Peter Thiel Labels Bitcoin a "Moderately Big Invention," Highlights Systematic Underestimation in Early Years

Peter Thiel recently shared his thoughts on Bitcoin, calling it a "moderately big invention" compared to the Internet. He believes that Bitcoin was systematically underestimated during its first 10 to 11 years. Created in 2008 and used as a currency starting in 2009, Bitcoin has sparked a lot of discussions about technology.

In a recent episode of the Joe Rogan Experience podcast, Thiel commented on Bitcoin (BTC/USD). He said, “Bitcoin was a big invention. We can debate whether it was good or bad, but it was a pretty big deal and was systematically underestimated for at least… the first 10-11 years.” He used Bitcoin as an example to highlight the slow progress of artificial intelligence, which often receives mixed opinions.

Thiel noted that Bitcoin’s trading increased gradually over its first decade. It didn’t get a sudden revaluation. He explained that we struggle to process big changes in a world where major events are rare. He compared Bitcoin to the Internet, which he viewed as a significant innovation back in 1999, while placing Bitcoin in a more moderate category. He also mentioned that if AI ever passes the Turing test, it would be a breakthrough on par with the Internet.

Despite Thiel’s view of Bitcoin as a “moderately big” innovation, it still hasn’t achieved widespread acceptance. Bitcoin and similar cryptocurrencies offer advantages like decentralization, protection against inflation due to limited supply, lower transaction costs, and enhanced security. However, obstacles like scandals, government regulations, and concerns about online fraud hinder their broader use.

Still, cryptocurrencies are actively traded as speculative assets. Bitcoin performed well in 2023, outperforming traditional equity markets. Thiel’s Founders Fund, a venture capital firm, reportedly invested $200 million in cryptocurrencies, including Bitcoin and Ethereum (ETH/USD), from late summer to early fall in 2023.

This year, Bitcoin has increased by over 38%, while the S&P 500 Index has risen about 16.5%. Currently, Bitcoin is trading at $58,465.96, down 1.78%, according to data from Benzinga Pro.