Bitcoin Forum

deep pockets ante portas.



http://www.forbes.com/sites/kashmirhill/2013/10/31/the-biggest-bitcoin-investment-so-far-circle-raises-9-million/

Its fairly clear that some deep pockets like Bitcoin but know that if they dumped all that money straight into Bitcoin it would cause  a problem, so they invest in these businesses instead. There's not even enough coins on Gox to finance a $9M buy at once. Combining Gox and Bitstamp, a $9M buy would take us to about $300 even if you spread it across Bitstamp & Gox. So if Circle can even generate 30,000 BTC, its still "worth it", especially when you consider that those Bitcoins are probably going to be worth more if Circle is successful. Assuming Bitcoin takes off, and we start seeing huge volumes, its very reasonable that the 30,000 BTC target is obtainable.

I highly doubt that bitcoin ventures in general would surpass Bitcoin's value appreciation. Yes, it is important to grab market share of the services, and power and monopoly positions etc. But so far an average Bitcoin stock portfolio is down.

To an entity of every size, I would suggest first to start a relentless coin purchase program, and then think about bitcoin companies, services and investments.

These people already have $100s of millions. They want to build things.

I don't know the details of the online product suite they are developing, but helping with stream lining bitcoin purchases seems a "before its time" service given that the general public has a hard time even getting their hands on bitcoin.  

Erasing the 2%-5% merchant fee "taxation" is a great cause I think that is something the world needs. But I don't know how an online suite of products is going to really tackle that problem until consumers have a REASON to use bitcoin. Right now consumers have no reason to use bitcoin.

We need more companies that can get bitcoins in people's hands. That is step #1. I SUPPOSE if Circle wants to encourage companies to incentivize Bitcoin, that could help the process, but Bitcoins have to become easily accessible. Like really really easily accessible. And, sorry, Coinbase doesnt qualify.

EDIT: if they want to compete with Paypal and Western Union however with money transfer peer to peer, that might be a more "ready now" suite of products. However, someone still needs to get bitcoin into people's hands.

Coinbase is already easier than WU and MG and is about the same ease of use of PayPal except I'm less afraid of my funds being seized.

This cannot be over-stated. Yes rich people want to accumulate more wealth, but find me a very wealthy person who still works regularly and I'll show you someone who is working to be challenged, not to get even richer.

This is more massively bullish news, should be a fun period to come.  ;)