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

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 …

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Anonymous Coward

So let me get this straight, their Bitcoins are 'worth' $8 million, but they're selling them in shares that amount to $20 million?

And people wonder why the Bitcoin market has a reputation for being packed to the gills with speculators and chancers....

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Ponzi?

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Devil

murph,

I guess you won't be interested in my scheme then.

I've got £100 in my wallet at the moment. I'm selling shares in a company that will hold that £100, secure and protected in perpetuity. How much you ask? Well, I'm glad you asked me that. A very reasonable £10 a share. I plan to sell 100 shares at first, and maybe more in future. Then you won't need to worry about holding cash yourself, you can securely trade in my rock-solid securities.

I believe my business reputation as a rowing (in both senses), suing, jumper-wearing, publicity-whoring numpty ought to do wonders for the reputation of my company...

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Anonymous Coward

I don't know if it's a ponzi, Anyone expecting steady dividends from such a wildly fluctuating investment would be a fool, so no-one is getting paid off. They're rating their bitcoins at $217 each when the 'market' says $89. Why not just buy them direct from the market instead of through these couple of chancers?

Genuinely not that up on 'bitcoins', can someone tell me why?

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Genuinely not that up on 'bitcoins', can someone tell me why?

Because.

I can think of no other reason. Standard warning: Bitcoins can go down as well as up, down, flying around, looping the loop and defying the ground...

There is built-in deflation in the Bitcoin system. So in theory they will always go up in value. However, in theory they can't work as a currency because there's deflation built into the system. So my bet is still on them failing. Hence I don't own any. Others disagree and tell me that "I don't get it" and that no other currencies are any more reliable. Britain has had a national debt since the 1800s and not defaulted on it yet. Bitcoin has a 5 year history of volatility, cock-ups and scams...

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Hoping for the greater mug to come along?

For every mug there is a greater mug - until you reach peak mug, I guess. I can't see that happening any time soon.

There's another forum I'm a member of - everyone there tried to convince me the future was buying property in 2007, then when that went a bit pear shaped they urged me into gold because reasons. Their reasons appeared to be no more than hopeful post-rationalisation now, and silver has followed a similar trajectory. I had advice to buy wildly ballooning stocks in the dotcomboomandbust 1.0 which wiped out sugar daddy companies like Marconi and saw Murdoch and ITV take big nut-kicks. They told me to invest in the facebook IPO, too.

I've come to the conclusion that people talk up things they have already taken great stakes in, hoping they can cover their arses and get rich quick. I suspect Herr's Winkelvoss have taken a haircut after buying bitcoins at their peak, know dumping them all on the market to cash in will wipe them out altogether, so are trying to create an artificial valuation to mitigate their monumentally poor choice of investment vehicles.

Problem with bitcoins is they're a truly fiat currency. Most world currencies are fiat, of course, but are ultimately backed by armies, tanks, bombs and the land they defend. Bitcoins are backed by a metric fuckload of wasted processor cycles which could have been folding proteins or finding aliens...

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Thumb Up

Re: Hoping for the greater mug to come along?

There's another forum I'm a member of ...

Sounds like a great forum for advice on when to sell your investments, simply do the reverse of the advice given and you should do quite well.

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I guess they are hoping to have it work like gold ETFs.

In ETFs, the market maker, that would be the twins, sells the shares and then uses the money, minus commissions, to buy the underling assets, shares of S&P 500 companies, gold or even bitcoins.

When there are more buyers than sellers, the market maker keeps selling shares and buying the asset, when there are more sellers than buyers, the market maker buys the shares and liquidates the asset.

At least, that how I think ETFs work, feel free to laugh at me if I got it ridiculously wrong.

Anyway, I don't ever intend to get into bitcoins

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Re: Hoping for the greater mug to come along?

[i]Sounds like a great forum for advice on when to sell your investments, simply do the reverse of the advice given and you should do quite well.[/i]

You're not wrong - watch where the stupid money is going and bet against it on the grounds that by the time the stupid money arrives, the guys who created the bubble will have cut and run...

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Pop!

Goes the Winklevoss!

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g e
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"free of politics"

Good luck keeping it that way

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Re: "free of politics"

"and human error”

I'm confused, the twins are involved AND expect it to be free of human error? Isn't that deliberately contradictory? Oh - my fault I neglected to factor in their long relationship with delusional thinking.

(These two are priceless.)

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Winklevoss... you know they heard about it in school. Still not cool as the last name Weiner.

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Coat

On my way to the door.

If I had a position in Bitcoins (which I don't), I would be getting out right about here. As the old saying goes, when the dumb money comes in, it is time to leave.

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Not the first IPO

Two slight inaccuracies. This isn't the first Bitcoin-related IPO. See http://www.guardian.co.uk/technology/blog/2013/jul/01/bitcoin-virtual-fortune-crypto-currency for just one example. Also, Bitcoins today were worth nearly $85 this morning and are now $85.61, not $89.

That aside, trading in a virtual currency is no different from trading in a 'real' currency and there are fortunes to be made and lost, which means some chancers (or Winklevossi) will come along to hoover up the cash that some other sucker loses.

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Anonymous Coward

"since the money is not currently used for actually buying goods and services"

*cough* Silk Road *cough*

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Angel

Re: "since the money is not currently used for actually buying goods and services"

*cough* Silk Road *cough*

John, is that you? Johhhnnn, come out from under the bed now.

Come on, good Johnneee, don't make me send in the nurses to work you over.

Alright, John, if you play nice you can have EXTRA bath salts tonight.

"I'm coooommmmmiiiiinnnng..... "

*cough* Silk Road *cough*

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Winklevii?

Winklevossen, surely; Winklevii would be the plural of Winklevius.

Right, I'm going . . .

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Coffee/keyboard

Winklevoss!

B'wahh ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha haaahhhhhh... eh, heh heh, ehhh...

Sorry about that.

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Quite possibly the funniest surname I've heard in the news since...

Buttofuoco!

D'ahh ha ha ha ha ha hahh...

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The Winklevoss Twins... the gift that keeps on giving!

What a pair of c**k wallets!

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