Peter Thiel on Bitcoin

Some very interesting comments from Peter Thiel, co-founder of PayPal, on Bitcoin.

This morning on CNBC he said that  recently announced plan to split PayPal from eBay, "makes sense for them to naturally spin it out again and for PayPal to focus 100 percent on payments,"

But, he then expressed doubts regarding Bitcoin's role as a payment system.

"I think it's worked on the level of a currency, where it's a speculation on the level of a currency, but it's not yet worked on the level of a payments system, and you need to get the payments system to work, not just for illegal payments but for legal payments."

I really see it difficult for Bitcoin to emerge as a payment system against PayPal and such other players has Twitter, which appears to be making a move in the sector (SEE:Twitter Users in France Can Now Tweet Money).

The money transfer sector is going to show spectacular advances in coming years, but it is extremely unlikely that Bitcoin will be an important player. The sector is going to be very crowded and outfits like Twitter (and PayPal) have built in audiences that Bitcoin comes nowhere near matching.