Bitcoin Companies Attract Frenzy Of Venture Funding

Bitcoin is becoming such a real and sizable instrument of commerce that investors are now pouring into new ventures aimed at furthering its use, financing new exchanges and payment systems for the virtual currency.

“Almost any [bitcoin] company that’s anything has gotten funding in the last six weeks,” said Michael Terpin, a Las Vegas-based serial entrepreneur who is currently an early-stage venture capitalist in several bitcoin ventures.

On Monday, when BitAngels was formally announced, the group already included 65 investors who collectively pledged to put $6.7 million into bitcoin businesses. By the end of the week, the number of investors had ballooned to 90 and funding had doubled, said David Johnston, the group’s executive director.

“Even the people that were visionary and early are continuing to buy more into it,” Johnston told The Huffington Post. “They’re bullish on the system.”

The mere existence of an investment firm specializing in expanding the financial infrastructure for bitcoin amounts to a remarkable turnaround for the currency; in its three years of existence, bitcoin already has traveled from obscurity to rampant speculation to the prospect of fading away forever.

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