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What If Peter Thiel's Bitcoin Theory Was Just the Beginning?

Was Peter Thiel right about Bitcoin all along? Explore his theory, investments, and the political shift led by Trump toward Bitcoin legitimacy. Discover what could come next.

Peter Thiel, co-founder of PayPal and Palantir, has long been known for spotting paradigm shifts before they hit the mainstream. Among his most provocative takes in recent years is his early endorsement of Bitcoin. Calling it a “moderately big invention” and later a “pretty big deal,” Thiel once argued that Bitcoin had been systematically underestimated for over a decade.

But what if Thiel’s theory wasn’t just a commentary on Bitcoin’s past — what if it’s a foreshadowing of what’s to come?

Table of Contents

Thiel’s Original Theory: The Smooth Rise No One Noticed

During an August 2024 episode of The Joe Rogan Experience, Thiel reflected on Bitcoin’s unique rise. Unlike typical tech breakthroughs that experience rapid spikes in public attention, Bitcoin climbed gradually over 10-11 years. This slow, steady ascent made it easy for people — especially institutions — to ignore.

“We are in a world where nothing big ever happens, so we have no way of processing it when something pretty big happens,” Thiel remarked.

To Thiel, Bitcoin’s success wasn’t just about price. It was about an emerging monetary system that had matured quietly, outside traditional financial and governmental structures.

A Strategic Investor — And a Profitable One

Thiel's venture firm, Founders Fund, proved his confidence wasn't just talk.

  • In the early 2020s, they earned $1.8 billion from well-timed Bitcoin investments.

  • In 2023, after the market crashed, they reinvested $100 million when Bitcoin dropped below $30,000.

It wasn’t just a bet — it was a signal: Bitcoin still had room to grow. And according to Thiel himself, his only regret was not buying more.

Trump, Politics, and the National Bitcoin Reserve

Fast forward to 2025, and the political landscape is shifting in ways that support Thiel’s long-term view.

Former President Donald Trump — now re-elected — has become one of Bitcoin’s most prominent backers:

  • He praised Bitcoin for relieving pressure on the U.S. dollar.

  • He signed an executive order to create a national Bitcoin reserve, funded by BTC seized by the federal government.

  • Congress passed several crypto-friendly bills, clarifying legal gray areas that once discouraged institutional adoption.

These aren’t just symbolic moves — they’re structural changes that embed Bitcoin into the financial and geopolitical machinery of the U.S.

So… What If Thiel Was Just Getting Started?

If Bitcoin was underestimated for the first decade of its existence, then this next chapter could be even more consequential. Let’s consider a few implications:

1. Bitcoin as a Strategic Reserve Asset

Could other governments follow Trump’s lead? If U.S. holdings legitimize Bitcoin as a reserve asset, central banks around the world may start to accumulate BTC — the same way they do gold. Bitcoin’s finite supply makes it attractive in a world of money printing and inflation.

2. The Institutional Domino Effect

With clearer regulations, Wall Street firms that once hesitated may now pour capital into crypto infrastructure. ETFs, lending, and custody services could surge. The smoother the rails, the faster the money moves.

3. Geopolitical Disruption

If sovereign states begin to hold or transact in Bitcoin, this could challenge the dollar’s global dominance. Thiel has often hinted at crypto’s potential to disrupt entrenched power systems. That moment might be approaching.

The Road Ahead: Inevitable or Overhyped?

Skeptics argue that Bitcoin still faces critical hurdles — environmental concerns, security vulnerabilities, and volatility. But with financial titans like Thiel, political figures like Trump, and regulatory clarity emerging, the foundation for mainstream adoption is no longer theoretical.

Perhaps the real question is no longer “Will Bitcoin succeed?”
But rather, “How far will it go — and who will control it?”

Conclusion

Peter Thiel may have seen Bitcoin’s early potential, but his theory might not be about the past at all. It may be the starting point of a global transformation — where digital assets shift from the fringe into the very heart of politics, finance, and power.

In that case, his belief that Bitcoin was "systematically underestimated" might just scratch the surface.

FAQs

What did Peter Thiel say about Bitcoin?

Peter Thiel called Bitcoin a “moderately big invention” and said it was “systematically underestimated” for over a decade due to its slow and steady rise.

Why is Peter Thiel’s view on Bitcoin important?

As a successful tech investor and PayPal co-founder, Thiel’s insights carry weight. His firm’s billion-dollar Bitcoin investments have proven prescient.

What is the Bitcoin national reserve mentioned in the article?

In 2025, Donald Trump signed an executive order to create a U.S. national Bitcoin reserve using BTC seized by the government, signaling institutional support.

How has Bitcoin’s status changed recently?

Bitcoin is gaining legitimacy through political backing, new legislation, and renewed interest from institutional investors like Thiel’s Founders Fund.

What’s the future of Bitcoin, according to the article?

The article speculates that if Thiel’s theory was just the beginning, Bitcoin may become a strategic reserve asset globally and challenge traditional financial systems.

That's all for today, see ya tomorrow! If you want more, be sure to follow our X (@croxroadnewsco), Instagram (@croxroadnews.co), Youtube (@thebitcoinlibertarian), Tiktok (@croxroadnews) and nostr - [email protected]

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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