With Bitcoin prices skyrocketing at the moment, it appears all online attention has been funneled into Bitcoin, Blockchain and anything related to the two. And for good reason. This revolutionary technology is set to revolutionize the world as we know it, even when it comes to the Venture Capital industry.
SPiCE Venture Capital, a VC firm issuing digital security tokens to its investors using Blockchain technology, was initially brought to my attention by Vicenc Marti, an online gambling professional who has recently moved over to crypto. Marti, who currently serves as the firm’s Venture Partner, passed on the exciting news that due to demand and foresight, SPiCE will be accepting Bitcoin Cash from investors.
To learn more about how SPiCE VC is using Blockchain, why Bitcoin Cash is a popular currency choice for investors and how Blockchain will revolutionize our greater world as we know it, I spoke with Carlos Domingo, Co-Founder and Managing Partner of SPiCE VC.
“For all the types of assets that are very liquid, things like real estate, art, or investments in start-ups or investments in Venture Capital, tokenizing those assets to provide liquidity is a major advantage for investors because it basically eliminates the number one problem of these investments which is the lack of liquidity”, shared Domingo.
“If you’re an investor in a venture capital fund, typically you’ll have to be putting money through a number of years and you won’t get any money back until seven, eight, nine, potentially ten years which makes it not a viable option for a lot of people to invest”, he said.
“By tokenizing and offering tokens which have the liquidity of a secondary market, you’re basically disrupting the way VC funds have been built”, he added.
While SPiCE VC’s platform has been built on the Ethereum Blockchain and Ethereum tokens are issued to their investors, the management team has always wanted to provide choice in investment currencies.
“From the very beginning we wanted to offer a variety of options for people to invest because not everyone will have Ethereum, they will have Bitcoin or fiat currency, so in that respect we have coupled the issuance of the token on Ethereum platform from how the investment happens”, Domingo explained.
“Therefore we started adding different options from fiat currencies, Ethereum first and Bitcoin. In the last few weeks with the rising price of Bitcoin Cash, we have investors saying, ‘Look, I started with Bitcoin and now I’ve got Bitcoin Cash and Bitcoin Cash transactions are cheaper and faster’ so it can actually be a good investment with Bitcoin Cash instead of Bitcoin, so we decided it was a good addition to provide basically more options for our investors”, he revealed.
A big sign for me that Blockchain tech will be a major disruptor is the caliber of professionals who are already involved in Blockchain and leading the push- these professionals are young, hungry, highly educated, intelligent and seasoned.
“If I think about my career, I had three different phases and I’m in the third one. The first phase was when I finished my PhD and came out of University. At that time I was in Japan, I studied at the Tokyo Institute of Technology and I joined Toyota which was a traditional Japanese company but internet was booming and I felt that I was missing something. So I quit my corporate job and moved into a start-up in Japan and we did very well, we did an IPO, raised a lot of money, acquired three other companies, so it was actually a great time in my career”, shared Domingo.
“In 2006 I got an offer to join a telecom which was right before the iPhone came out, so I felt I joined the telecom industry at a time when the most exciting thing was happening- the iPhone was coming out, the revolution of the mobile and the growth happened. After ten years in telecom, I felt the excitement I had back then was not there anymore and I was looking for what was the next big thing in terms of growth”, he said.
“Here in Dubai where I’m based, I have been collaborating with an entity called ‘The Dubai Blockchain Concept’ that advises Dubai on Blockchain strategies and Blockchain technologies, so I got a lot more into Blockchain and then public Blockchains and Ethereum and Bitcoin and decided this is what I want to do for the next ten years”, he shared.
Despite all the online chatter and media coverage surrounding Bitcoin and Blockchain, plenty of people are still unaware of just how huge the technology is and to what extent it will disrupt our world. Professionals like Domingo who are in the thick of it all have a much clearer big picture.
“The way I see it is that the current internet has been the internet of information and content and has basically disrupted anyone who was intermediating with information and content”, he said.
“A big example was telecoms where I was the last ten years. Telecoms used to intermediate in messaging and voice and then companies like Skype came with internet protocols like voice and then disrupted the way voice was being offered to consumers. The ones that used to be the gatekeepers of that particular content type then got disintermediated”, Domingo explained.
“What I feel is that the public Blockchain, what they do is a similar thing but for the internet of value and trust. So for anyone today that makes money by intermediating on value and trust is going to be disintermediated because Blockchain is the missing internet protocol to be able to provide value and trust on top of the Internet”, he said.
“Therefore, you will be able to do those things without having a centralized entity or intermediary if you want, charging you for doing that. So its going to be highly disruptive for anyone working in any of those industries”, he added.