Bitcoin has faced a lot of resistance over the years, from governments to traditional financial institutions. Although governments are yet to fully accept Bitcoin and other cryptocurrencies, they are working hard to develop their central bank digital currencies. Peter Thiel thinks Bitcoin could undermine America’s position as the leading economy.
Thiel thinks China will use Bitcoin to undermine America
PayPal co-founder and venture capitalist Peter Thiel believe that Bitcoin could be used to undermine America’s position as the leading economy. He admitted that although he is a Bitcoin maximalist, he thinks the United States needs to consider tighter regulations on cryptocurrencies.
Thiel made his position known in an appearance earlier this week. According to a Bloomberg report, the statement marks a drastic change for Thiel, an investor in certain cryptocurrencies and digital currency companies.
He stated that “I do wonder whether, at this point, Bitcoin should also be thought [of] in part as a Chinese financial weapon against the U.S. It threatens fiat money, but it especially threatens the U.S. dollar. [If] China’s long Bitcoin, perhaps from a geopolitical perspective, the U.S. should be asking some tougher questions about exactly how that works.”
Thiel said this during an appearance at a virtual event held for members of the Richard Nixon Foundation. Peter Thiel was joined by former Secretary of State Mike Pompeo and former National Security Advisor Robert O’Brien. The conversation was focused on U.S.-China relations, and Thiel maintained his position that he is not a fan of American companies that do business with Beijing.
Bitcoin split views
Bitcoin’s potential as an asset or a medium of exchange has been vastly discussed over the past few years. Some analysts believe that Bitcoin is a means of exchange since Satoshi Nakamoto created it to be a decentralized form of money. However, others maintained that Bitcoin’s high volatility makes it more of a store of value than a currency.
Its value rose dramatically over the past year as retail and institutional investors open up to Bitcoin and the other cryptocurrencies.