Thursday, 17 February 2022 15:02

Bitcoiners to invest US$5 million in salvadoran companies focused on hyperbitcoinization

Written by Evelyn Alas

According to Bitcoin Magazine, Max Keizer and Stacy Herbert headed the firm El Zonte Capital, or "EZ Cap" for short, after living for the past two months in the coastal city and experiencing hands-on what a Bitcoin-based economy looks like.

EZ Cap will start with an initial committed capital fund of US$5 million. Keizer and Herbert are the firm's general partners (GP), along with Swan Bitcoin and Bitcoiner Ventures founder Cory Klippsten.

Hyperbitcoinization is the tipping point at which Bitcoin becomes the world's default value system.

As more individuals and groups around the world realize the advantages of a natively digital, censorship-resistant, borderless system for transacting value, a critical mass of users will eventually drive the demonetization of the currency and the replacement of our world's entrenched financial institutions and global powers with a more equitable public system.

The firm will focus on empowering companies developing solutions around Lightning, payments and the use of bitcoin as a savings technology, which it sees as three vital pillars of a hyperbitcoinized world. The fourth pillar, legislation, is currently best seen precisely in El Salvador.

Keizer explained that most tech hubs have three things in common: good educational centers, access to capital and entrepreneurs. Initially, EZ Capital will bring capital to entrepreneurs in the country and invite builders from around the world to go there and, later, look at education.