Marc Andreessen, co-founder and general partner of Andreessen Horowitz, in a recent interview, made the case for cryptocurrencies and blockchain as the most significant innovation in the tech industry.
Andreessen emphasized that the question of the advisability of investing in crypto startups has already disappeared. The company now looks forward to the adoption of digital assets globally.
Note that the benefits of cryptocurrencies are recognized not only by investors. For example, on the eve of the prospect of using digital assets on a national scale, representatives of Bank of America commented. They touched upon the issue of recognizing BTC as a national legal tender in El Salvador.
According to the bank’s analysts , the massive interest of citizens in digital currency will have a good effect on the state’s GDP. Since remittances account for 24 percent of this figure, saving on the cost of making transfers will free up excess funds and use them to their advantage. Nevertheless, sometimes commissions for ordinary transactions using banks or payment services reach 10 percent of the transfer amount, while Bitcoin has more democratic requirements.
We checked the actual data: yesterday the average cost of a BTC transaction was $ 2.43.
Average commission chart in the Bitcoin network
Andreessen Horowitz also believes in the positive side of digital asset promotion.
Why you should contact cryptocurrencies
Here is one of Andreessen’s quotes, in which he shares his attitude to what is happening in the digital asset niche. The replica is provided by Cointelegraph .
We see cryptocurrencies as a technological transformation. There has been a fundamental technological breakthrough. This is a field of computer science called distributed consensus. Money is just one of the uses for this innovation.
Indeed, blockchain and digital assets can be used in different directions. The day before , the creator of Ethereum, Vitalik Buterin, focused on this . According to him, at the moment the Eth network is associated mainly with the niche of decentralized finance, which allows everyone to get access to financial products without any restrictions. However, the benefits of blockchain and cryptography can also be used for other purposes.
For example, Buterin urged developers to activate the direction of authorization using a blockchain address. In fact, we are talking about a regular login in a certain service, as it happens with Facebook or Google accounts, but using an ETH address. And since the latter is protected by cryptography and the uniqueness of the private key, it will be impossible to forge access to your personal account. Read more about how to use a login via an ETH address in a separate article .
Andreessen Horowitz co-founder Marc Andreessen
For a businessman, Bitcoin is primarily one of the most successful implementations of the blockchain concept, and not an asset in itself. The development of BTC has shown how successful trusting relationships can be formed on the Internet, where there is no environment of trust between different parties. The expert continues.
Bitcoin is an internet computer spread across hundreds of thousands of devices around the world. It is a system for conducting transactions that can exist without any centralized authority. In other words, it is a new global financial system.
List of projects in the a16z investment portfolio
All these findings make cryptocurrencies one of the main investment policy focal points of Andreessen Horowitz, also known as a16z. Recall that the company created its cryptocurrency fund back in 2018 and since then has continued to increase its own presence in the arena of investments in new crypto startups. Among the latest news, one can note the attraction of more than $ 2.2 billion for investments in the infrastructure of the crypto market.
We believe this is a clear sign of the presence of big players in the cryptosphere. A few years ago, the arrival of such large professional investors was only a matter of controversy and bold predictions, but now it is a new reality. There is still room for growth in the crypto market and this growth will only accelerate in the future.
Therefore, in this case, it is more dangerous not to get involved with the cryptocurrency niche than to interact with them. At the very least, the actions of top investors hint at just such an approach.
