"People should be interested in the companies, not in the bitcoin itself, bitcoin could be the winner, but also sink," says Glenn Hutchins.
Although the oscillations in the price of bitcoin caught the attention of the financial sector in 2017, for Glenn Hutchins, one of the people who has ventured into the world of cryptocurrencies, it is simply noise that diverts attention from more important things than they are happening Hutchins, co-founder of Silver Lake Partners, a venture capital group focused on the technology sector, is more interested in the ecosystem of cryptocurrencies as a whole than the fact that the price of bitcoin beat record prices.
In fact, although he has invested some 5 million dollars in companies in the cryptocurrency sector and plans to invest more, he recognizes that he has not bought a bitcoin. "People should be interested in the companies, not in the bitcoin itself, bitcoin could be the winner, but also sink," Hutchins said in an interview with the Financial Times.
Hutchins is not the biggest investor or the first in digital currencies. The Winklevoss twins have won billions of dollars with bitcoin, at least on paper; Michael Novogratz, a former hedge fund manager at Fortress, is a strong supporter of the currency. But Hutchins is possibly the best-known figure: he is a member of the boards of the Federal Reserve Bank of New York, the Brookings Institution, the Economic Club of New York, the Center for American Progress, the Council on Foreign Relations of the United States. , of AT & T and, until this summer, of the Nasdaq. He was also an adviser to Bill Clinton.
Hutchins points out that this ecosystem can, in theory, facilitate financial transactions instantaneously and free of charge: "It is a great opportunity because the two most important things are business information and value, we can now transmit information around the world at the speed of light at no cost, why can not we do that with value in the future? "
His first foray into the cryptocurrency sector was in early 2016, when he invested in the venture capital firm Digital Currency Group (DCG), which has invested in 110 digital coin companies. Hutchins, who is part of DCG's board, has invested in approximately 10, such as Ripple, Abra, Chain and Circle: "I want to create companies, not speculate with currencies, if the sector takes off, one of these companies will be like Google, Amazon and another like Yahoo ", predicts.
Advocates argue that bitcoin and other digital currencies are the greatest technological advance since the invention of the internet. However, there are aspects that remind the boom of the companies dot.com. Simply the fact that a company has the word "blockchain" in its name causes its action to skyrocket, even if there is little evidence of tangible progress. And due to the volatility of the bitcoin price, it is practically useless as a traditional means of exchange or storage of value, the two traditional indicators of a currency, according to critics.
"It could be a bubble, but the companies I have invested in are very serious companies that are doing very important things, and if they do it well, they have the opportunity to change the way we make payments around the world," Hutchins concludes.
Sources: Coinsdesk
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the winners of the future are cryptocurrencies with added value such as ether or gnome. i think so :)
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