Venture Capital Bets Big on Bitcoin

coinbase12 Dec 2013 / NYT – Silicon Valley’s bets on the digital currency Bitcoin keep getting bigger.

A San Francisco company, Coinbase, announced on Thursday that it had raised $25 million from some prominent venture capitalists in the largest-ever fund-raising round for a Bitcoin company.

Since its founding a little over a year ago, Coinbase has developed a reputation as one of the most reliable players in the often chaotic world of virtual currencies.

The company enables merchants to accept digital money for ordinary purchases, and allows customers to trade Bitcoins and hold them in online wallets. Coinbase hosts 600,000 online wallets, up from 200,000 in August.

The investors behind Coinbase include some of the biggest names in venture capital, like Union Square Ventures and Andreessen Horowitz , which is investing in Coinbase for the first time in the current series B round.

Chris Dixon, a partner at Andreessen Horowitz, is joining the Coinbase board. He used the announcement to extol the possibilities of Bitcoin…… Read more

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