Frank Thelen owns Bitcoin and Ether
Tech investor sees no threat to Ethereum’s dominance
Bitcoin is “the preferred store of value” – risk-reward ratio very positive
Frank Thelen is an entrepreneur, investor and author known for investing primarily in technology startups. However, he is also invested in cryptocurrencies. He owns Bitcoin, the oldest and largest cryptocurrency by market cap, as well as Ether, whose underlying open-source decentralized blockchain system enables the creation and execution of smart contracts and decentralized applications.
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“Ethereum supremacy not threatened”
In an interview with the Handelszeitung, Frank Thelen explains, when asked how dangerous blockchains like Solana or Cardano, which are “already traded as the better Ethereum”, can really become for the popular open source platform, that he and his team have developed their own model with which they can keep an eye on exactly these things. “We take a close look at where the developers are or how many assets are in administration on the individual platforms,” says Thelen. Although it is a dynamic field and he cannot go on vacation for five years and be sure that Ethereum will still be the winner when he returns, Thelen does not currently see the dominance of Ethereum in jeopardy.
Bitcoin – “the preferred store of value”
With Bitcoin, the tech investor is already safer. “In all likelihood, this will remain the store of value, i.e. the preferred store of value,” Thelen told the Handelszeitung. Frank Thelen can therefore “in no way understand” the current Bitcoin price. While astronomical price targets are being issued for Bitcoin on the market – Cathie Woods ARK Invest predicted in the “Big Ideas 2022” report that appeared at the end of January, for example that Bitcoin could break the one million dollar mark by 2030 – sees this Thelen initially sees the $100,000 mark as the next step, but he considers the current price to be too low and so he expects a significant increase in value as early as this year.
In the interview, Thelen justified this assessment by saying that, in his opinion, it was crucial how the ecosystem developed. “Bitcoin is similar to gold or the euro, you trust this currency. You have faith that this store of value is solid,” says Thelen. The function as a store of value works when many are there, many believe in it and proof is provided that this store of value can also survive crises – and Thelen finally found answers to some of these questions, he explains in an interview.
Survived the Bitcoin ban without any problems
An example of this is China’s mining ban. Over the past year, China has turned its back on cryptocurrencies. The People’s Bank of China has outlawed all cryptocurrency-related transactions and has also banned foreign online services that allow Chinese people to access digital currencies. According to Thelen, the hash rate, as the speed at which new Bitcoins are mined, recovered after just three months and is now higher than ever before. “So Bitcoin survived this ban without any problems,” says the Handelszeitung about the former “DHDL” jurors. In addition, Bitcoin has become legal tender not only in El Salvador, but also in other places, and Rio de Janeiro wants to invest 1 percent of the city’s wealth in Bitcoin. “That’s an announcement. Against this background, I would expect a different price for Bitcoin,” says Thelen.
Opportunity-risk ratio very positive
Even if, according to Thelen, there are “a lot of risks in the crypto world that few people talk about” and “a very high correlation with other risk assets” has been seen in the past few weeks, it is ultimately about an opportunity Risk ratio that needs to be weighed up. “And we currently see this very positively,” says Thelen. “Sure, we have risky investments in China and crypto in the portfolio. But we believe that both segments have the potential to multiply,” the tech investor is confident.
Editorial office finanzen.net
Image sources: Wit Olszewski / Shutterstock.com, Frank Thelen