Bitcoin jumps as Peter Thiel reportedly amasses 'hundreds of millions'

Bitcoin jumps as Peter Thiel reportedly amasses 'hundreds of millions'

Thiel and the Founders Fund, however, don't appear to share those concerns, and are instead pitching Bitcoin to their investors as "a high-risk, high-reward wager similar to its other venture bets", the report said.

It is a fact that many regulators are now looking at the bitcoin industry pretty seriously and are looking to push through regulations to restrict the trading in bitcoins.

Already, Bitcoin represents the most profitable portion of the recent $1.3 billion Founders' Fund VI.

The investments by Thiel's fund, which WSJ said was between 15 and 20 million dollars, would be worth hundreds of millions today, given the appreciation in the price of bitcoin. Following the publication of the report, the price of bitcoin shot up by about 10 percent in a couple of hours. However, the price fell sharply after it reached an all-time high.

But despite the volatility, Thiel's fund seems to find Bitcoin a more promising bet than its stated objective of investing that money in startups. The Journal says the company claims its investment is now worth hundreds of millions of dollars.

The VC firm confirmed to Bloomberg that bitcoin infrastructure companies such as BitPay, BitGo, Polychain and MetaStable are in the firm's portfolio, but declined to comment on the firm's ownership of bitcoin.

As bitcoin's price rose, trading in the CBOE bitcoin futures was briefly halted in accordance with pre-set rules.

"While I'm skeptical of most [cryptocurrencies], I do think people are a little bit underestimating bitcoin, specifically, because it is like a reserve form of money".

"If bitcoin ends up being the cyber equivalent of gold it has a great potential left", he told reporters at the time.

As some other institutional players begin to divulge some of their year-end positions over the next few weeks, as well as their 2017 returns, it will be interesting to note who else made (or lost) significant money on Bitcoin and its rivals - some of which beat Bitcoin's 1,000%+ rise during 2017. "It's like gold and it's just a store of value".

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