This article discusses the growing interest in Bitcoin among venture capitalists (VCs) despite its volatility and risks. Several VCs are cited as being interested in Bitcoin, including Andreessen Horowitz’s Chris Dixon, who notes that while modern cryptography is based on assumptions that could go away tomorrow, Bitcoin has been battle-tested.
The article also highlights concerns around the security of Bitcoin, with some experts warning that an ecosystem of trusted third-party wallets, banks, and exchanges would undermine the currency’s original peer-to-peer design. However, others argue that this is not a concern, as the core Bitcoin protocol has not been compromised.
Other key points from the article include:
- The estimated daily trading volume of Bitcoin is $31.1 million, which is infinitesimally small compared to the global currency trade market.
- Some VCs are interested in investing in companies that provide trusted third-party services for Bitcoin, such as wallets and exchanges.
- The growth of Bitcoin’s ecosystem has led some to question whether it still aligns with the original vision of its creator, Satoshi Nakamoto.
Overall, the article suggests that while there are risks associated with investing in Bitcoin, many VCs see potential value in the currency and are willing to take on those risks.
