Bitcoin Venture Capital $836m now 21% of Bitcoin Market Cap $3,950m

[bitpump]

Bitcoin Venture Capital now 21% of Bitcoin Market Cap..
Vent Cap: $836 mio & Market Cap: $3,950 mio

It will be only a matter of time before Bitcoin price will increase and rebalance this ratio !



Also, the first quarter of 2015 is already biggest venture capital investment quarter yet!



https://twitter.com/bitpump/status/576850026221191168
https://twitter.com/bitpump/status/576847479162998785

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[LiteCoinGuy]

i knew that but nice charts, thanks for that. 

[TrailingComet]

Thanks for creating the charts
Yes, in time you would expect the market cap to be orders of mag higher than the VC funding raised

[bitpump]

Thanks for creating the charts
Yes, in time you would expect the market cap to be orders of mag higher than the VC funding raised

Fully agree, and with the upcoming reward halving in summer 2016, I would expect a big pump in Sep - Dec this year !

Reward halving expected: 2016-07-29  Source: http://bitcoinclock.com/

[Lauda]

Fully agree, and with the upcoming reward halving in summer 2016, I would expect a big pump in Sep - Dec this year !

Reward halving expected: 2016-07-29  Source: http://bitcoinclock.com/

Well it sure is coming sooner than expected. Last time I checked that, the halving was set for August.
OP, indeed the price has to follow up at some point. I knew that the investments were on the rise, but didn't imagine such numbers. I wonder what the total for 2015 will be.
It seems like a lot of big names are joining the party.

[NUFCrichard]

I had been thinking about that recently, with the increase in investment into a relatively small environment, it is making a mockery of the total value of all bitcoins.

It's good to see all of the numbers in chart form, the DAX trades at about 20-1 PE ratio, so that would be over 16billion or about $1200 per coin if it were the same in bitcoin, I don't think it works like that in reality, but it gives a clue to what the price could and should be.

[Denker]

Fully agree, and with the upcoming reward halving in summer 2016, I would expect a big pump in Sep - Dec this year !

Reward halving expected: 2016-07-29  Source: http://bitcoinclock.com/

Well it sure is coming sooner than expected. Last time I checked that, the halving was set for August.
OP, indeed the price has to follow up at some point. I knew that the investments were on the rise, but didn't imagine such numbers. I wonder what the total for 2015 will be.
It seems like a lot of big names are joining the party.

I believe this year we might see $1 billion of VC injected into Bitcoin's ecosystem.

[Jamie_Boulder]

It always makes me laugh how every single bit of news that's good for bitcoin is somehow transformed into "this means the price will go up!" banter

[chennan]

Fully agree, and with the upcoming reward halving in summer 2016, I would expect a big pump in Sep - Dec this year !

Reward halving expected: 2016-07-29  Source: http://bitcoinclock.com/

Well it sure is coming sooner than expected. Last time I checked that, the halving was set for August.
OP, indeed the price has to follow up at some point. I knew that the investments were on the rise, but didn't imagine such numbers. I wonder what the total for 2015 will be.
It seems like a lot of big names are joining the party.

I believe this year we might see $1 billion of VC injected into Bitcoin's ecosystem.

Many killer apps are on the way! No just the gamble, exchange website, derivatives market etc! Such as side chain, colored coin, smart contracts!

[futureofbitcoin]

I think we need to realize that the VC investments are in crypto companies, not bitcoin. If another coin takes over, it shouldn't be hard for these companies to pivot. Particularly if governments decide to push out their own coin and harshly regulate bitcoin. I think this (among 100000 other reasons) is why most "real" VCs don't invest directly in bitcoin the coin.


By real, I mean reputable ones like Fred Wilson.

[Lauda]

I think we need to realize that the VC investments are in crypto companies, not bitcoin. If another coin takes over, it shouldn't be hard for these companies to pivot. Particularly if governments decide to push out their own coin and harshly regulate bitcoin. I think this (among 100000 other reasons) is why most "real" VCs don't invest directly in bitcoin the coin.


By real, I mean reputable ones like Fred Wilson.

