Thiel on bitcoin

Peter Thiel, the person in the world who’s thoughts I’m most interested in, has shared some of his latest on a recent podcast episode.

The whole thing was good, and this mini-monologue on bitcoin was great.

Probably the one asset that I most strongly believe in– you know, as an investor, you often want to find things that are so stupid that other investors are embarrassed to invest in them.

And so for example, the FANG stocks were an instance of a stupid asset. The really big tech stocks. Jim Cramer came up with the FANG acronym on Mad Money in 2014 and if you just followed his advice you would have made eight times your money in the last six years. You would have done better than any venture capitalist. It was too stupid, in a way.

My candidate for the investment that is so big and so stupid that professional money managers are embarrassed to do it, because it suggests they’re not doing enough work, is to just buy bitcoin. We have strange monetary experiment– maybe you should be long gold but gold is still the old economy asset, and probably it’s bitcoin more than gold. And nobody’s in that one. So that would be my bullish advice, although maybe it’s also bearish on a lot of stuff implicitly.