Bitcoin Capital: The Bitcoin Fund

Written by Jason Simpkins
Posted January 4, 2016 at 5:18PM

Investing in Bitcoin can be tricky, no doubt.

It's a new kind of currency, still in its earliest days of existence. So there's a good deal of uncertainty and volatility.

Still, the crypto-currency does offer some added insurance in terms of wealth preservation and diversification.

Perhaps the simplest way to investing in Bitcoin would be to buy it outright.

Coinbase, for instance, sells BTC for a slight mark-up of about 1% of the current market price. Coinbase also offers automatic Bitcoin buying at regular intervals so investors can gradually build a stake. And it has an option to link your bank account to your Coinbase wallet.

Another way to invest would be through a Bitcoin fund, like Bitcoin Capital.

Bitcoin Capital is a high-risk, high-return Bitcoin fund managed by Max Keiser and Simon Dixon. Keiser is, of course, host of the Keiser Report and a long-time Bitcoin advocate. His was the first global news outlet to cover Bitcoin when it was trading at $3. And many startups in the Bitcoin space credit the Keiser Report for getting them started.

Bitcoin Capital, the Bitcoin fund he's co-founded, is a long-term venture capital fund that invests in the crypto-currency itself, as well as an array of associated start-up companies.

The fund pays out a daily Bitcoin dividend determined by the currency mining process. Remember, Bitcoin is not printed by a sovereign entity but rather technologically mined. This dividend goes directly into the fund investor's Bitcoin wallet. (If you don't have a Bitcoin wallet Bitcoin Capital will help you set one up.)

Additional dividends are paid out when the fund makes successful exits from its investments. This is important because mining returns will diminish over time, as the process becomes less profitable.

Half of all dividends generated are paid to investors on a daily basis, with the other half going to the fund's founders.

The daily dividend return is made possible by the small-scale of the funds, which raise roughly $1 million in capital before closing to investment. Bitcoin Capital is currently courting investments for its third fund, Bitcoin Capital 3.

So far, they've raised over $745,000, which is roughly 75% of the fund's goal. There are four days left if you'd like to take part.

You can sign up at www.bnktothefuture.com. Once you set up an account you can fund it with a credit card, wire transfer, or Bitcoin, and invest in the Bitcoin Capital fund.

Be warned, however, that shares of the fund are non-redeemable and there is no liquid market market to sell your shares. All profits will be achieved through the dividends accrued.

This is a high-risk, high-reward venture for those that wish to speculate on the growth of Bitcoin. There is no other venture capital fund that pays out daily dividends.

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