Bitcoin Forum

 Bitcoin, the virtual currency that was once the talk of the financial world, has been taking a beating over the last year with the price tumbling downward.

Now two of the biggest boosters of the virtual currency, Cameron and Tyler Winklevoss, are trying to firm up support by creating the first regulated Bitcoin exchange for American customers — what they are calling the Nasdaq of Bitcoin.

The brothers, who received $65 million in Facebook shares and cash in 2008 after jousting with its founder, Mark Zuckerberg, have hired engineers from top hedge funds, enlisted a bank and engaged regulators with the aim of opening their exchange — named Gemini, Latin for twins — in the coming months.

The exchange, which the twins have financed themselves, is a risky bet, given that the virtual currency industry has been a target of hackers and has faced existential questions about its legitimacy. But the brothers are betting that the currency will be able to rise again if it follows the same playbook as the more established financial industry.

“Right now we have to build the infrastructure,” Tyler Winklevoss said. “You have to walk before you run.”

Read more:http://dealbook.nytimes.com/2015/01/22/winklevoss-twins-aim-to-take-bitcoin-mainstream-with-a-regulated-exchange/?_r=0

Well they have been working on that ETF for quite some time now
Getting coinbase and the NYSE on it was a step forward so I'm looking forward to when there actually is an exchange set up.
Besides if it has these ridiculous returns later it will be a capital swarm ^^

Old hat that I have been hearing forever
I will believe it the day the ETF actually launches to the retail public

its because it takes forever and a day to go through the regulation hoops and was never going to happen in a day. past the last few hurdles now but still 6mth ish away.

exactly. they are pioneers.

Actually this bit of news, it actually brand new.  A new Bitcoin based fully regulated and fully compliant exchange based in New York:

https://blog.gemini.com/welcome-to-gemini/

A NYSE or NASDAQ for Crypto, if you will.  This is totally unrelated to the COIN ETF that's launching sometime this year, this is a full on exchange, where both Institutions and Individuals can take part.

This is not old hat, this is actually a pretty major news story.

Buckle up everyone. Shit is getting real  8)

What is their definition of a regulated exchange?

AML, KYC, FINRA, NY Bitlicense and all that good jazz...

Just legit all the away around.

And the ETF on top of it.

I don't know how they are going to make it regulated in a way. Or in a way, does bitcoin need to be regulated in the first place? Even if they have managed to do that, what impact would it bring especially when you already have tons of other bitcoin exchangers around.

Bitstamp had KYC and did all the due diligence that FINRA and Bitlicense would require. This doesn't make me feel warm and fuzzy.

This will be really good when it's finally up. I believe it will help the overall bitcoin price.

BUT Bitcoin was made with other AIM, you hypocrites (according to the BTC hard core).

Bitcoin was made for freedom, right? All over you can read " Bitcoin is anonymity, Bitcoin is not like a bank, Bitcoin bla bla"

Are not these your beliefs?Are you not libertarian anymore? :)

 If so, why are you excited about a REGULATED market? Why would someone use ANOTHER regulated market ?

There is a VERY big one outside of Bitcoin. You can use it right now.
There are a lot of Forex, Stock markets, ALL OF THEM ARE ALREADY REGULATED.

A regulated market means ALL the papers that a bank requires you now. Nothing more, nothing less.

you will be reported to IRS(or similar tax authorities, you will be reported for so called suspicious transactions, etc) .

REGULATED = CENTRALIZED  and everywhere i see on this forum, it is written:"we want DE-centralized services "

Why do you still use Bitcoin if you want all of these, you hypocrites ?

In the world we must however compromise. If bringing in a regulated market means greater overall use of bitcoin with wider availability then so be it. We do not have to use that specific exchange or market, we have the choice of what we want to use this for. As far as I am concerned it is still the same bitcoin, things have not changed other than one other exchange being there which will help bitcoin become more widely accepted. Is this not what people want as well?

WTF are you talking about? Exchanges are for exchanging fiat. We have wallets for exchanging bitcoins. The only wallets for fiat are in your purse, you silly goose.

How will you fund or cash out BTC, Mr. SmartAss? :) Will you make a magic for that? You will need an exchanger, grandpa

You will tell me the old story now: that you use BTC for buying anything you want and you don't need cash, you hypocrite ! lol

Well, I have a bad news for you, grandpa. BTC is not used for that. BTC is used for speculation and black market.

Please stay away of drugs for a while.

