Why Do The Winklevoss Twins Eat, Sleep, Breathe Bitcoin?
Hear what the Winklevoss brothers have to say about their Bitcoin Company. Why is it not good to trust those companies that centralize everything? Read on and know more
Introducing The Winklevoss Twins
To mention the top names it is known for real that the twin Harvard graduates of Facebook fame Cameron and Tyler Winklevoss has just taken the stage updating everyone on their recent Bitcoin projects with a reminder that the twins have been working on an exchange-traded fund under the symbol ‘COIN’ so that old-school traders are sure to trade bitcoins on the NASDAQ OMX where two brothers had recently announced that a new Bitcoin exchange called Gemini. It is here that they want to build a fully regulated and fully compliant US-based exchange.
As Cameron Winklevoss states a lot of people don’t want to deal with the effort as it is needed to secure your bitcoins and that’s why they started to build Gemini that is a US-based exchange with great compliance which is NASDAQ, E-Trade and DTC built into one. He continues that they don’t just have their skin in the game but the whole body.
Further, according to Tyler, there is a long-standing dilemma as it comes to Bitcoin exchanges either too hard or not secure enough while buying and storing bitcoins yourself in a cold storage wallet with private and public keys as a real burden. Therefore these startups make it easy as they aren’t dealing with financial authorities enough and don’t provide enough guarantees to their customers.
The Take Of The Twins On Bitcoin
As Tyler continues Bitcoin was the really strange technology that only geeks as also even not a lot of geeks, it was geeks within geeks. They wanted to make sure that they built this right and also they had to build a great product. So most of the startups deal with that last piece first.
It is then that the ETF with this project as the two brothers wanted building a product for Wall Street traders, bankers and for years the financial industry thought Bitcoin was a joke and didn’t want to make an effort to diversify their portfolios with Bitcoin. As well as to make it as easy as possible the brothers then filed an S-1 registration with SEC to create this financial product that you can buy as any other ETF and has yet to launch as the SEC is looking into it right now whereas in short, it has a neat workaround to make Bitcoin tradable on the NASDAQ OMX.
While it was that John Biggs asked them about the vocal critics against the Winklevoss brothers thereby they answered pretty clearly that they are in Bitcoin for the long term as the sudden interest to an industry they can’t understand as its something that they are passionate about.
How Is Gemini Funded?
According to Cameron they have put their money where their mouth is and don’t just have the skin in the game but also the whole body as they were building a company, Gemini and the ETF that is another company and they don’t know if they’re experts, but the goal is not to be an expert but to change the world. Therefore does Richard Branson understand all the physics behind his spacecraft? That is not sure.
Thereby it is just not the two brothers aren’t building two Bitcoin companies as at one time they owned 1 percent of all mined Bitcoin, or as it was said by Tyler, they eat, sleep, and breathe Bitcoin.
Why Is It That It’s Better Not To Trust Bitcoin Startups That Centralize Everything
Later on, the idea was as Peter Smith of Blockchain.info as well as Susan Athey of Stanford University update everyone on the state of the Bitcoin. As the Mt. Gox collapsed, Bitcoin has lost half of its value, and can it survive following the current reality check? Whereby according to the two experts, Bitcoin as a whole is here to stay as it may have shown that there is a wrong way of handling bitcoins the Mt. Gox way. According to Smith what Mt. Gox as it does bring up all those historical difference that is on philosophy and about how these startups use the Bitcoin protocol as if there are two buckets, the first one is startups that centralize as you send out bitcoins to Mt. Gox moving that into a master account. Thereby would he trust anyone with his bitcoins?
In case you go out and buy bitcoins on an exchange with centralized trust, you should immediately transfer these bitcoins to a service where you can manage public and private keys. Whereas in the other bucket, it is helpful to find other companies such as blockchain providing software to more effectively and more securely manage the bitcoins. As these Bitcoin users manage their public and private keys it means that you can’t break into a wallet if you don’t have the private key as Smith advocates these kinds of services as the philosophy is not surprising as it comes from Blockchain’s COO whereas Athey agrees to it.
Athey further states that consumers don’t have to keep large sums of money in these centralized services, as Mt.Gox had a couple of episodes of freezing withdrawals and in other words, everybody should have anticipated Mt.Gox’s death. Thereby trading on centralized exchanges should remain a hobby as you should be aware of the risks as it just holds few Bitcoin with Smith offering some advice to limit risk as much as possible.