Why VCs Are Still Planning To Pour Tons Of Money Into Bitcoin

virtualcurencybitcoin09 Apr 2014 / Business Insider – It seems like not much has been going right in Bitcoin land these days.

Despite the hopes of evangelists that the fall of MtGox would mean the end of persistent headaches in the cryptocurrency’s ecosystem, there has been a spate of new theft and fraud accusations. The most recent has emerged at Neo and Bee, a Cyprus-based organization thought to have opened the world’s first Bitcoin bank branch. Cypriot authorities are now investigating claims that at least $48,000 have gone missing.

Meanwhile Wall Street analysts have expressed doubt about the potential for Bitcoin as a viable currency, though suggested its underlying technology could prove useful.  Analysts at Goldman Sachs recently knocked down some of the key assumptions about why people should start using Bitcoin. Then UBS did mostly the same thing. And Warren Buffett has said the notion the digital currency has long-term potential is “a mirage.”

As a result of all this, Bitcoin prices have fallen about 30% since the initial Gox price hit, and volatility has surged.

And yet…… Read more



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