6 ms·
The VC's are looking to invest in people selling shovels, not panning for gold/speculating on price. They've built cryptocurrencies' naturally high volatility
by SkyMarshal 13y ago
The VC's are looking to invest in people selling shovels, not panning for gold/speculating on price. They've built cryptocurrencies' naturally high volatility into their expectations, and are looking for ROI on service fees.
- oleganza 13y agoIf you invest assuming you'll sell 100000 shovels next year and gold rush is over tomorrow, you lost a lot of money. Selling shovels during the gold rush is not something much safer than drilling for gold itself. It is safer, but not a 100% certain business.