Andreessen Horowitz plans $1 bln cryptocurrency VC fund

[fiulpro]

Reality is " People could very easily make profit if they keep holding for a longer period of time without selling in panic" BUT would you trust someone ? Would you trust the market ? Would you trust bitcoins ? Most of the times people think someway or the other some big investor will sell all their holdings and then it will be it.
Which seems true when you see people like Elon Musk in the market. They try and manipulate the market in every possibly way. Using social media and their following negatively. If people see such things happening for real in the market, this decreases the whole trust thing and makes them panic Everytime they see a dip, which might be true to an extent, we never know what the other person is planning.

[paxmao]

Sound quite interesting. The firms buying crypto for now a bit on the margins compared to the stock market. e.g. just one SPAC led by Bill Ackman has got twice as much to spend. Yet still is good news that crypto are seen as an alternative asset for those looking for strong returns and can cope with the extreme volatility of the cryptomarkets. With a long term view, we may be on an era of crypto becoming a trade tool of the big money compared to being a tool for some of the large wealth holders that were more entrepreneurial than average.

I hope this fund is the first of many more to come if the returns drive more people in.

[justdimin]

It seems investment firms are still raising billions in capital to buy BTC and crypto. We may not yet have seen the ceiling.

What is key here is the motive behind it. Will they hold bitcoin as an inflation protected asset. Invest in less known crypto assets in the hope of generating revenue via growth. Is speculation a primary concern. Or are there other reasons.

Whatever the motive, I don't think anyone can deny crypto is exploding atm and everyone wants a piece of the action. Perhaps this will turn into a dream scenario where everyone that plays the crypto game will walk out a winner. Wouldn't that be great. Everyone in crypto wins. No one loses.

I believe this may not be strictly about "buying crypto". I might be wrong on this, but I feel like it could be about investing into crypto infrastructure isn't it? I mean that sounds like it makes sense to me, and there is a good amount of void in that market considering nearly all of USA market is cornered by coinbase and kraken, all the other smaller places are still waiting for their turn.

With a billion dollar fund you could fund like 100 of those places, eventually one of them making money, remember pancake.finance got like a million dollars only and they became pancake as we know it in less than a year, if this fund could find the next one? They could make a ton of money from it. Plus why would they try to raise money to buy crypto? They could simply buy it with whatever they have in their hands without needing any extra money coming in. I am not sure though, I might be wrong.

[davis196]

Perhaps this will turn into a dream scenario where everyone that plays the crypto game will walk out a winner. Wouldn't that be great. Everyone in crypto wins. No one loses.

Nope,this is NOT how financial markets work.Not everyone will win from a crypto price boom.
The financial markets are a voluntary system for wealth redistribution.The profit of one trader is the loss of another.The wealth moves from the hands of the majority into the hands of a minority,which is skilled at trading(or has insider information).This is concentration of capital.That's how capitalism works.
Let's use the BTC market for example.
The newcomers will buy BTC at new ATH,then the price will crash,they will panic and sell way below ATH.
The HODLers/traders,who sell at ATH will make profits and buy cheaper BTC,after the price crashes.
Skilled traders/early adopters win.Newbies/newcomers lose.
There's no way everybody could win in this game.