Facebook investor and PayPal (NASDAQ: PYPL) co-founder Peter Thiel is betting on Bitcoin (EXANTE: Bitcoin) because it's "the biggest" of the cryptocurrencies,” CNBC reported.
He explained that Bitcoin has a great chance of becoming a safe haven for investors similar to gold for the digital age.
"I would be long Bitcoin, and neutral to skeptical of just about everything else at this point with a few possible exceptions," Thiel said during a conversation Thursday at the Economic Club of New York.
The PayPal co-founder backed the idea of Bitcoin becoming a store of value instead of a go-to currency for daily transactions.
"It's like bars of gold in a vault that never move, and it's a sort of hedge of sorts against the whole world going falling apart."
While Thiel accepts it is possible for other digital currencies like Ethereum (ETH/USD) to beat Bitcoin, he believes that Bitcoin's appeal is in its size.
"Gold continues to be gold because it's the main asset class," Thiel said. "Maybe it could be replaced by silver but it doesn't seem to be happening."
When asked whether he would buy more if the price continues to drop, the PayPal co-founder explained that he’s a long-term investor, not a day trader.