A new investment fund, El Zonte Capital, hopes to bring the Bitcoin Beach experience to the entire world. Controversial journalists and podcasters Max Keizer and Stacy Herbert teamed up with Swan Bitcoin’s Cory Klippsten to put their money on the case. El Zonte Capital has $5 million in committed funding, and that’s just the beginning.
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The place where El Salvador’s Bitcoin law began, El Zonte AKA Bitcoin Beach, is the inspiration behind the venture. “El Zonte is hyperbitcoinization. Hyperbitcoinization is economic freedom, and hyperbitcoinization is our main investment thesis,” Keizer told Bitcoin Magazine.
Max Keizer & Stacy Herbert launch El Zonte Capital https://t.co/tZvf7u7Pte
— El Zonte Capital 🏄🌋🇸🇻 (@ElZonteCapital) February 15, 2022
For the past two months, Keizer and Herbert have experienced bitcoin life firsthand by living in El Salvador. Speaking about their conversations with politicians and merchants across the country, Herbert said: “We asked all of them hard, in-depth questions and discussed their plans at length. This is the place to be.” Keizer added: “After experiencing what it looks like in reality, we see this as the inevitable near future for everyone else. We are riding this wave like any surfer would.”
What will El Zonte Capital do?
To get into the flesh of things, we give the microphone to Cory Klippsten of Bitcoiner Ventures. He said: “We hope to facilitate a mutual exchange of ideas and resources, with companies around the world bringing their products and services to El Salvador, and companies in El Salvador exporting their innovation to the rest of the world.”
The trio is no stranger to investing, nor to bitcoin-specific investments. As a partner in Bitcoiner Ventures, Klippsten has an interest in impenetrable, Zion social network, the Breeze wallet; and giants like Galoy, Unchained Capital and Bitrefill. For their part, Keizer and Herbert have investments in Kraken, Swan Bitcoin and Bitfinex.
BTC Price Chart for 03/11/2022 on Bitstamp | Source: BTC/USD on TradingView.com
Should you bet on El Salvador?
The founding members of El Zonte Capital couldn’t be more optimistic about bitcoin and El Salvador. Keizer told Bitcoin Magazine, “The future is all around us. I haven’t been this excited about Bitcoin since I first heard about Bitcoin.” Herbert added: “El Salvador attracts the brightest, most creative people. Jack Dorsey recently said that “much of the future will be in El Salvador,” and he’s not wrong. The future is now and it is here”
A Bitcoin conversation has taken place
— Stacy Herbert 🇸🇻 (@stacyherbert) February 11, 2022
Their answer to the title question is a resounding yes. “We are going to look at education and educational technology to get as many people on board as possible. El Salvador will be bigger than Singapore.” Keizer’s prediction here is ambitious to say the least. But bitcoin is legal tender in El Salvador and not in Singapore. And bitcoin companies know this.
Can El Zonte Capital shake up the market?
What does “hyperbitcoinization is our main investment thesis” mean? It means that El Zonte Capital is betting that the whole world uses bitcoin. Will that happen overnight? Probably not. So the investment fund is playing the long game. They also fund businesses that will likely take years to get off the ground.
— Ray Youssef (@raypaxful) March 11, 2022
So no, El Zonte Capital will not shake up the market right away. However, if you lower your time preference, you will see the importance of this mutual fund. Their capital allocation is intended to help El Salvador’s experiment succeed. Moreover, they do not invest in the present of the bitcoin network. El Zonte Capital looks to the future. Planting seeds for what is to come.
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So yes, El Zonte Capital and the companies they fund will hopefully influence the market in the future. If everything goes according to plan, hyperbitcoinization will take over the world. That is the day when El Zonte Capital gambles.