Winklevoss Brothers Launched Bitcoin Price TrackerAdded: Monday, March 3rd, 2014
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Tyler and Cameron Winklevoss, the twins whose names you may know from “The Social Network” movie, hold about $25 million in Bitcoin. They recently announced the launch of their own price tracker for the digital currency. Since MtGox, known as the most prominent Bitcoin exchange, prevented withdrawals a few weeks ago, sources of information on Bitcoin like RTBTC have become unreliable. Winklevoss’ project, “Winkdex”, is going to solve the problem.
Cameron Winklevoss, the chief executive officer of the company behind Winkdex, believes that they will establish an accurate spot price which will reflect the real value of Bitcoin and resolve the price confusion existing thanks to the different exchanges. His brother Tyler is the president of the company. Twins say that the creation of an index reflecting accurate pricing will help to ensure wider acceptance of Bitcoin as an asset class.
Winkdex takes an amalgamation of Bitcoin prices over 6 exchanges, including Japanese MtGox, British Bitstamp and Bulgarian BTC-E. Then the prices are averaged together through a “proprietary, patent pending Winkdex formula”. The later takes into account volume and timing of transactions, providing more weight to transactions that have had more trades in the last couple hours.
The Winklevoss twins will use Winkdex internally to price their own Bitcoin holdings. Those have never been publicly disclosed. One year ago, the brothers admitted their holdings amounted to 1% of all Bitcoins in existence. Thus, some can make a conclusion that it would equate to an investment of $11 million in last year prices. If the Winkdex sets price of Bitcoin at $592, it will mean that the Winklevoss have more than doubled their money in the interim.
A decade ago, the brothers sued Facebook’s Mark Zuckerberg for $140 million, accusing Mark of stealing their idea for the social network. Four years later, the case was settled for $65 million.
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Monday, March 3rd, 2014
|posted by (2014-03-04 03:11:26)|
|"Then the prices are averaged together through a “proprietary, patent pending Winkdex formula”"|
That is non-sense. It's either averaged, or its not. Just use a different word instead of making stuff up.
|posted by (2014-03-04 05:45:59)|
|The "average" might be weighted by things like overall volume traded, assigning higher value, (beyond the exchange's simple percentage of overall trade volume,) in the formula to the day's busiest exchange. The formula might also include variables like the exchange rates for the currencies the Bitcoins are converted into and the currencies used to purchase them, the number of new Bitcoins mined that day, the strength of Bitcoin as a transactional medium, etc.|
|FYI, try reading the whole story before you make a comment. The article clearly states 'The later takes into account volume and timing of transactions, providing more weight to transactions that have had more trades in the last couple hours', plus they are not going to state the exact calculations because the patent is pending. The fact they hold at least 1% of all Bitcoins in existence, would be a good consideration to the fact it would at least be fair, if not greater in value, to all Bitcoin owners.|
|posted by (2014-03-05 03:14:28)|
|Tdatb: Thanks, "weighted" was the answer.|
Ogami_Itto: Details matter. I was just pointing out the insufficient detail (par for extratorrent stories). A really anal mathematician could probably write a page about the difference.
|posted by (2014-03-05 10:46:04)|
|I just love how they own 25$ million in bitcoin, and now they're starting a business that will tell people just how much each bitcoin is worth...|
Doesn't that sound kinda fishy to anyone else?
|Tomorrow's headline news, Facebook opens their own Bitcoin exchange. Winklevoss twins sue Facebook for stealing their idea. Troll ..Big Lol||
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