Top Silicon Valley VC: I'm Investing In Bitcoin Startups

Chris Dixon, like many other Silicon Valley investors, is really excited about Bitcoin. He says he's invested a significant amount of money into it.

Bitcoin is a digital currency that was first introduced in 2008 and allows instant transfers to anyone, anywhere.

Dixon spoke about why he and the rest of Silicon Valley are excited about Bitcoin, and what types of Bitcoin startups he's looking to invest in.

The Andreessen Horowitz partner says some of the smartest entrepreneurs in California are thinking about starting Bitcoin companies. They're working on PayPal-like models, exchanges that will help people trade the currency, and banking models to help people store bitcoins.

Dixon says Bitcoin is exciting partially because it offers relief to "pent-up frustration" surrounding the financial-tech industry.

"I think for a lot of people in tech, finance has been this very frustrating area," says Dixon. "We see what happens on Wall Street, it's very corrupt, and it's so highly regulated that, when you do try to start a company, you run into all these regulations. [Bitcoin is] this release for the pent-up frustration. Finally something is happening in finance tech....[We spent] years in the desert there.