Seven years after its invention, Bitcoin still isn’t mainstream. However, more people in the established finance sector have given it a vote of confidence than ever before, as indicated in Bitcoin start-up Coinbase’s latest funding round.
Coinbase, which markets itself as a beginner-friendly Bitcoin “wallet,” or online storage repository, has received a nod from the financial sector in the form of generous investments in its $75 million funding round. The New York Stock Exchange, the financial services firm USAA and the Spanish bank BBVA were among Coinbase’s new investors. Former Citigroup CEO Vikram Pandit and former Thomson Reuters CEO Tom Glocer also made investments.
The value of a single Bitcoin has fallen drastically in the last twelve months, which has had the silver lining of encouraging people to spend their hoards and stimulate the Bitcoin economy. Trade, transaction, and venture capital investments have all increased.
Bitcoin differs from other currencies in that it can be “mined” by computers and its digital status pseudonymously protects spenders’ privacy. It may not be as stable as the dollar, but financial giants think it has something to offer.
Photo by Antana