Behind the interest in Ethereum is the fact that some companies in the crypto-currency industry implement Ethereum as part of their products.
Stephens pointed out that some Blockchain Capital portfolio companies such as Bitfinex, Kraken and BitGo now offer Ethereum services. GoCoin, a company that makes payments in Bitcoin, Litecoin and Dogecoin possible, will also support Ethereum soon.
Many companies accept Bitcoin code
Instead of simply selling chocolate, many companies now have chocolate and vanilla in their Bitcoin code portfolio. According to Demirors, some companies in the DCG portfolio should follow a similar path and build a Bitcoin code infrastructure for service providers in the crypto ecosystem.
“Many of the first companies in this ecosystem are still existing Bitcoin companies. They could use their operational and strategic business capabilities with banks, regulators and other stakeholders to build a robust global network for the exchange, saving and management of ether.
Such arguments were used by the financial sector to illustrate how more block-chain-based technologies could enter the market.
Existing growth Bitcoin code potential
The interviewees have different opinions regarding the growth potential of Bitcoin code start-ups. DCG’s Scher believes that an important cornerstone of their investment strategy is the assumption that Bitcoin is both a safe value and a tool for fast, arbitrary value transfer. According to Scher Ethereum, Bitcoin cannot yet keep up with this.
However, Scher Ethereum sees potential as a platform for smart contracts, identity management and other technology industries. “Startups that build such products and services should consider using Ethereum as a basis in the future. It is easy to use in this context and has wonderful features. In this context, Etherem is a wonderful development for us and the blockchain ecosystem.”
According to Dimorors, the Ethereum community could one day overtake the Bitcoin community in terms of the number of developers. Stephens also sees the budding interest in Ethereum as positive. Ultimately, it is only now that venture capitalists are beginning to analyze the potential for investments in this area.
“It is still too early for final judgements. We have met with a dozen companies, only a handful of which are worth investing in. But that will change.”