Andreessen Horowitz Proceeds to Pour Money into Bitcoin

Andreessen Horowitz (AH) is a name that is usually whispered with awe in the cryptocommunity and not without a reason. Since the beginning of the last year the venture company has threw approximately $50 million into cryptocurrency related products.

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Andreessen Horowitz Proceeds to Pour Money into Bitcoin

Andreessen Horowitz (AH) is a name that is usually whispered with awe in the cryptocommunity and not without a reason. Since the beginning of the last year the venture company has threw (warning, paywall!) approximately $50 million into cryptocurrency related products.

How do they know?

Some may call it reckless, investing so much money into something that volatile and unpredictable. However, I would not worry for Mark Andreessen and the second AH co-founder Ben Horowitz. Looking back at their latest and greatest investments it seems like we shouldn’t stay in doubt but quite the opposite – run to unload our bank accounts to support cryptos.

Let’s turn to facts - AH invested 50 million of US green into Skype in September 2009, when the company was considered a rather risky enterprise to pour one’s money into. That was due to different factors but mostly competition in the face of both Google and Apple; the pressure was so big, that many thought the Skype outlived its purpose and technological novelty.

Well “many” were wrong. In an extensive research committed by AH it was found that the core group of high profile engineers were still fully dedicated to the idea of making future communication system out of Skype. A couple of years later, when Microsoft acquired Skype for $8.5 billion, the AH co-founders could only smile and count the money they earned.

We could continue the list of successful investments of the VC company with some “unknown” firms like Twitter and Zynga, but I guess Skype is a good enough example, why this guys can be believed.

But why the Bitcoin?

Mark Andreessen is very optimistic for a man, who took $50mil and threw them into the belly of the cryptographic beast. And he is just warming up as he in his own words intends to invest “hundreds of millions of additional dollars.

Mark even brags about the fact that they are that supportive of Bitcoin. I see why, though. The story is repeating itself - the Bitcoin is not in high regard in the eyes of community. Still, $25 million into Coinbase, which is growing like crazy as if AH didn’t invested enough.

I don’t know if Mark et. al. are just lucky or a group of telepaths but they do know exactly what they are doing. Maybe we should follow their lead instead of calling forth the end to the very first cryptocurrency?

Links:

·       On Coinbase’s Big December

·       Coinbase Revised Its Policy On Limits And Denominations

·       https://coinbase.com/

·       Zynga Playing Around With Bitcoin

·       Andreessen Horowitz

·       The Wall Street Journal (Paywall ahead) - Web Pioneer Keeps Faith, and Cash, in Bitcoin

 

 

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