Another reason for a sustainable rally

[bitebits]

Silicon Valley VCs finally figured out the difference between Internet/Internet companies situation vs Bitcoin/bitcoin companies situation.
I find the following writing pretty remarkable:
https://www.usv.com/blog/fat-protocols

Basically, the author predicts that there is more value in bitcoin protocol/token than in companies derived from it, hence VCs are re-orienting themselves to invest DIRECTLY in tokens AND protocol, first and foremost, rather than derivative companies. First couple of funds already formed.
Hence, they will invest large sums in Bitcoin itself, resulting in bitcoin price rally that would be sustainable.

Thanks for sharing the blog post. Interesting insight and a 180 degree turn compared to the 'classic' investing in the web.



versus

[Biodom]

yeah, the central point is that you get most benefits by just investing in protocol/tokens vs the rest of the internet, where investment in services (Google, Facebook, Amazon) was the most lucrative.
the good news for us is the following: there are no inside deals on buying bitcoin vs at least Google and facebook where they started publicly trading at about 40bil and 116 bil, respectively. Most appreciation percentage wise was, of course, between a few mil and 40-116bil, NOT after they become public.
https://techcrunch.com/2011/01/10/facebook-5/

Peter Thiel invested $500 K and got 3% of the Facebook, which is about $10bil now (he probably sold some or most after the IPO).

[uki]

That is all talk and useless analysis as we have seen in the past. When Bitcoin's price rises we all see the "geniuses" writing anything to join the hype and the bandwagon. When the price drops, those "geniuses" will also be the first ones to write all the negative articles and blogs. Like gold, all of Bitcoin's value leans towards speculative value.

I agree that there is a rally but it is never sustainable. You should be aware that the margin trades made in Bitcoin is at the highest in the history of Bitcoin trading. That is not sustainable but it could last a long time.

That is also my point. Lots of empty talks, don't bring support in the hard time. They are just empty promises that worth absolutely nothing when it comes to correction. And my guess is that the correction should be behind the corner, as the technical indicators indicate.

[adidas]

This rally is not going to subside any time soon. So it is best just to ride the wave into the Christmas holidays and into the New Year!

[alyssa85]

I think majority of VCs already have realized this that the bitcoin based companies can't return more than what they could have generated by investing in bitcoin or by buying bitcoin on early days.

Profit from bitcoin related business is only fractional compared to what they could have earned by directly buying bitcoin when price was around $100 per coin rather than investing in bitcoin startups during those time.

Do we have any proper data about whether the bitcoin based companies have actually made any profits? Investing in bitcoin companies seemed to be a big thing in 2014/15, but then news of new investments seemed to disappear.

[BTCtrader71]

Like gold, all of Bitcoin's value leans towards speculative value.

(emphasis mine)

I'd say most, but certainly not all. In a selected (but ever widening set of) circumstances, Bitcoin is the best and sometimes the only payment system available. People in Venezuela are using it to buy toothpaste and cancer medications.