Peter Thiel, a prominent venture capitalist and entrepreneur, recently weighed in on Bitcoin’s impact while discussing technological innovation on the Joe Rogan Experience podcast. He described Bitcoin as a “big invention,” emphasizing its significance even though its true impact is still being debated. Thiel used Bitcoin as an example to illustrate the often-overlooked potential of artificial intelligence (AI).
He pointed out that Bitcoin’s rise was gradual and underestimated for the first decade of its existence. This, he argues, is similar to the current state of AI, where its potential is often downplayed due to conflicting opinions and slow progress. Thiel believes that both Bitcoin and AI are “pretty big deals” that have yet to be fully appreciated.
Thiel, known for his early investments in companies like Palantir and PayPal, compared the impact of Bitcoin to the internet, a transformative technology in 1999. He went further to assert that AI surpassing the Turing Test (a test designed to assess a machine’s ability to exhibit intelligent behavior equivalent to, or indistinguishable from, that of a human) would be even more significant than the internet.
Thiel’s perspective on Bitcoin as a “moderately big” innovation is insightful. While Bitcoin has gained significant attention and popularity, it has yet to achieve widespread adoption as a mainstream currency. Despite this, it offers several advantages, including decentralization, protection against inflation, lower transaction costs, and enhanced security. However, challenges remain, such as regulatory scrutiny, susceptibility to fraud, and the lack of inherent value. Despite these hurdles, Bitcoin is increasingly traded as a speculative asset.
The crypto market, including Bitcoin, has been one of the top-performing sectors in 2023, exceeding the performance of traditional equity markets. Thiel’s venture capital firm, Founders Fund, reportedly invested heavily in Bitcoin and Ethereum in 2023, further demonstrating its confidence in the crypto space.
Thiel’s comments highlight the ongoing debate surrounding Bitcoin’s true value and AI’s future impact. While Bitcoin may be viewed as a “moderately big” innovation, its potential and its role in shaping the future remain significant. AI, as Thiel suggests, has the potential to be even more transformative, challenging the status quo and reshaping various aspects of our lives.
