In a note to clients, Colas highlights the merits of Bitcoin for venture capitalists, comparing it to tech success stories like Amazon and Netflix:
Those thousands of tech-savvy folks who run the bitcoin system have created a new and very low cost method for transferring money around the world. For the potential 25 bitcoin reward of solving one of those 10 minute puzzles, they keep track of all the transactions created by users around the world.
The current system for money transfers – banks, brokers and other financial institutions – want a lot more for their efforts than a few thousand dollars six times an hour. Bitcoin is to money what Amazon is to retail or Netflix is to video content – a much more efficient way to meet the needs of millions of people around the world.Colas goes on to say that there are two major issues to overcome. The first is security, which undermines confidence, and the second is anonymity, which attracts government interest. He doesn't see either as insurmountable, although they have to faced and dealt with for Bitcoin to be economically viable as an investment.
Business Insider
Here's Why Venture Capitalists Want To Make Bitcoin The 'Next Big Thing'
Matthew Boesler
