Winklevoss Brothers Say Lack of Bitcoin Regulation Hurting the Market

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Winklevoss Brothers Say Lack of Bitcoin Regulation Hurting the Market

Tyler and Cameron Winklevoss, the twin brothers say that Bitcoin has potential to expand to more than one trillion dollars; however, the lack of regulation is hurting the market. They claim that the lack of a regulated market for Bitcoin in North America is causing volatility in the virtual currency and in consequence it is unable to live up to the potential.

The Winklevoss Brothers are the same people who claim that Facebook was their idea; however, Mark Zuckerberg stole this. Talking to huge audience and experts in Bitcoin ecosystem representing various firms Cameron Winklevoss said that people fixate on price. He was putting his views at the Inside ETFs conference in Hollywood, Florida.

He noted that price is important, but the volatility is a function of dealing with a new technology in different parts of the world. Nonetheless, the duo is seeking approval from regulators for a Bitcoin exchange-traded fund that will track the performance of the average price of Bitcoin. This has long been in pipeline, ForexMinute had reported this earlier.

One such move came when their company announced plans to create a U.S.-regulated Bitcoin exchange. This is one step towards realizing their dream to become pioneer in regulated Bitcoin exchange that will generate trust among investors. They believe Bitcoin could one day morph into a gold-like asset class or even perform better than the yellow metal.

Generate Trust among Investors

Tyler Winklevoss says that if Bitcoin is a better gold or seen as a type of gold-like asset, then it could be in the trillions on a market cap and he feels those are very real possibilities. However, to Bitcoin industry become a trillion dollar economy, the Winklevoss twins realize Bitcoin needs help. Several instances like Silk Road and Mt. Gox have left bad marks in the entire system.

A major blow for Bitcoin came in the 2014 when Mt. Gox, the leading Bitcoin exchange of that time went bankrupt. Now as reports appear that it was inside job, investors suspect the modus-operandi of the Bitcoin exchanges. A lot of trust has been lost by the Bitcoin exchanges, particularly, when there are no regulations that can compensate the victims.

The Winklevoss Brothers feel that there is huge requirement for improving the system to help Bitcoin get through its growing pains. They are doing their part by building infrastructure aimed at legitimizing and securing the currency by launching ‘Gemini’, a Bitcoin exchange for U.S. consumers.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com