The Facebook Inc. board member on Thursday said Bitcoin will become more important, squeezing out Ethereum and other newer cryptocurrencies. His venture firm, Founders Fund, has been quietly buying Bitcoin since 2012 — as has Thiel who is worth more than $3 billion, according to Bloomberg estimates.
Thiel compared Bitcoin to a digital version of gold and argued that the quest to amass money “is the bubble that never pops.”
The housing market is another matter. Thiel, whose hedge fund Clarium Capital soared during the housing collapse and later imploded for failing to quickly spot the recovery, singled out high-priced housing as the main growth barrier for coastal startups.
He joins a growing group of venture investors searching the country’s heartland for startups to bankroll and says the next innovations will likely come from less insular, less expensive areas. Despite a steady decline in recent years, Northern California and New York startups still attracted more than half the $70 billion total venture capitalists invested in the U.S., according to the 2017 MoneyTree report.
Along with geography, sector is important, Thiel said. Artificial intelligence companies don’t appeal to him, but “charismatic” technologies do like Bitcoin, biotech and anything his longtime friend and fellow PayPal co-founder Elon Musk develops…