BILLIONAIRE CRYPTO 💰💰
Crypto is one of the biggest, if not the most prominent themes in investing this year. Whether you are a believer or non-believer in crypto, it is undeniable that news related to crypto can affect the market, other currencies, and the overall interest of investors. Billionaires have even joined in on the fun, from Elon Musk on Dogecoin to Mark Cuban on NFTs; some billionaires genuinely love the ideas. Even some investment firms are joining in on the fun; the most recent one to do this is Andreessen Horowitz, a private American venture capital firm. As a venture capital firm, the main focus is investing in startups. This is why they have decided to launch a multibillion-dollar fund to invest in crypto-focused startups. More specifically, the fund will consist of $2.2 billion allocated for blockchain and digital asset start-ups.
Banks such as Goldman Sachs have also made a priority to dabble in crypto in recent months as they have aimed to create a crypto derivative for clients to trade. The reasoning for the allocation of funds is explained well by the firm: “We believe that the next wave of computing innovation will be driven by crypto”. The firm is all in when it comes to crypto, in fact, they hold major stakes when it comes to companies like OpeanSea and Dapper Labs which were behind the NFT boom. Despite this, some believe the timing and confidence are backed by little as Bitcoin has lost roughly half its value since the high near $60,000 in April.
In fact, it’s on track for a 20% loss this week alone. What do you think about the investment fund? And do you hope more venture capitalists invest in crypto?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.