"We're in the very early stages," he said.
Andreessen made headlines for taking issue with Berkshire Hathaway's Warren Buffett, who said that bitcoin was a "mirage."
Read MoreWarren Buffett blasts bitcoin as 'mirage': 'Stay away!'
Andreessen, co-founder of $4 billion venture capital firm Andreessen Horowitz, alluded to the human capital behind bitcoin as a reason to be bullish.
Read MoreAndreessen vs. Buffett: Is bitcoin a miracle or mirage?
"The other thing that's happening is the number of startups in Silicon Valley that are ramping up right now to build all kinds of applications around bitcoin is staggering," he said. "And so, we're seeing a really interesting flow of early-stage companies that have all kinds of ideas for everything—bitcoin contracts and bitcoin keys and bitcoin title and bitcoin assurance and derivatives and on and on and on, all these different kinds of applications of financial services rebuilt with bitcoin.
Read MoreMichael Novogratz touts 'human capital' behind bitcoin
"And that process is just starting. And so, that's a five to 10-year process just by itself. And so our plan is to invest in the long run."
—By CNBC's Bruno J. Navarro