The well-known Silicon Valley venture capital firm Founders Fund a big bet on bitcoin
According to informed sources, PeterThiel set up joint venture company FoundersFund has amassed hundreds of millions of dollars worth of bitcoin. These people said, these a few scattered investment fund recently established in the company, including a began in mid 2017 and will invest bitcoin as one of its first bet fund.
Founders and the 50 year old Thiel FacebookInc. (FB) by virtue of the early investment company’s fame, these investments sometimes take years to return. While bitcoin investment soon great success. Founders bought about 15 million -2000 million dollar coins, the company said investors in the past year bitcoin rose, the value of these investments currently has hundreds of millions of dollars. It is unclear whether Founders has any sale of bitcoin. The investment has not been reported previously.
Last year, bitcoin from a Wall Street is not too concerned about the field became the most talked about financial assets. Bitcoin is essentially a behind no government or central bank to support the digital form of currency. At the beginning of 2017 bitcoin price at around $1000, but with the retail and institutional investors flocked to the encryption of currency speculation, bitcoin prices quickly soared to nearly $20000. However, in December last year after reaching record highs, bitcoin prices in half a month after nearly halved.
Study on the website CoinDesk data show that as of late Tuesday, bitcoin prices rose 10%, to $14783, ending in 2017 at around $14000. In the “Wall Street journal” reported that Founders (TheWallStreetJournal) after the bitcoin investment, bitcoin prices jumped. Scanty mainstream investors aggressively buying bitcoin, network security and liquidity concerns and to investment losses more general worries about them off. JP Morgan chase (JPMorganChase&Co., JPM) CEO JamesDimon said bitcoin is a hoax, and water bridge (BridgewaterAssociatesLp) founder RaymondDalio said bitcoin is a bubble. Even some investors already hold bitcoin is cautious in excessive public voice, so as not to cause the attention of hackers.
At the end of 2017, bitcoin prices plummeted also makes some investors panic. Renowned investor MichaelNovogratz said in December 22nd that he will launch a delay for outside investors, focusing on crypto currency hedge fund, said the current market conditions for introducing new investors. The South Korean bitcoin trading volume accounted for the proportion was as high as 1/4 in the global total bitcoin transactions in the country, announced last week that will hit the encrypted currency transactions, this is a bad omen. Informed sources said, before the sharp fluctuations in the price of bitcoin recently, Founders began to investors to buy bitcoin.
Billionaire Thiel is an outspoken liberal, he and partner co founded digital payment services company PayPalHoldingsInc. (PYPL), he is also the president of the United States Trump (DonaldTrump) is one of the important supporters. Thiel served in the Trump technical advisory committee. Thiel and FoundersFund is Silicon Valley’s most successful venture capitalists and venture capital institutions. Founders management of assets of more than $3 billion, including Facebook, Audemars Pigeut has shares (Airbnb), SpaceX and Lyft, more than 100 companies. Founders recent investments include the focus on encryption currency hedge fund MetastableCapital and PolychainCapital, the latter specialized investment block chain company.
According to informed sources, Thiel is making a purchase decision and other bitcoin investment partners of Founders. An investment conference last October Thiel in Saudi Arabia at the interview on the spot said, crypto currency attractive. Thiel said at the time, though he was skeptical of most crypto currencies, but he does think that some people underestimate the bitcoin, because bitcoin as a reserve currency, if bitcoin eventually became the network equivalent of gold, it does it with great potential.
One investor said, Founders directly buy bitcoin rather than support other companies engaged in the field of business, it seems to deviate from the VC investment in traditional. But the insider, in communication with investors, Founders will try to describe the representative of bitcoin investment into the company and other similar risk investment of high risk and high return on. The Founders representative told supporters, the influx of technology companies will push the valuation of funds has reached record highs, which makes equity investment such start-ups face greater risk. While bitcoin may rise several times in the next few years.
Thanks to the rising price of bitcoin, bitcoin bets estimation has become the Founders $1 billion 300 million new venture capital fund the most valuable investment. Close to Founders informed sources said that the fund has not been a lot of investment. Founders also issued a warning to investors that bitcoin with more traditional venture capital investment does have a common potential risk: bitcoin may eventually become not worth a hair, or almost not worth a hair.