Published: Fri, January 12, 2018
Finance | By Loren Pratt

Peter Thiel's VC firm bought huge amounts of bitcoin

Peter Thiel's VC firm bought huge amounts of bitcoin

It wasn't clear whether Founders had sold any of its holdings, the report said.

Bitcoin has developed from being a niche investment to becoming a household term in recent months, thanks largely to its surge in value since the start of 2017, when it was trading at around $1,000.

It is not now known whether or not Founder's Fund has liquidated any of the Bitcoin in its reserves.

In the beginning of August, which is more or less mid-year, the price of bitcoin was still below the $3,000 mark. Those bitcoin holdings are now worth several hundred million dollars, people familiar with the matter told the Wall Street Journal. TThe bitcoin prices have been driven by news over the last couple of weeks with the news of more regulations on the industry from South Korea leading to a fall in the prices. Thiel bought large sums of bitcoin that are now worth more hundreds of millions of dollars. Now Thiel and his fund are buying bitcoin outright, as opposed to investing in other companies doing the gambling.

In October, he called Bitcoin the gold in the cyber age at an event in Riyadh, Saudi Arabia. In the hours following the release of the Journal report, the cryptocurrency surged upward in price by almost $1,000 after early trading that had already been on a more modest upward trend.

After a fairly slow New Years weekend which saw Bitcoin prices drift down from $15,000 to the low $13,000's, the latest spark in the digital currency's rise to stardom has come late Tuesday in the form of a major endorsement from a very respected and successful Silicon Valley investor. 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. He compared bitcoin mining with mining for gold, calling the former more hard than the latter, and referred to the fact that only 21 million bitcoin will be created, due to the nature of the cryptocurrency's code.

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