For some, a bear market signals a period in which to avoid getting into cryptocurrencies. For others—namely, Andreessen Horowitz—this is just the right time to throw capital in this direction.
A reputable venture capital firm in California, Andreessen Horowitz just decided to open up a $ 300 million fund that would go into cryptocurrency-related companies. For the next two years or so, the company will put this money into small coins, ICOs, and maybe even Bitcoin and Ethereum, then hold the investments it made for an entire decade.
“We’ve experienced ups and downs in the cryptocurrency market, and expect there will be many more. There’s potential in the technology, and some of the downturns can be the best investments,” said Charles Dixon, general partner at the company.
The fund, according to him, will be an “all-weather” investment that will go into coins without paying attention to current conditions. He said that if Bitcoin experiences the same drop that it did after hitting a mighty sum of $20,000 in December, Andreessen Horowitz will continue to sink money into it.
“There are wild fluctuations in the price, and we see that as an opportunity. We’ve been unphased and investing consistently over time,” he added.
Andreessen Horowitz appears to believe that the Bitcoin market is still in its early phase, meaning that there’s still room for plenty of growth as far as this particular cryptocurrency is concerned.
Other companies that decided to take the plunge were greatly rewarded in April, as the entire market experienced a minor renaissance, leading funds to post returns in double-digit percentages.
Charles Hoskinson, an Ethereum co-founder, made the prediction that large amounts of capital would enter Bitcoin after “the next wave of regulation.” This may be happening as we speak, with large funds investing in the space after the SEC ruled that Bitcoin and Ethereum wouldn’t be considered securities.