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Bitcoin, the world’s first blockchain, was created to address the flaws of the centralised financial structure. PayPal co-founder Peter Thiel, on the other hand, elaborated on the position of digital currencies at a recent Richard Nixon Foundation gathering.
Bitcoin, according to Peter, is a challenge to fiat money. He saw it as a Chinese financial tool, and he wanted the United States to win the war.
“It threatens fiat money, but especially threatens the US dollar. If China is long on Bitcoin, perhaps from a geopolitical perspective, the US should be asking some tougher questions about how that exactly works.”
Being a pro-Bitcoin maximalist himself, Thiel’s remark managed to create pandemonium in the crypto-community.
Anthony Pompliano, founder and partner at Pomp Investments, went on to defend Thiel’s position, pointing out the rise of foreign competition in the emerging crypto market. He emphasised that other nations were attempting to do this to destabilise and financially attack the United States. In a new interview with CNBC, he said,
“What we need is the United States to be the leader here. We need to embrace this and make sure to use this technology to remain the leader on the global stage.”
It is important to note at this stage that China is the central centre where the majority of Bitcoins are actually mined. The United States, on the other hand, is attempting to refine and construct its crypto infrastructure as soon as possible.
Pompliano said that Great American Mining collects stranded gas and uses it as Bitcoin mining fuel, and Kentucky has announced tax cuts for crypto miners.
“What we are seeing is a revolution when it comes to Bitcoin mining and power generation in the United States. We are going to continue see the build-out happen.”
Talking about the political landscape, he said,
“We have senators and congressmen that hold bitcoin and are pro-bitcoin. So, they’re going to continue to push the pace of innovation and embrace this stuff.”
However, Bloomberg’s recent Crypto Outlook report titled ‘Rising Bitcoin Adoption Tide’ narrates another constructive tale that underlines the threat gold faces because of Bitcoin. The report predicts Bitcoin having a fairly high chance of stepping into the portfolios of traditional investors.
The report highlighted,
“Gold is fighting a battle with Bitcoin, which can earn 6-8 percent in crypto saving accounts and is well in its way to becoming a global reserve asset in a digital world.”
The escalating institutional and retail demand for Bitcoin may cause it to hit price extremes close to those seen during the 2017 bull run and now. If all goes well, Bloomberg predicts that Bitcoin’s price will rise to $400,000 by the end of the year.