15 Insights on Winklevoss Twins and Bitcoin
Aug 02, 2017 Posted / 1614 Views
Bitcoin has become a worldwide sensation with it's ability to facilitate users to transact money in a cryptocurrency form, in a peer-to-peer network. It's the first type of digital payment system, established in the year 2009. Many venture capitalists, investors, entrepreneurs have been investing quite of their fortune in this Venture. When we talk about Bitcoin investors, we cannot forget to mention the famous Winklevoss Twins, the celebrated faces of Bitcoins, who have always staked on this innovative system.
Cameron and Tyler Winklevoss, are twins, graduated from Harvard University, famous for ruling the BitCoin industry, and had gained more popularity before entering in the digital currency industry, because they sued Mark Zuckerberg for stealing their idea of the famous social media platform Facebook, which was their brainchild, while Mark was just a hired intern of them. They had learnt about the BitCoins while holidaying in Ibiza and from there they have immensed not only their skin but their whole body into BitCoins, as they clearly stated in an interview.
In the year 2013, the twin brothers invested $1.5 million in the multi-millionaire New York based start up called BitInstant. In their interview they were quoted saying "the funding is meant to allow the company to further scale up its staff and product".
But unfortunately, in the year 2014, the CEO of BitInstant got arrested on the charges of money laundering and selling the bitcoins in the black market. The statement of the twins after his arrest stated that "they were just passive investors". The website of BitInstant went blank on January 2014 and it's blog on October 2014.
The twin brothers, in the year 2014, launched their own financial index company, which gives the price information of BitCoins. The price index retrieves information from seven exchanges, giving accurate information on daily basis about the price of BitCoins, weighing prices , volume of the actual trade data.
The website has even launched it's own application on Google Playstore to make it more convenient for the user to track the market of BitCoins.
The faces of the BitCoins had made huge profit in the digital currency network. It was announced in March 2014 that, the twins had even purchased seats on the Virgin Galactic shuttle (founded by Sir Richard Branson, which offers spaceflights to space tourists) by using the money they profited from their various investments in BitCoins. Their statements on this big spacial purchase were "Cameron and I have decided to use our bitcoin to take the plunge, or rather propulsion, into space.
After the successful launch of their famous price index, Winklevoss Twins launched another BitCoins portal where the investors can buy, sell, trade, store the BitCoins, named Gemini. Gemini is a platform where information related to security to stored BitCoins, the regulatory oversight is provided. Gemini, has received approval from the New York State Department of Financial Services, making it an authentic and trustworthy portal.
After launching several portals and funding many BitCoin related firms , the Winklevoss Twins had filed to register, another ETF (Exchanged-traded fund), from their company Math-Based Asset Services LLC , named Winklevoss BitCoin Trust in the year 2013.
But the authorities of SEC (Securities and Exchange Commission) sadly disapproved their idea, and denied the funds.
In early 2004, the Winklevoss Twins created a social platform named , ConnectU, a social media platform which enabled people to make friends online, update their about happenings, for which they hired an intern named Mark Zuckerberg , after sometime they where shocked to know that Mark has secretly developed his own social media platform named Facebook. They filed a case against him and sued him, to which Mark had also compensated.
But still the Winklevoss Twins considered that Bitcoins has been the biggest social media platform of all the time, and undoubtedly they reign over the digital money.
It has been hugely stated time and again, and is a known fact that the Winklevoss Twins have around 1% of the total bitcoins available in the bitcoins market, which is around 120,000 BTC. Reportedly , they have stated in an interview that they have not used their BitCoins , and have kept their coins very secure in different wallets of several locations.
In March 2017, it marked a historic day as the value of one BitCoin was higher than One ounce of gold. Surely, the money of the internet has made a phenomenal growth in the competitive environment and has left even Gold behind.
“If you take the 9 key characteristics of gold (scarcity, durability, portability etc.) bitcoin is as good if not better than gold. The one thing gold has on bitcoin is thousands of years.” as stated by Cameron Winklevoss.
Accordding to Tyler Winklevoss, BitCoin has been designed specifically for the Internet, he also states that "the way we store and transfer value has been optimized to suit the way that people live. Bankers built money that was optimized to live in banks. But now we bank (and do a lot more) online. So technologists built bitcoin, the money optimized to live online. “It’s almost like imagining a new color”.
BitCoin has no properly governing authority, it has many loopholes, and the security is too low for this digital currency network. The Winklevoss Twins aims to build an infrastructure to govern and regualte the BitCoins market and set up a body which looks after the legal and other issues related to BitCoins.
Their aim behind Gemini is to provide people such a facility which enables them to make their transactions safely with all the regulating bodies to look after.
The twins enlightened the world about the biggest confusion over the value and the protocols. They stated that "Bitcoin with a capital B is the bitcoin protocol through which value travels. And bitcoin lowercase B is the asset that travels through the protocol. These are two different things, but people often confuse them".
On 1st October 2010,a movie had released named The Social Network, which revolves around the story how Facebook was created , and Zuckerberg stole the idea, the story that reveals the settlement between the Winklevoss Twins and Mark Zuckerberg in a court case, where the Twins had sued Mark.
According to the twins in an interview regarding the digital currency they stated that BitCoin is not a mature market to invest as it does not have price stability , which is inarguably true. They further stated that “It’s not yet a mature market. It does not have mature hedging tools. Equity markets are volatile, but there are always ways to hedge with derivatives. There are all sorts of instruments that don’t exist in Bitcoin yet. There’s really no way to express a lot of positions, so right now, Gemini is just a spot cash market for buying and selling. You can’t short. You can’t buy futures, derivatives or swaps. All of these things you come to see in a mature financial market. I think it’s just a matter of time”.
Cameron Winklevoss has said that there are short term risks with the prices and risks because of the volatility, but has long term movements in price. Further he states that "It’s going to start looking older, but also, the older it looks, the less opportunity there is. There’s no reward without risk. If you get into Bitcoin five years from now, it’s not going to be the same risk-reward profile as it is today”.
The twins say that like Dollar is ruling the economy, shortly the cryptocurrency BitCoins will be ruling in the future. “You’ll be using digital currency,” Tyler said. “I think really what will happen is you’ll use a combination of bitcoin, ether, your devices, the ‘Internet of Things.We’ve got billions of devices coming online".
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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