Three large venture capital firms Benchmark Capital, Ribbit Capital and Fortress are buying positions into Pantera Bitcoin Partners, reports the N.Y. Times early Wednesday.
Pantera Bitcoin Partners, a San Francisco-based hedge fund operator that buys and sells virtual currencies is a serious trading interest of Dan Morehead, the founder of Pantera Capital, the parent company of Pantera Bitcoin.
‘We’re very excited about the promise of Bitcoin and how it can transform the way we move money,' explains Morehead, ‘The promise and possibilities here are very broad.’ That promise has led him to focus a staff of 16 on the trading of virtual currency and its growth development.
The Pantera Bitcoin fund is worth $147 million according to its regulatory filing in December. Barry Silbert’s New York SecondMarket Bitcoin Investment Trust is $55 million in value.
Michael E. Novogratz, an executive at Fortress has decided to make all Bitcoin purchases through Pantera Bitcoin Partners because, ‘this partnership brings together leading companies with a range of relevant expertise, well positioned to lead and capitalize on a potentially transformative evolution.’
Since the appearance of Bitcoin on the Internet in 2009, Bitcoin has been termed, the 'Wild West’ due to issues of Internet theft and bankruptcy such as the recent filing of Japanese based Mt.Gox. The serious investors with experience and sound business practices see Bitcoin as a future in the world’s alternate currency and paradigm shift of the new 21st century. Goldman Sachs has now issued a report on Bitcoin, at least as an interesting commodity investment into crypto-currency.
As a complimentary investment with a plan, the three new investment firms placed $20 million into the purchase in Xapo, a start-up begun by cyber security expert, Wences Casares, will provide the security of the information needed to unlock Bitcoins in its cold storage vaults where it is protected away from Internet hackers.
Casares compares the integrated system to a ‘safe-deposit box' at your bank and the cold-storage vault will be fully insured by Meridian Insurance.
Bitcoin has come a long way in less than five years and serious investors with vision are making a long-term commitment to the production and trading of Bitcoin around the world. It offers the appeal of a high performance race horse with speed and agility as its virtual currency moves across geographical borders throughout the world with total cost efficiency for investors, traders, merchants and consumers.
To find out more information about Bitcoin view the list below in Author’s suggestions and the video atop this article from the WSJ about the transformation of Bitcoin out of its 'Wild West' image.
Twitter: Victoria Wagner@victoriaross888