Venture capital investors have invested in Bitcoin $50 million and lost a pair of socks

In 2014, the Studio Planet Money venture capitalist Ben Horowitz argued about the fate of Bitcoin with financial columnist Felix Salmona.

Ben Horowitz, invested his time in Facebook and Twitter invested $ 50 million in startups related to Bitcoin. He believed that Bitcoin will change the world and will fully conquer the market of online shopping.

Felix salmon, financial blogger and cryptomathic, held the opposite view. He published an essay called “the Bitcoin bubble that will surely burst.” Horowitz wrote a commentary to the essay in which the author proposed to make a bet on the future of Bitcoin.

The two forces met in the Studio of Planet Money (NPR) and made a bet of five years. The confidence of Ben Horowitz was based on the understanding that Bitcoin is a major technological achievement, due to which people will be cheaper and easier to buy and sell things through the Internet.

According to Ben, how do I shop on the Internet — basically, using credit and debit cards — is a problem for many enterprises whose business is based on such sales. First, enterprises have to pay the companies making the credit card a Commission of about 2.5% of everything they sell. For some companies it very much. In addition, according to Ben, the company issuing credit cards deny some law-abiding customers because they are considered potential fraud.

Felix was skeptical about the success of Bitcoin. In particular, he was troubled by the fact that the number of bitcoins is limited. And it should mean that over time Bitcoin will become more valuable. In other words, deflation is inevitable. The rising price of Bitcoin will make it inconvenient for shopping on the Internet.

Ben and Felix agreed to meet after the survey, which will give Planet Money an independent company to find out whether the Americans Bitcoin for online purchases. If more than 10% of respondents answered in the affirmative — Ben will win, otherwise the winner will be Felix. The stakes in this dispute have become socks from Alpaca wool, which in 2014 could be bought for bitcoins.

Planet Money recently announced the winner. According to the results of an independent survey among 900 Americans, only 3% of respondents have used the cryptocurrency for payment of online purchases in the last month. Felix salmon won the dispute and a pair of lovely socks.

The post Venture capital investors have invested in Bitcoin $ 50 million and lost a pair of socks appeared first on FineCrypto.

FineCrypto

Venture capital investment into blockchain startups increased by 280%

Cryptocurrency market is on the decline, largely due to problems with the regulation, but many of the ICO projects are not experiencing funding problems due to the influx of venture capital investment.

In its latest report, the research team Blockchain Diar reports that for the first three quarters of cryptocurrency and blockchain startups raised nearly 3.9 billion dollars with venture capital investors, representing a 280% increase compared with the 2017 year.

Along with the increase in the number of transactions with venture capital investors in the cryptocurrency sector, the average size of investment in cryptocurrency and blockchain projects increased by more than $ 1 million in 2018.

Black denotes investment capital, grey – number of transactions in the cryptocurrency sector.

Explaining the growing popularity of venture investment among ICO, the authors of the study cite cost reduction projects, as well as the fact that the prices of almost all tokens are far from their highs.

The research company also refers to the regulation of and problems with by the ICO as additional reasons for the popularity of crowdfunding.

The post Venture capital investment into blockchain startups increased by 280% appeared first on FineCrypto.

FineCrypto