What do you mean? Why would anyone do such a stupid thing? Go back to your piggybank, Junior.

i think it means that they're aiming to go fully legit on a fiat side of money transmitting service, regulation wise

It might be easier (and cheaper) to directly buy bitcoins.  :)

you forgot IRS.

nobody is going to use their joke exchange lol

They had the idea for a social network, but they were too slow for Zuckerberg. They qualified for the Olympics, but again they were too slow. They wanted to launch the first licensed American exchange, but again, they were too slow for Coinbase. At first it was funny, but now it's getting tragic. These guys can't catch a break.

Coinbase is the same. What's the difference between the Coinbase's shareholders and Winklevoss? :)  2 gangs...same shit

Several magnitudes of savviness. The bros are still wet behind the ears.

Well it looks like they failed to launch Gemini ahead of Coinbase's exchange.

At least they can still launch the first Bitcoin ETF, COIN.

Win?   :'(

Bitcoin, or at least the idea behind, can't be centralised. Even if the government had 51%, We would just use the same principle but with a new coin.

Can you just put him on ignore? His intelligence has been shown rather low from all his posts. We dont need to waste bandwidth on him.

Competition is good so its good that Coinbase is taking the lead, maybe it makes the Winklevii wake up and go faster.

Yeah they're too slow. Regulation or not, the slow one does not win the race.

So do you want the exchanges to keep going down? People who are from the US and trade even here can get arrested (look at BurtW).
The exchanges have to legalize their trading of fiat.

Now that someone with money stands to gain more in the absence of competition, expect that law enforcement against all traders not in complete compliance will start ratcheting up.

Remember, their goal is a monopoly.  They will do what it takes to eliminate the competition, especially if it is as easy as  subverting US law enforcement with bribes.  

If you think the law enforcement doesn't take bribes, just have a look at the 'massage' and 'escort' sections of the phone book in any city where prostitution is illegal.  What is obvious to you is also obvious to the police, but they aren't acting.  Why in the world not?  Could it possibly be because someone pays them off?  

And if someone else pays them for getting competition eliminated from business, expect that it will happen.

Cryddit.

My concern with this is that they start rigging the price just like they do in forex.

oh please, dont be stupid now. Those Forex are nothing but fraud, you're not actually trading shit, rather tokens ...

That makes no sense at all. Even if they magically paid off law enforcement in every jurisdiction to eliminate the noncompliant competition they still wouldn't be able to maintain a monopoly for long if there was a profit in it. New money will enter the chase for profit. It's also still possible for anyone to use any exchange worldwide. I've had very good luck with BTCe so they won't be seeing any of my funds. I'm going to completely pass on the services of any U.S. exchange from now on.

Does BTCe require any form of verification? I dont trust an entity that keeps my info while remain pseudonymous

I've had an account there since they opened and never verified anything. I guess you should only buy coins from places that log the coins address right next to a photocopy of your government issued ID. Have fun with that. I don't feel like wasting time tumbling every coin I buy.

It makes sense because it makes the barrier to entry high.  

The big fish can't avoid competing with each other, but by getting laws passed and law enforcement coming down on the whole "regulated money transmitter" thing they can make it require a half-million dollars or more (and half a year's delay, by which time they hope to be dominant) to get into the game.  

First of all, they want to get rid of as many people as they can who are currently established and making money in the business they want to own.  Regulatory compliance plus a heavy hammer on the unregulated means they can eliminate most competitors who would otherwise have first-mover advantages (except the Winklevii themselves weren't quite ready in time to do that).  After that, the big fish need only worry about each other. 

They can't eliminate competition completely, but they won't tolerate having to compete with insignificant little people who don't have millions to throw around.  

They're taking theft very seriously... look for their next app soon

http://i851.photobucket.com/albums/ab76/aimhighdj/Creditcardstolen.jpg

I don't understand why yanks feel that the entire world revolves around them. It's not possible for anyone or any business to make a monopoly out of Bitcoin trading or exchanging. My point was that it's not possible for that stupid bully country America to control anything about Bitcoin. They can pass all the laws they want and sit on commerce and industry until their 3 hundred million people starve to death. The other 7 billion people will play in a different sandbox.

I don't see the big deal in this other than having the Winkelvi name attached. Don't get me wrong I'm glad they're getting involved and are promoting bitcoin but I'm more concerned about decentralized exchanges. I'm sure this is just a ploy for them to scoop up massive amounts of bitcoins easily through taking their cut of fees.

Dude this is literally the only way to have all these clueless old wealthy guys getting involved with Bitcoin. They wouldn't invest any other way unless there is a regulated certified serious exchange.

Yes, exactly.  This is a really big deal.

The Winklevii are trying to get old money/Wall Street money to pour in more dough into Bitcoin.  Trade it up, down, sideways, long, short, etc...

