Cryptocurrencies pose a threat to venture funds and Bitcoin may become a new global currency
Bitcoin may become a new global currency and crowdsales pose a serious danger to venture capital sector. It was stated by the major investor, former COO of PayPal, and founder of Yammer David Sacks.
In the interview for CNBC, Sacks told that thanks to cryptocurrency every asset, means of ownership, and mechanism of payments were getting more and more efficient. He highlighted that Bitcoin was implementing PayPal’s plans to create a single global currency. The company introduced interest and debit cards for users to have a possibility to store funds in the system instead of withdrawing them to bank accounts. Further, eBay purchased PayPal and its attempts to become a centralized depositary ended. The company’s vision of the financial operations of the future has been fulfilled by cryptocurrencies. However, unlike PayPal, the system for electronic money transactions is decentralized. And that is its main advantage.
According to the expert, the world has faced a fundamental change, which has gone unnoticed by many people. The point is that money can be coded now. That is a huge benefit for the world economy.
Most citizens in the USA underestimate Bitcoin, as the US dollar is a stable currency. In countries, where financial institutions cannot boast such sustainability, cryptocurrencies represent a new way to secure the capital.
One of the important theses of the interview with Sacks was about raising funds through ICOs as a direct threat to venture funds. Whereas earlier startups were using money provided by funds, now they raise money via crowdsales. Moreover, terms of crypto capital are much more beneficial than venture investments.