LinkedIn Co-Founder: Bitcoin is in My Five-Year Investment Plan

LinkedIn co-founder Reid Hoffman talks about the potential of bitcoin's underlying platform in a new interview with CNBC.

AccessTimeIconJul 14, 2014 at 9:05 p.m. UTC
Updated Aug 13, 2021 at 11:01 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

LinkedIn co-founder, early Facebook investor and Greylock Partners partner Reid Hoffman has declared his enthusiasm for bitcoin in a new interview with CNBC's 'Squawk Alley'.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • aimed to assess Hoffman's current opinion of opportunities in the market given his experience and success in early social media.

    Notably, despite the suggestions by show hosts that such industries as wearable technology, healthcare and home automation were areas that investors should be considering for investment over the next three-to-five years, Hoffman suggested he is increasingly focused on bitcoin.

    Indicating that the ecosystem has piqued his interest in the last six to 12 months, Hoffman lauded bitcoin, saying:

    "I think it's an incredible system that's created a ledger that is across – a distributed ledger across the whole world for it can be money but it can also be other things."

    Hoffman recently joined the board of directors at secure bitcoin wallet startup Xapo, an announcement that was made when the company reported $20m in new financing from firms including Greylock Parnters.

    Bitcoin ownership

    LinkedIn
    LinkedIn

    In the interview, Hoffman discussed his personal experience with bitcoin, confirming that he has purchased "a few bitcoins" to date in addition to his investment in Xapo.

    Hoffman also dismissed suggestions that he may be worried about the price of bitcoin given the volatility that this indicator has experienced so far in 2014.

    He added:

    "I don't check [the price] every day. It's more a question of a three- to five-year horizon, not a daily horizon."

    Despite this, Hoffman cautioned investors, echoing the familiar refrain that investors shouldn't put any money into bitcoin directly unless they are "willing to lose the money".

    Platform for innovation

    Hoffman further stressed that bitcoin's true innovation will be its platform, which he called its "most interesting layer".

    Citing smart contracts as one such example of the innovation bitcoin entrepreneurs have yet to fully unlock, Hoffman said:

    "You can have bitcoin stand for something that isn't just a bitcoin. [...] It could mean your car. So then your car could be accounted for on a general ledger that is then – you know, can let you do electronic contracts. you could put liens against it, moving it all into the electronic age."

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.