Bitcoin is a decentralized digital currency system that does not function under the supervision of a central bank. Business transaction happens directly between one user and the other. Transactions are recorded in a block chain (decentralized public ledger) where verification of transactions is undertaken by network nodes through utilizing cryptography. Thiel’s Founders Fund buying Bitcoin from 2012.
Cryptocurrencies are a subcategory of digital currency system and are even stated to be a subset of virtual and alternate currencies. Cryptocurrency is also called as a digital asset that serves as a medium of exchange. Cryptocurrency utilizes cryptography for ensuring safe transactions, transfer of assets and avoiding creation of additional units of its currency.
Uses Of Cryptocurrency
- Travel Worldwide – Booking air tickets online using bitcoin system. For example, Expedia and CheapAir are travel agencies that accept bitcoin system for tickets booking
- Educational Purpose – Bitpay, a payment processor is used for paying tuition and other fees
- Buying a House – House available for sale can be purchased through bitcoin system
- Assuring that donations given have reached the rightful beneficiaries – Concerns of donors regarding proper reach of their donations to the intended person/organization can be guaranteed
Thiel’s Founders Fund Buying Bitcoin From 2012
From 2012 until now, Thiel, the boss of Founders Fund has purchased around $20 million value of stocks of Bitcoin. Although the current value of those shares runs to many hundreds of millions of dollars, Founders Fund has not paid any dividend to its investors. The person who shared this information wished to conceal his identity. He mentioned that the news of investments by Founders Fund is not yet placed in the public domain.
The same behavioural approach of Thiel’s Founders Fund towards bitcoin space, like various venture capital companies is specifiable. Notably, some investors like Draper Associates are extending support for blockchain technology but do not purchase bitcoin.
High discomfort is expressed by partners of venture capital firms, during the partner meetings conducted at the places of some venture capital firms. Discussion on the topic of the performance gap, existing between Bitcoin-related startups and bitcoin as a currency, really disturbs them.
According to the spokesperson of Founders Fund, “our company has to invest in various bitcoin infrastructure companies such as BitGo, BitPay, Metastable and Polychain”. However, nothing was revealed about the company’s investments in Bitcoin.