Feeds

Facebook's Winklevoss Bros file to launch Bitcoin Trust for investors

Zuck's terrible twins plan first IPO for virtual currency

Bridging the IT gap between rising business demands and ageing tools

The Facebook-famous Winklevoss twins are set to become the first investors to launch an official Bitcoin-related IPO, with a new trust.

Cameron and Tyler Winklevoss, notorious for their battle with social network impresario Mark Zuckerberg over the creation of Facebook, said in April that they had hoovered up around one per cent of all the Bitcoins in the world - somewhere in the region of 92,000.

With the Bitcoin trading at $120 at the time, that put their holding at $11m, a value that has been knocked down to about $8m today as the digital currency stands around $89.

Nevertheless, the twins seem undaunted, filing with the Securities and Exchange Commission to launch a firm that would give investors shares while Winklevoss Bitcoin Trust deals with the actual Bitcoins. According to the filing, this will help investors "seeking a cost-effective and convenient means to gain exposure to Bitcoins with minimal credit risk".

The twins want to sell $20m worth of shares to kick things off, with each share worth 0.2 of a Bitcoin. The trust will take care of acquiring, securing and safekeeping the Bitcoins, leaving investors with no tasks or costs "over and above those associated with dealing in any other publicly traded security".

The filing's historical chart of the price of Bitcoins from 2010 to 2013 more than illustrates the currency's volatility, with a high of $266 in the second quarter and a low of $45 in the same three months.

Critics of the e-currency say the Bitcoin market is nothing more than an empty bubble, destined to pop, since the money is not currently used for actually buying goods and services and most of its value comes from being traded by speculators and from its limited pool.

Proponents of the digital cash, including the Winklevii, claim that the price volatility is just down to the market's immaturity and will settle down once folks realise virtual currencies are "here to stay". Supporters are also keen because Bitcoins are divorced from governments and central banks, created instead by "mining", where programmers solve maths riddles.

“We have elected to put our money and faith in a mathematical framework that is free of politics and human error,” Tyler Winklevoss said back in April. ®

Application security programs and practises

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.