News broke earlier today that Venture Capital firm Founders Fund made a pretty massive Bitcoin (BTC) investment at some point in the past. The firm, which was co-founded by Peter Thiel, originally paid between $15.0m million and $20.0 million. Today, that Bitcoin investment has grown to be valued in the hundreds of millions.
Mr. Thiel is most widely known for co-founding PayPal. He was also an early Facebook investor – and has been a famous billionaire entrepreneur for quite some time.
The news that he has made such a killing by investing in Bitcoin is definitely a positive for the someone lagging crypto-coin. It adds another layer of confidence from the venture capital sector – further legitimizing this cryptocurrency as a lucrative and reliable financial asset.
After all, Bitcoin has been gradually losing market share. Up-and-coming alternative coins like Ripple (XRP) are soaking up all the attention – and making much more impressive price gains than Bitcoin.
But it has still maintained its number one spot when it comes to market value. It’s still in first place by a long shot. The next closest is Ripple (XRP), which is worth a little less than half of Bitcoin.
What does this mean for the price of Bitcoin (BTC)?
It almost hit the $15,600 mark today, but re-corrected down below $15,000. It has since bounced back to $15,400 – but has slipped back down to $15,009.44. Compared to 24 hours ago, it’s up less than 0.3%.
Bitcoin is actually down 3% from its price a week ago.
Its market share is being slowly devoured by altcoins that achieve pretty much the same thing – but faster and cheaper.
The news about Peter Thiel seemed to be a bit of a minor boost to this crypto-coin’s price earlier today. It’s already the most mainstream and socially integrated cryptocurrency on the market. Can news stories like this really boost its legitimacy that much?
Bitcoin (BTC) hasn’t seen the kinds of gains that altcoins like Stellar (XLM) and NEM (XEM) are experiencing. It has also been a pretty reliable store of value – and has made firms like Peter Thiel’s super a lot wealthier.
We are still keeping our eyes on the number one crypto-coin, as always.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.