recherche names like Neo or Dogecoin. We know Thiel has been a bitcoin fan for a good while now, but you would think he'd have expanded his tastes a bit since in the past few years. Then again, it's hard to imagine the lawless seasteading city-states of the future anarcho-elite using anything other than bitcoin.

Peter Thiel’s Founders Fund Makes Monster Bet on Bitcoin [WSJ]



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