If you have invested even $1 into cryptocurrency, or am thinking about it, or have dived deep into it, you are considered a crypto/blockchain venture capitalist.
Venture Capitalism, is the act and activities of private equity, meaning that it's from individual, or multiple individuals forming a group, to finance small, early stage, emerging enterprises that are deemed to have high growth potential, or have shown high growth in terms of revenue, hires, reach, etc.
Venture Capitalists invests in such early stage companies in exchange for stake, ownership, equity and profits/dividends from the companies they invest in...but of course, eyes wide open - there is a risk that you can take on financing risky start ups in hopes that some of the cryptocurrencies and blockchain enterprises you invest in become successful.
If the cryptocurrency or blockchain enterprise you had invested in becomes successful, you can either exit (sell it) as price rises, or receive profits/dividends in cryptocurrency.
Of course, if it tanks/fails, the value may decrease, and disappear completely. And in today's market, more than 95% of Initial Token / Coin Offerings (ICO, which is equivalent to Initial Public Offering in the physical world) are outright shitcoins, deadcoins and scams.
So never, never rush to invest in bitcoin, cryptocurrency or anything in general. Research, read the reddits and connect with other people. Understand the whitepaper, and look for solid and experienced teams.
Remember, always invest for:
You should only always invest amounts that you are willing and able to lose.
Basically, there are few things to clarify here:
So basically when you invest, you invest generally into blockchain technology as a whole, and #2, #3 and #4 happens when blockchain technology is applied to currency and utility.
The technology itself, though it's fairly "new" (written and thought about in early 2000; Bitcoin was created in 2009), and there is so much to discover how to apply and grow and build it - it is a technology.
Used well, it's amazing.
It can save millions or billions of dollars with its cost savings (think of it as AI technology that helps to automate anything online), it can save lives if applied well, and can make investors very rich.
However, when used by less-than-honest/good people (especially those who are outright wanting to scam you), that will make it less safe. This is the reason why I say again and again to research first, and do not rush to buy stuff, because of what people say or market momentum etc.
It can also make people paranoid when they have too much money (if they're not ready for it), or suffer emotionally (especially with market ups and downs, or if the stuff they bought crashed/lost value...or if they get scammed).
Regardless of what we think or feel about it, blockchain technology and its resultant application to creating cryptocurrencies, blockchain enterprises and utility tokens will continue to grow.
As governments research and understand it better, it will increasingly become mainstream, and become part of our lives, especially by 2020.
Might as well research it ourselves and become pioneers and early adopters now.
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