For the Winklevoss Brothers: In Bitcoin We Trust

Metropolitan Museum of Art
Museums Benefiting from Grants to Develop New Audience Engagement Apps
June 30, 2013
Cure for Aids
Latest “Proof of Concept” in AIDS Research Promising
July 16, 2013

For the Winklevoss Brothers: In Bitcoin We Trust

Bitcoin

Bitcoin, the world’s first alternative digital currency (photo by zcopley)

Bitcoin

Bitcoin, the world’s first alternative digital currency (photo by zcopley)

The fortunes of Bitcoin just keep changing. If you’re into stock market volatility then Bitcoin provides the ultimate rush. That, as you can imagine, is not exactly how Bitcoin, the world’s first alternative digital currency, is marketing itself. But after the recent Bitcoin crash that saw a fifty percent devaluation, an incredible rebound might be taking shape. The Winklevoss brothers, Cameron and Tyler, known for creating the forerunner to Facebook (and then having their feud with Mark Zuckerberg splashed onto movie screens in the Social Network) recently announced the creation of a Bitcoin exchange-traded fund (ETF).

To be very honest, I’m hardly a specialist in cryptocurrency. Some economists and financial wizards feel very strongly that Bitcoin is a bad idea and will doom its investors. As for why the Winklevoss (known collectively as the Winklevii) are raising $20 million for a Bitcoin fund, it shouldn’t be overlooked that they own 1% of all the bitcoins in existence, amounting to approximately $11 million. So, clearly the Winklevoss duo are trying to solidify their position at the ground floor of a movement that they think will see much better days. 

And, as for why this qualifies as good news, well, I think it’s incredibly positive when innovators continue to push the limits. The conservative financial analyst in me deplores unnecessary risk taking. But then there’s the glowing optimist. She feels very strongly that entrepreneurial spirit is the beating heart of positive social change and human improvement. Investing in a new form of currency that is supposedly designed to meet the demands of the internet age and avoid the geopolitical lunacy to which normal currencies are inevitably yoked, pretty much meets the definition of forward-thinking boldness.

We shall see what the future holds for the Winklevoss Bitcoin Trust. At the very least it might make for a great movie!