LinkedIn co-founder Reid Hoffman declares bitcoin as part of his investment plan

Speaking in an interview with CNBC on Monday, Reid Hoffman, co-founder of LinkedIn and an early investor of Facebook, stated that the peer-to-peer decentralized digital currency bitcoin is a part of his five-year investment plan, an enthusiastic investment endorsement for the virtual currency.

Although the hosts had suggested that investors should look into investing in automation, wearable technology and healthcare over the next three to five years, Hoffman alluded to bitcoin as one of his primary investment vehicles over the next little while.

Hoffman, who became a member of the board of directors at secure bitcoin wallet startup Xapo, noted that the virtual currency has garnered his interest, particularly over the past six to 12 months, a timeframe that has allowed bitcoin to grow to new heights.

“I think it’s an incredible system that’s created a ledger that is across – a distributed ledger across the whole world for it can be money but it can also be other things,” averred Hoffman, who confirmed that he has acquired a few bitcoins as well as his investment in Xapo.

Experts had pointed to price volatility as being a concern for both Hoffman and investors, but the LinkedIn chairman said that he doesn’t look at the price every single day because it’s a medium-term investment for him. He did say, though, that people shouldn’t invest money into bitcoin if they’re “willing to lose money.”

Moving forward, the biggest innovation and advancement for Hoffman is bitcoin’s platform, an “interesting layer.” This has been a common element that industry professionals and financial analysts have cited.

“You can have bitcoin stand for something that isn’t just a bitcoin,” added Hoffman. “It could mean your car. So then your car could be accounted for on a general ledger that is then – you know, can let you do electronic contracts. You could put liens against it, moving it all into the electronic age.”