Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Cloud Computing
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
Why Is This Venture Capitalist Buying $19M in Bitcoins?

Why Is This Venture Capitalist Buying $19M in Bitcoins?
By Michael Liedtke

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

Financier Tim Draper has snapped up nearly 30,000 bitcoins in a recent U.S. government auction and plans to trade them on a platform catering to markets looking for alternatives to their own volatile currencies. Pouring millions into risky investments is something that Draper has been doing in his nearly 30 years in Silicon Valley.
 


Silicon Valley venture capitalist Tim Draper is betting that bitcoins will bring more financial stability to countries with shaky economies, even though the digital currency faces an uncertain future itself.

The financier revealed Wednesday that he snapped up nearly 30,000 bitcoins in a recent U.S. government auction and plans to trade them on a platform catering to markets looking for alternatives to their own volatile currencies.

Unlike most forms of money, bitcoins aren't backed by any government. Bitcoins also provide their owners with anonymity and enable transactions that can be completed over the Internet without the involvement of banks. That has turned bitcoins into a financial vehicle for money laundering and illegal drug sales, too.

The bitcoins that Draper bought were auctioned off after the U.S. government seized them last year in a crackdown on Silk Road, a website that stockpiled the currency while selling illegal drugs.

Draper prevailed over 44 other bidders registered for the auction, according to the U.S. Marshals Service. The price he paid isn't being revealed, but the bitcoins currently have a market value of about $19 million.

Pouring millions into risky investments is something that Draper has been doing in his nearly 30 years as one of the best-known venture capitalists in Silicon Valley.

Enough of Draper's hunches have paid off to enrich him and the people who entrust money with his venture capital firm, Draper Associates, in Menlo Park, California.

The firm's investment portfolio includes an early stake in satellite maker Skybox Imaging, which Google Inc. last month agreed to buy for $500 million.

Draper occasionally also has made a splash in politics. After striking it rich during the dot-com boom of the late 1990s, Draper poured more than $20 million of his own money into an unsuccessful attempt to provide $4,000 for each child in California to attend private schools. This year, he has been pushing a proposal that would divide California into six separate regions, including a region that would be called Silicon Valley.

His latest vision foresees bitcoins helping less-prosperous countries build stronger economies.

"Using Bitcoin could benefit you more than any other currency out there," Draper said Wednesday during a press conference.

In an effort to circulate more bitcoins in the targeted markets, Draper is working with Vaurum, an exchange that is part of his investment portfolio. Vaurum says it already has set up trading systems in several emerging markets where bitcoins have been scarce.
 


© 2014 Associated Press/AP Online under contract with NewsEdge. All rights reserved.
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Cloud Computing
1.   VMware Buys CloudVolumes' V-Apps
2.   Concerto 2200: Dedupe, Compression
3.   Office 365 Tailored for Attorneys
4.   Apple Opens China iCloud Data Center
5.   Samsung Buys SmartThings


advertisement
Concerto 2200: Dedupe, Compression
Firms save money by saving space.
Average Rating:
Samsung Buys SmartThings
To allow people, appliances to interact.
Average Rating:
Cisco Axes 6,000 Employees
Company is facing declining profits.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Mobile Technology Spotlight
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 
Samsung, B&N Target Amazon with Nook Tablet
They've seen the enemy and it is Amazon. So Samsung and Barnes & Noble are teaming up to combat their common foe with a 7-inch tablet that blends Samsung’s tech, Nook’s content and e-reader platform.
 
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.