– Listen up, 'cause we're gonna show you how to become a better investor. ^- [Voiceover] This is The Billion Dollar Startup Series. ^Your host, the Angel King. ^- [Voiceover] Okay, Ross, so today let's talk about ^Bitcoin and the Blockchain technology. ^Can you tell us a little bit more about this technology? ^- So Bitcoin has sort of one of these ^ideas that have been surrounded in mystery, ^the enigma wrapped in an enigma. ^Bitcoin is an ability or ^it provides a way in which anyone around the world can ^transact with one another, they can ^send money, they can receive money, ^without going through a traditional ^middle man, which is the bank, right? ^- [Voiceover] So it's like invisible currency? ^- It is, it's virtual currency, virtual currency's been around for a long, long time but Bitcoin is one of the most popular ways in which virtual currency has taken off and underneath Bitcoin is what's called the Blockchain.
So every time a miner goes and gets Bitcoin or this long string of letters and numerical and alphabetic letters they then have currency, okay? That currency and that particular Blockchain is now changing the way that the financial services industry is looking at making transactions faster, smarter and removing the barriers for average consumers. So I know this technology through a company called Coinbase which has literally taken off, they've received millions of dollars of investments from Andreessen and many other venture capital companies out there, as well as some of the traditional players on Wall Street, and I learned about the Blockchain technology through Coinbase, I said, "Well, I like their website, I like this concept "that you can save money and you can also "not have to worry about having that middle man, the bank "take a percent every time a transaction takes place." So I learned about it through Coinbase and then I started to explore the underlying technology.
What I found was a technology, this Blockchain, could potentially change the way that third world countries transact, whether you're in Africa or in India, anywhere around the world that you're able to send and receive money in a new way and so it was through Coinbase that I originally discovered them. – [Voiceover] So since it's changing the way we deal with currency, do you think that they'll be around 20 years from now? – Well, people attack Bitcoin all the time, I've been a skeptic myself. I don't use it for most of my transactions, I've used it here and there, with all candor, but I think some version, I don't think Bitcoin will be around, I don't see it being the primary currency 20 years from now.
I'll get a lot of flak for that but that's what I believe. I believe Blockchain, which is the technology underneath it, will be around. So that's why we rank them on our website, angelkings.com, we ranked these startups, the financial services startups, we ranked the technology, not just another company like Coinbase, I don't think Coinbase will be around 20 years from now. That's why I wouldn't have invested in it, I think the valuation for it is way, way too high, but Blockchain will be and it's on our website as one of our top financial services startups. – [Voiceover] And so then how are they going to build a community around the technology instead of the Bitcoin since there's so much skepticism there? – That's a hard play. I mean, if you go to a venture capital group like ourselves at Angel Kings and you say, "I've got another Bitcoin "app or clone of another clone" I've been pitched many, many times, my first idea is skepticism.
"Step away, I'm not interested." But if you say, "I'm building something on top "of the underlying currency "of Blockchain." Then I get excited 'cause that's where the next 20-30 years are going to evolve. – [Voiceover] So then, their timing, do you think they came in too soon with such a new technology? – No, I think the developers have stopped mining and now just develop toward Blockchain technology. I believe there's a company, Block Eye, that a friend of mine has invested in and it's more about the Blockchain now than just a brand of Bitcoin, Bitcoin has been a little bit nebulous, as well as shaded by a lot of the bad transaction with the marketplaces that we've seen recently in the news, ^but the Blockchain will preserve ^and will be a big thing 20 years from now. ^The strategy is that if one company ^brilliantly takes over Blockchain, ^they could turn into a multi-billion dollar ^company themselves.
^Yeah, I mean, look, I hope that helps. ^When you're looking for the next billion dollar startups ^you can check out our website, angelkings.com, ^learn more and use our formula ^to make your investments in startups. ^- If you've got more questions, ^visit angelkings.com..