If you think Bitcoins have no place in your client’s portfolio, you may want to think again.
Coinbase, a Bitcoin wallet and platform – where transactions between merchants and consumers take place online using the digital currency – has struck a $25-million deal with Silicon Valley-based venture capital firm Andreessen Horowitz, according to the Coinbase Blog. Announced Thursday, the series B funding deal will take place with participation from venture capital firms, Union Square Investors, based in New York, and Ribbit Capital, out of California. The new deal brings the company’s total funds raised to $31 million, according to its website.
Created in 2012, Coinbase currently reports 617,000 consumer wallets, 16,000 merchants and U.S. bank integration. Bitcoin, itself, reports a total market capital of about $10.3 billion, making it the most widely-used alternative currency in the world.
Despite these stats, advisors out of the U.S. have been likening Bitcoins to tech stocks before the dot-come bust in 2000 and the 17-centuy tulip craze in Holland, according to a Wall Street Journal article. Some say its practical value is nil, while others feel the digital currency should face a government ban. (continued on Page 2)