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Mercurial rise in bitcoin, making new Digital billionaires

Cameron and Tyler Winklevoss – the identical twins known for their legal battle with Mark Zuckerburg, founder of Facebook, have become bitcoin billionaires following the upswing in value of the currency.

In 2004, the Harvard University- educated and former Olympic rower sued the Facebook founder, claiming he stole their idea for the social networking site. They lost their action for control of the company but were awarded a settlement of $65 million in 2008, out of which they decided to invest $11 million in bitcoin at $120 a coin in 2013. The two former Olympic rowers disclosed in 2013 that they owned $11 million worth of bitcoin. The cryptocurrency’s mercurial rise since then — it has risen by over 1,000% this year — has prompted that investment to over $1 billion. The Winklevoss twins are known as long time bitcoin bulls and are also investors in the crypto exchange Gemini.

cameronandtyler

However, the twins have larger plans on Bitcoin than just emanating wealth in their holdings. Earlier this year, they tried to create an Exchange-Traded Fund for Bitcoin but failed after the U.S. Securities and Exchange Commission discarded the application, due to the possibility of fraud. This engendered the value of crypto currency to crash to $1,050, but now the value of one bitcoin is $11,247.

Had they been successful, it would have opened the door to institutional investing in the currency leading to better opportunities.

In India also, increase in local demand and limited supply has stimulated Bitcoin price to achieve an all-time high on Indian exchanges – nearly 15-per cent the going rate in global markets. The statistics available on bitcoinrates.in shows the current daily average Bitcoin buying and selling rates on all Indian exchanges are Rs.834,812.90 and Rs. 820,489.20 respectively and the value of one bitcoin is Rs.7,43,429 as per now.

Winklevoss Twins

Winklevoss Twins

Although Bitcoin is becoming more of a mainstream investment in recent time, still it has some kind of a bandit status among regulators who are circumspect of its history of chaotic price fluctuations and its commerciality for use in criminal activities. Whereas, a growing number of investors consider Bitcoin as just another set of an alternative asset by which they can diversify their portfolios.

 

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