If first generation companies were focused on the infrastructure aspects of the crypto-currency (generating or mining actual Bitcoin currency and providing an exchange for it), the next wave will be about making the math-based money simple for non-hackers to use, says Boost VC founder Adam Draper. “We are especially interested in startups that make it easier to actually spend Bitcoin currency,” Draper says. “Security is another big opportunity. If Bitcoin is to succeed as a global currency and really start being used for transactions, everyone needs to trust it.”
Trust in Bitcoin has been hard to come by lately. Straight-up theft of Bitcoin has been a regular occurrence at the electronic exchanges and from the electronic wallets where Bitcoin currency is “stored.” There is also the generally outlaw nature of those who prefer it, using the anonymous, untraceable Bitcoin to buy drugs and other illegal items.