Investor Terrence Yang Gives a Much-Needed Reality Check to Bitcoin Startups

Bitcoin startups have raised over $1 billion in 2015, but it’s obvious that not all of these new companies are going to succeed. Up to this point, most of the investment money has gone to exchanges, wallet providers, and payment processors, and it’s becoming clear that more investment needs to go into novel use cases that illustrate why this technology was created in the first place. At a recent BitPanel Meetup in San Mateo, California, Yang Ventures Founder Terrence Yang let it be known that Bitcoin startups need to provide real use cases for the blockchain-based technology if they want to stand the test of time.

Bitcoin Companies Need Customers

One of the main criticisms of Bitcoin startups in general is that it’s hard to find one that is turning a profit. While there are definitely a number of different Bitcoin-related companies that have become profitable over the past few years, they don’t tend to be the traditional types of businesses that investors seek out. For example, Silk Road was extremely profitable for the site’s creator, Ross Ulbricht, during its few years of existence. SatoshiDice, a bitcoin-based gambling website originally founded by Bitcoin Entrepreneur Read more ... source: TheBitcoinNews