There is no question that some sort of a digital currency will be adopted over the next 10-20 years. With recent publicity, Wall Street derivative market setup and market adaptation, BitCoin has a good chance of becoming that de facto digital currency.  Yet, with wild market fluctuations and no intrinsic value to speak of, how do you make money from BitCoin? 

Famed entrepreneur and tech investor Marc Andreessen might have an answer. According to him….

“Andreessen is betting on the idea that there will be a big infrastructure built around currencies like this,” explains Blodget in the video above. “He’s investing in the service providers around them.” Andreessen is betting that bitcoin “is the Internet in 1993, 1994,” adds Blodget.

I think that’s a very good way to approach Bitcoin. While the currency itself might be highly volatile it will be the service providers that will make most of the money and build multi-billion companies around it. Yet, it’s not without problems. There will only be 1 or 2 winners in the space. To the likes of PayPal. With too many unknowns and uncertainties, it’s anyone’s guess what will work and what will fail.

Plus, most of these companies are in early start up phases, making an investment in them fairly difficult. With that said, it would be a good idea to watch this space and see what pops up.  

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How To Make Money From Bitcoin Google

 

Why Marc Andreessen is betting big on bitcoin

Bitcoin is trading about 55% below its record high and Its biggest exchange is now bankrupt following a multimillion-dollar loss. Does the popular virtual currency have a future?

Marc Andreessen, the founder of Netscape, thinks so. The co-founder and partner of venture capital firm Andreessen Horowitz has invested about $50 million in bitcoin-related companies and plans to invest hundreds of millions of dollars more according to The Wall Street Journal.

Andreessen has invested $25 million in Coinbase, which creates digital wallets, and smaller sums in Ripple, a payment system as well as other bitcoin-related companies, according to The Journal.

“There appears to be some need for a digital currency that crosses borders that anybody in any country at anytime can exchange…with low transaction costs [and] can then be picked up anywhere else in the world,” says The Daily Ticker’s Henry Blodget, about the potential demand for virtual currencies.

But will that change?

Andreessen is betting on it.  He expects more Internet users will use virtual currencies in the future, to transfer digital contracts, signatures and money because the costs will be less than doing the same transactions through banks and credit card companies.

“Andreessen is betting on the idea that there will be a big infrastructure built around currencies like this,” explains Blodget in the video above. “He’s investing in the service providers around them.” Andreessen is betting that bitcoin “is the Internet in 1993, 1994,” adds Blodget.

Blodget says if bitcoin does gets adopted by more people “it probably will become more valuable.” But in the meantime, says Blodget, its price “could go to a penny or a million. It has no intrinsic value whatsoever.”

Even Andreessen acknowledges the price risk. He told the Journal that bitcoin is “weird and scary and nerdy, and full of scams and frauds, just like the Internet was.”