The first investor in Snapchat explains why the bitcoin rally is just getting started

in bitcoin •  7 years ago 

Article Michelle Castillo on Jeremy Liew:

Uncertainty about governments could make cryptocurrency like bitcoin an even more in-demand commodity, said Lightspeed Venture Partners partner Jeremy Liew.

"Bitcoin and the other digital currencies, they all really see a lot of benefit in times of political and economic instability," Liew said to CNBC. "Fundamentally when a citizen doesn't have faith in their currency of their country, then they are looking for alternatives, and a digital alternative like bitcoin becomes much more compelling in those circumstances."

Lightspeed co-led the first venture round in Blockchain, a bitcoin wallet, in October 2014. Liew also led the first venture investment in Snap, whose IPO in March turned a $485,000 investment into a stake worth more than $1 billion.

Liew said in parts of the Middle East, Africa, South America and Eastern Europe, concerns over the government being overthrown or persistent long-term currency inflation have been driving bitcoin's increasing valuation. A bitcoin is valued at a little over $2,800 as of Tuesday afternoon, according to Coindesk.

While there are other cryptocurrencies like ethereum, Liew points out it's currently valued at just a fraction of bitcoin's market cap.

"If you're going to be an investor in anything, you want to be where the most trading volume is happening, and right now that's happening in bitcoin," he said.

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why do you gamble it to put $485,000 in a new kind of internet money, you can lose all that money. now did that guy had lots of luck but if the value internet money does get less worth!

Good to know Liew is a fan. But I should point out that today Bitcoin's market cap is $44 billion, and Ethereum's is $31 billion. So its not as far off as the article makes it seem. There are 8 different currencies in the billions as of today.

coinmarketcap.com has the full list.

Now as far as trading volume goes, I'm not sure. I need to look into that.

Thanks for the input, I will follow you.

Thank you, I appreciate it