The Case for Bitcoin

Earlier today the New York Times published a piece written by Marc Andreessen (a co-founder of the venture capital firm Andreessen Horowitz) titled "Why Bitcoin Matters".  This article is, in my opinion, the most compelling case that has been made for Bitcoin  thus far.  While many have defended the virtual currency, here is what makes Andreesen's case so compelling:

He has a knack for accurately predicting tech trends:  

He's predicted the rise of social, the cloud and the web browser itself to name a few.  Andreesen introduces his readers to Bitcoin my making the following claim:  

"Eventually mainstream products, companies and industries emerge to commercialize it; its effects become profound; and later, many people wonder why its powerful promise wasn’t more obvious from the start.  What technology am I talking about? Personal computers in 1975, the Internet in 1993, and – I believe – Bitcoin in 2014."

Because he isn't the type to make grandiose statements often, when he does he should be taken seriously.

He puts his money where his mouth is:

Andreesen Horowitz has invested over $50 million in Bitcoin related companies so far (including $25 million in Coinbase alone).

He sees Bitcoin as more than just a digital currency:

When most people defend or denounce Bitcoin they focus solely on its application as a digital currency.  Andreesen goes beyond that and focuses on its potential as a secure method of transfer for digital and physical goods.

"...Bitcoin gives us, for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.

What kinds of digital property might be transferred in this way? Think about digital signatures, digital contracts, digital keys (to physical locks, or to online lockers), digital ownership of physical assets such as cars and houses, digital stocks and bonds … and digital money."