Is Bitcoin really still worth investing in? Andreesson thinks so
Bitcoin may not be in the strong position it once was, but – as documented in our Bitcoin is Dead feature – the world of cryptocurrencies is still a hotbed of payments innovation. However, web pioneer and Netscape Communications co-founder Marc Andreessen is convinced on a positive outlook for Bitcoin. So much so that he’s actually down for investing more money into the virtual currency.
He’s already made around $50 million in investments in the area through the venture capital firm he co-founded, Andreessen Horowitz. The Palo Alto, California, firm plans to invest hundreds of millions more dollars into the same area – at least, that’s according to The Wall Street Journal.
This feeling is despite of the fact that Mt. Gox has collapsed, “I’m completely unfazed and plan to invest more,” said Andreessen.
Many firms seem to be using Bitcoin as an investment tool, instead of making use of it as a payments channel and currency to trade in; so naturally, avid cryptocurrency users aren’t pleased about a venture capital firm coming onto their territory. It could certainly make the currency’s worth as a method of payment become far less attractive if big businesses sit on a pile of cash.
But there are other reasons to be concerned about Andreessen’s interest in Bitcoin – it could seriously fail.
“For 99% of people, bitcoin doesn’t solve any problem they have,” said New York investment firm Christofferson, Robb & Co’s managing director Bradley Golding when speaking with the WSJ. “Most people are comfortable going to their bank, making a deposit and using a credit card…It’s a solution in search of a problem.”
And that’s quite a true statement to make. After all, the real worth of Bitcoin and it’s cryptic cousins really is found within the code used to create the secure networks. Using them as a payments channel on unto themselves isn’t really where the future lies, so investing so heavily into the space does seem rather strange.
Do you really see cryptocurrencies taking over the payments helm?