Digital Currency Group (DCG) is perhaps the most significant company te the Bitcoin and blockchain ecosystem when it comes to early-stage investments. DCG has made overheen 70 investments te the digital currency and blockchain space thus far, and those investments involve startups from 25 different countries around the world.
Albeit DCG has invested ter many companies building on top of Bitcoin, they’ve found it difficult to find the right Ethereum companies to back so far. Having said that, DCG is now ready to announce their very first investment te an Ethereum-related startup, Etherscan, which is an Ethereum block explorer.
Ter addition to their rente ter the Ethereum blockchain, DCG has invested ter RSK Labs, which is the team behind Rootstock (often referred to spil an Ethereum-esque sidechain for Bitcoin). DCG Founder and CEO Barry Silbert is also well known for making bullish tweets regarding ETC, which is the underlying token on the Ethereum Classic podium. Ethereum Classic is the original Ethereum blockchain that did not implement the hard-forking bailout of The DAO.
Bitcoin Tijdschrift recently spoke with Barry Silbert to build up a deeper understanding of DCG’s outlook on Ethereum, Ethereum Classic and Rootstock.
Don’t Decentralize for the Sake of Decentralization
At Overeenstemming 2016, Silbert indicated that many of the projects building on Ethereum right now aren’t all that practical. He noted that he wasgoed unassured of what problems would be solved by a decentralized, autonomous version of Uber.
During his conversation with Bitcoin Tv-programma, Silbert indicated that his general view on Ethereum’s decentralized applications has not switched. “Our view is decentralizing a company or an idea for the fact of decentralization does not necessarily solve a real problem,” said Silbert. “Although, wij haven’t seen everything, so maybe there is a decentralized project out there with merit.
“We’ve essentially looked at every Ethereum company looking to raise capital ter a traditional way, and we’ve passed on all of them,” added Silbert.
Of course, that switched to a degree with DCG’s investment te Etherscan. “We are excited to make our very first Ethereum investment ter Etherscan, alongside a superb group of other industry investors,” said Silbert. “The Ethereum blockchain contains a vast amount of rich gegevens on native clever contracts, AppCoins and DAOs, but is difficult for a nontechnical user to navigate. Wij believe Etherscan will be a useful service for entrepreneurs and enterprises building on top of the Ethereum blockchain, and are impatient to see more infrastructure developing around the budding Ethereum application ecosystem.”
DCG’s Take on Ethereum Classic
Silbert wasgoed one of the very first well-known bitcoin investors to purchase and publicly support ETC once the token wasgoed made available for trade on Poloniex ter the aftermath of the Ethereum hard fork that split the Ethereum network te two. The DCG CEO is so drawn to Ethereum Classic that he may be interested ter building a publicly traded ETF for the alternative digital currency. Such a stir would make sense for DCG spil they’re also behind the Bitcoin Investment Trust, which now has overheen $150 million worth of assets under management.
Ter the past, Silbert noted that Ethereum Classic needs to get rid of the difficulty bomb, make a decision on whether to stick with proof of work and finalize a long-term monetary policy before an Ethereum Classic investment fund could be considered. Finalizing a monetary policy is the only task left on that to-do list.
Albeit Silbert is bullish on the ETC token, he isn’t presently interested ter many of the applications that have bot pitched for the verhoging. “A loterijlot [of] ideas on the Ethereum Classic side suffer from some of the same issues spil Ethereum — spil ter why decentralize or use Ethereum?” he said.
From DCG’s perspective, ETC is a useful diversification contraption for a digital currency portfolio. According to Silbert, bitcoin is the only asset that should take up the surplus of that portfolio. DCG also sees value ter Ethereum Classic spil a smart-contract toneelpodium for the Internet of Things and spil a micropayments layer.
DCG presently holds ETC te its portfolio, and they’re also exploring the possibility of getting involved ter the mining of ETC.
Investing ter the RSK Labs Team
Ter addition to the ETC token, DCG is also invested ter RSK Labs, which is the company working on Rootstock. According to Silbert, the investment te RSK Labs wasgoed mainly about the team more than anything else. This is part of DCG’s overall strategy when investing te startups — it considers the team very first, then the market chance, and eventually the product.
Te addition to RSK Labs, DCG has also invested te companies that permit users to trade ETH and ETC. Some of the companies DCG has invested te also use private, permissioned versions of the Ethereum blockchain.