Venture Capital Bets Big on Bitcoin | Hacker News Reader

Venture Capital Bets Big on Bitcoin

dealbook.nytimes.com

38 pointshepha197916 comments

I wonder if any European venture caps will make a similar investment in Bitstamp. Bitstamp is not only the most mature European exchange, but unlike Coinbase (which can only transfer money to and from American bank accounts) people can use Bitstamp worldwide.

This isn't so much a bet on bitcoin as it is a bet on virtual currency. If another currency trumps bitcoin, Coinbase will become the wallet for that. So as a VC, if you buy the digital currency story, this seems like an intuitive investment.

virtual currency ? money as we know it is already a virtual currency made by institution you can sue. Bitcoin is a virtual currency made by a virtual institution no one knows. The only reason you'd like to switch for a new currency is because it is a more trustworthy currency i.e one that reflect more the real economy not one based on some crypto algorithm

How is fiat currency based on the real economy? It isn't. Some bloke at a central bank decides to create more or less money.

How do you think bitcoin works? Instead of the central bank deciding, an algorithm does.

As I understand it, Bitcoin is money, digital money to be exact and it has a payment system, which is the means by which it _may_ become or used as a currency. To say it's a currency at the moment is a bit of a stretch. It's might be an extremely small and niche currency. I think it's important to make this distinction between money and currency.

>> made by institution you can sue

You're prefectly right. Last time I sued HSBC for money laundering and Goldman Sachs for maket manipulation I got a ton of cash and they learnt their lesson. Bringing the FED down to its knees was even easier.

So why doesn't this news produce a spike in the price?

Just like any other market when you read about it in the news, it has already been factored/baked into the price most likely.

Don't present this as a fact please. EM hypothesis is still a hypothesis.

I don't think it relies on any strong version of EM, just about comparative speeds of different information channels. The market's reaction could be wrong, but anyone likely to make big moves likely knew before you.

Probably because the price is already grossly inflated.

Next stage Moody and the like will grant an "AAA" on everything related to bitcoin and the final stage is a worldwide financial disaster.

For one thing, blockchain will never need any bailout, unlike many other ledgers out there.

What is expected to happen when the money supply becomes fixed?

It's already fixed. All the future coins are accounted for in current business calculations.

VC also bet big on pets.com for that matter.....

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