Why Billionaire Investor Reid Hoffman Is Betting Big on Bitcoin
J Thoendell stashed this in Cryptocurrency
Reid Hoffman has an expert eye for promising tech startups. The LinkedIn chairman and co-founder's early stakes in Facebook, Airbnb and Dropbox prove he's able to see the next big thing before most of us even know what it is -- and it’s paid off for him time and again.
These days, the so-called “startup whisperer” is placing his bets on Bitcoin. As a full-time partner at venture capital firm Greylock Partners, he claims his primary focus is to invest in “world-class entrepreneurs with new categories of ideas with the possibility of massive scale.” One of those entrepreneurs is Wences Casares, co-founder of Xapo, an ambitious, Palo Alto, Calif.-based Bitcoin wallet and storage startup. With Hoffman leading the charge, Greylock invested $20 million in Xapo last year.
“Bitcoin has the potential to be a massively disruptive technology,” Hoffman wrote in a post announcing the investment last July. “It is the leading digital currency and it’s growing fast.”
My investment philosophy is very much long-term. I don’t do any small trades, like, “Oh, I’ll own this for a year and then I’ll sell it.” I invest only in long-term trends. That’s part of the reason I’m a venture investor. When I invested in Airbnb, when it was totally a new and random thing, most people said, “No way, no one’s gonna’ have strangers over at their house to rent a room, etc.” I saw it differently.
When I invest, I think, “What is the way the world should be and is this investment part of that end? Is this plan the best plan for that to happen?” So that’s minimum five years. When it comes to Bitcoin, that’s the framework that I think about it in.
I'm still never letting a stranger rent a room in my house.
I guess when it comes to Bitcoin he's more interested in the technology than the currency.