“Our view is that blockchain is a core fundamental technology that will end up having a profound impact on many industries, not just the financial service industry,” Case says.

However, Case has concerns about ICOs, or initial coin offerings, a form of digital crowdfunding that uses cryptocurrency. He says they need to be regulated.

“We need to be a little more cautious around things like ICOs — some of them will work out but many of them won’t,” Case says. “It’s not surprising to me that the SEC has started to look harder at them because using some of these new technologies to raise capital in a less regulated way with fewer consumer protections is not sustainable.”

Case also believes that as the current fervor inevitably settles, good businesses will be separated from those riding the coat tails of the hype. As he learned during the dot-com bubble, often entrepreneurs are more focused on raising money than building a sustainable business — to their detriment. Instead of focusing on getting capital, focus on building your business, Case advises.

“Twenty years ago, there were many companies that went public with little in the way of revenue and generally no profits. Some of them ended up moving on to be great successes, but many fell by the wayside,” Case says.

“You have to be enthusiastic by the possibilities, but with eyes wide open about the risks. It should be about investing in great entrepreneurs building great companies and less around speculating on cryptocurrencies and certain financial instruments.”

See also:

Litecoin founder Charlie Lee says he’s sold all his holdings in the cryptocurrency

Teenage bitcoin millionaire: ‘It’s a wonderful time to buy bitcoin’

Bitcoin drops 10% as top cryptocurrency marketplace starts supporting rival bitcoin cash

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