Where Is All That Bitcoin VC Money Going?

Where Is All That Bitcoin VC Money Going?

Headlines highlight investment in Bitcoin companies seemingly monthly these days. So, where is it going? Into defense fund accounts. That is a large reason why, despite a lot of investment into the space, the community seemingly ebbs.

Evangelists will state that the reason Bitcoin is not growing is because people are not doing a good enough job promoting it, but when you have a consortium like R3 looking into blockchain technology, that’s not the problem.

Instead, the real problem is that much investment into Bitcoin is going into a certain black hole: defense funds. This money sits there until one day the firm faces some sort of legal kerfuffle.

“Messieurs, la Défense.” #droit #tribunal #avocat #law #court #Paris #lawyer

A photo posted by 侯宇軒 (@luminous_basterd) on Dec 23, 2015 at 12:38am PST

Not to mention, 2014 was the year of patent applications, many of which have been published in recent months. So, again, legal work. It costs money to file a patent and it costs money to defend a patent lawsuit.

There’s been approximately $1 billion put into the space, into all sorts of firms. But it costs millions of dollars to operate many Bitcoin businesses in the US in line with

Read more ... source: TheBitcoinNews

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