Only way you can do that is with fully licensed and regulated exchanges.  They don't/won't put their old bank money into a Slovenian exchange like BitStamp or a Bulgarian exchange like BTC-E.

But you launch a legit/licensed suit and tie exchange based in the financial capital of the world New York, and basically make the "Nasdaq" of Bitcoin, you best believe they will line the fuck up.

You know what happens when those bigtime hedge funds get involved....

https://simonsblogpark.com/onlinegambling/wp-content/uploads/2014/07/bitcoin_litecoin_casino_gambling.gif

They are onto something. This could be the biggest exchange of them all. Overpowering each and every competitor by far. Oh and before I forget, the twins are working towards getting old money. The twins want to excavate all of the big timers funds/a portion and pour it into their exchange. When you have your own ticker symbol coming and are on the Nasdaq, BTC will go in only one direction. That direction being up.

It's big talk so far. If Gemini is even half as good as they claim, it will be an absolute winner
Wait and see

Well its not that difficult to beat any of the exchanges we've seen so far, considering the biggest one was run by Magic the Gathering card traders.

I think the regulated exchange laws and KYC stuff have pretty much become international at this point.  I don't know how it looks where you are, but in pretty much every nation where I have correspondents who know about such things, the basic rules are pretty much as they are here.  You have to get licensed to run an exchange, and ensure that customers provide ID to open a bank account or use a trading account, whether you are in New York, Hong Kong, or Cartagena.  I'm not sure how it works in Istanbul or Cairo, but I expect it's the same. 

Cryddit

I don't think that's true. It used to be used for trading MTG cards but the site was bought by Karpales and changed to exchange bitcoin.

Of course they have some kind of FATF law in most places. They aren't all the same and none are voted for, enacted, or enforced by the U.S. except those in the U.S. American business monopolies are inconsequential outside of the U.S. The great thing about Bitcoin is its ability to be used from anywhere in the world to fund an account anywhere in the world.

Great idea that may help make a difference to adoption
Believe it when I see it, though

We have been waiting for a long time, though. :)

lol

Man I cant wait to see that image again in one of the exchanges. Remember in MT Gox the moon man when we reach 1k? I hope winklevii put a moon man too in gemini when we hit 10k :p

It's the same from where I came from as well. The minimum is scanned copy of government issued ID when making fiat withdrawals. Although the government didn't spell out the exact details but exchangers in general will by themselves make it compulsory to avoid the legal aspect that arises later part.

Those guys are still trying to figure out how to unload their Bitcoins. They own enough that they'd crash any existing exchange if they sold. Their proposed ETF scheme was a dump. Their exchange scheme is probably a dump, too.

They would have done better if they'd just been selling steadily all year.

That what all stocks are. Nothing new except Bitcoin doesn't have Wall Street to dump them on...yet.

Well not technically but we have the equivalent of Bitcoin wall street walles: early adopters. These dumb lucky cunts can dump on us anytime they want and crash it.

Weak hands have been saying that exact thing since the 1000x run up to one dollar. They will be saying that when price reaches $10k.

I cant wait to see what the hell they come up with after we reach ATH again. It will be historical to see Peter Schift and the rest of clueless old people having to admit they are wrong.

I like the waving Bitcoin flag you choose there
I agree that big money will come when players are seen as more trustworthy as far as I can see the old capital will likely wait for the Winkevelli to have something running before putting in more investment into Bitcoin as a financial instrument
R@D is seperate but once we have nice hedge funds it should be good for price :)

Fact: The general consensus is that Winklevii hasn't spent ANY of their BTC holdings.

Fact: https://www.youtube.com/watch?v=VHSRTorquVk

I think they will just do it for the value of their own coins.

Great tactic from them.

There is no point in getting 1% of all BTC, just to sell it.
If they just wanted to play the market, they could have done that with daytrading and never accumulating nearly as much as 1%.

But they are there for the very long run, which in return will end up benefiting all investors and holders and thus the coin itself.

Of course, they're doing it for the value of their own coins!  You think they're doing this from the kindness of their hearts.

That they're the Mother Theresa or Ghandhi of Bitcoin or something?!

This is business, baby.  They want to take that Facebook settlement money turn it into Bitcoin moon money and shart it all over Zuckerberg's face.

http://1u88jj3r4db2x4txp44yqfj1.wpengine.netdna-cdn.com/wp-content/uploads/2009/02/facebookfraud_wideweb__470x3360.jpg

Or take Zuckerberg's money and prove they have no business acumen. They have a unique opportunity to show the world that Zuckerberg was right and their only claim to fame is old frat brothers that graduated from Harvard law school concentrating in tort law.