Yeah because investing $836m into unsafe coins is a wise decision. These investments are for the sake of Bitcoin. Altcoins are just a disturbance (only a handful are worth a second look), but there is a smaller market out there for them too.
Since you're pretty much convinced, could you please tell me when was the last time you could buy an altcoin at over 7,000 ATMs (i.e. this is just one example, adoption is much bigger: http://www.coindesk.com/coinplug-enables-bitcoin-buying-at-over-7000-regular-atms/) ?

[QuestionAuthority]

It always makes me laugh how every single bit of news that's good for bitcoin is somehow transformed into "this means the price will go up!" banter

It's wishful thinking mostly. People see an impressive company selling a cool Bitcoin app they think, wow the price is going up. When I see it I think, wow that company is smart, they're going to sell a lot of apps.

[futureofbitcoin]

I think we need to realize that the VC investments are in crypto companies, not bitcoin. If another coin takes over, it shouldn't be hard for these companies to pivot. Particularly if governments decide to push out their own coin and harshly regulate bitcoin. I think this (among 100000 other reasons) is why most "real" VCs don't invest directly in bitcoin the coin.


By real, I mean reputable ones like Fred Wilson.

Yeah because investing $836m into unsafe coins is a wise decision. These investments are for the sake of Bitcoin. Altcoins are just a disturbance (only a handful are worth a second look), but there is a smaller market out there for them too.
Since you're pretty much convinced, could you please tell me when was the last time you could buy an altcoin at over 7,000 ATMs (i.e. this is just one example, adoption is much bigger: http://www.coindesk.com/coinplug-enables-bitcoin-buying-at-over-7000-regular-atms/) ?

Can you tell me what I'm convinced of? Because I don't know. What I do know is, I hope bitcoin succeeds rather than another coin, because as a selfish human being, I hope I made the right choice so I can profit myself.

This is why I think pointing out potential pitfalls in being too bullish is important. I think we should be a little paranoid, even too paranoid to make sure that the one that succeeds absolutely is bitcoin. If, for example, I was able to increase bitcoin's success rate by 0.00001% by talking about possible points of failure, then that's something.

I am not at all ashamed to say that I am in this for potential profit rather than political or ideological belief of a decentralized monetary system. I strongly believe in bitcoin's technology and think that it will succeed, though I don't particularly value decentralization myself. It's like how no matter how much money I have, I will never buy a Louis Vuitton bag, though I can understand that many other people value it. Because of this, I feel that I can offer a different voice, different from the strong ideological/political believers, but also different from the troll-bears. I suspect that most people in the world don't care for decentralization or killing fiat. But sometimes, because of the demographics of this forum, we are led to believe that decentralization, anonymity etc, are so important that people will run to bitcoin once they realize its usefulness. I don't think that will happen.

[Guido]

yes, past year, more and more money been flowing into btc startups and funding
nice to see it in graphs, thanks

I am very bullish on bitcoin right now, always have been, and selected alts will do very well also on the big climb up.
there are hundreds of different fiat currencies in world, far less than from years back, but still is a massive problem with dollar and euro having such a large slice of action

one thing that won't happen is 'just bitcoin'. for the same reason there isn't just the dollar. people don't ever want that, there has to be choice. bitcoin will dominate for foreseeable future but if people think other alts will just go to dust they are mistaken.
i have bitcoin and selected alts that are well run with good communities, great developers
admittedly there are hundreds of crud alts too that I don't touch

[Denker]

I think we need to realize that the VC investments are in crypto companies, not bitcoin. If another coin takes over, it shouldn't be hard for these companies to pivot. Particularly if governments decide to push out their own coin and harshly regulate bitcoin. I think this (among 100000 other reasons) is why most "real" VCs don't invest directly in bitcoin the coin.


By real, I mean reputable ones like Fred Wilson.

Yeah because investing $836m into unsafe coins is a wise decision. These investments are for the sake of Bitcoin. Altcoins are just a disturbance (only a handful are worth a second look), but there is a smaller market out there for them too.
Since you're pretty much convinced, could you please tell me when was the last time you could buy an altcoin at over 7,000 ATMs (i.e. this is just one example, adoption is much bigger: http://www.coindesk.com/coinplug-enables-bitcoin-buying-at-over-7000-regular-atms/) ?

I believe you're right man.
By the way it's worth to watch this the following 6 minutes.Just to back you up. --> https://www.youtube.com/watch?v=9npQ5f74Nr4#t=23m20s