Can the Winklevoss twins actions be explained?

[necrita]

When the winklevosses were prudent to make a wise investment in BTC in 2012, why did they not sell a large percentage in the great BTC rally of 2013?

It's widely speculated that they own 1% of coins in circulation. Which means during the rally their BTC holdings were worth at least $100 million. When their combined net worth is about $200 million why would they not sell out. It would have increased their net worth by 50% overnight.
Did the BTC market not have enough liquidity to make them whole, if they decided to cash out a percentage of their holdings?
There are people on the forums who were apparently able to cash out $1MM worth of BTC on finex.

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[oblox]

A couple reasons I can think of:

1. Liquidity issues--they wouldn't have been able to exit a position size that large at the peak. They would have needed to sell into the rally, potentially curbing it in the process through distribution.
2. Short vs Long-term capital gains--depending on when they invested in 2012, they might not have held their positions over a year qualifying them for LT cap gains.

[techgeek]

If they sold off most of their coins over set period within those rally, I think the market could of actually collapsed going back to low $50 range or less.

When people see the reaction of a huge sell off, people are going to do the same (majority) and few will buy.

Its more of a emotional state for investors to see.

[Amph]

If they sold off most of their coins over set period within those rally, I think the market could of actually collapsed going back to low $50 range or less.

they could always buy back when the price had fall(which is the case right now), also a little sell here and there would not cause any crash no matter the amount the quantity sold

i think they didn't do it because they wanted to see how the scene would evolve from there

[Elwar]

They are looking long term to make a business out of those bitcoins which would pay out more over time than what they could sell them for.

[samson]

What makes you think they didn't sell at least some or even a big chunk of their coins ?

[gentlemand]

What makes you think they didn't sell at least some or even a big chunk of their coins ?

They need their stash to create COIN, but they did at least buy a ticket to never get into space with Richard Branson.

[minerpumpkin]

A couple reasons I can think of:

1. Liquidity issues--they wouldn't have been able to exit a position size that large at the peak. They would have needed to sell into the rally, potentially curbing it in the process through distribution.
2. Short vs Long-term capital gains--depending on when they invested in 2012, they might not have held their positions over a year qualifying them for LT cap gains.

Yeah, I think there isn't even the slightest possibility to sell about $100m on the BTC market, without causing it to crash completely. I also believe that they have a bigger vision of BTC in mind. Why double your net-worth if you can increase it by 10x? You know?

[Chef Ramsay]

What makes you think they didn't sell at least some or even a big chunk of their coins ?

If you take them at their word, they've said many times in interviews that they haven't sold a coin. I presume they relish their credibility and are pushing a big vote of confidence in bitcoin. And of course, they're already sitting pretty so they have the means to see this through and make even bigger money in the future. Also, rich folk have an ego to upkeep among their peers so being the first to create a monster US based exchange and ETF while making stacks off of it in such an emerging market, will make them superstars at some point.

[RodeoX]

You get rich thinking about money in the long term. I think they are looking at 5 - 10 - even 20 years. Sure they could have sold and bought back, but they know no more about the future than you and I.
In ten years you may have to spend $5k per coin. As long as the economy continues this pace of growth there is no reason why these prices wont happen.

Or it could all go away next year. You can use bitcoin right now as a currency, or you can hold. This is why I consider bitcoin to be a very risky investment, but the best currency available.   

[minerpumpkin]

What makes you think they didn't sell at least some or even a big chunk of their coins ?

If you take them at their word, they've said many times in interviews that they haven't sold a coin. I presume they relish their credibility and are pushing a big vote of confidence in bitcoin. And of course, they're already sitting pretty so they have the means to see this through and make even bigger money in the future. Also, rich folk have an ego to upkeep among their peers so being the first to create a monster US based exchange and ETF while making stacks off of it in such an emerging market, will make them superstars at some point.

Yeah, I agree! They don't want another "Facebook" happening right in front of them! They have enough money not to care if things go wrong, but a high incentive to do everything in their power to make sure Bitcoin succeeds - actually, we (who are invested in BTC), couldn't have it any better

[mrhelpful]

Being rich happens actually overnight, but the hindsight is whats left unsaid like putting in 11 years of hard work to build a company.

The variation of time length depends on what the type of business maybe, but that just only means they sold something existed to americans / everyone in general what existed but it in a nicer way.

Their actions are the same, since they see existing exchanges like bitstamp.

[cellard]

When the winklevosses were prudent to make a wise investment in BTC in 2012, why did they not sell a large percentage in the great BTC rally of 2013?

It's widely speculated that they own 1% of coins in circulation. Which means during the rally their BTC holdings were worth at least $100 million. When their combined net worth is about $200 million why would they not sell out. It would have increased their net worth by 50% overnight.
Did the BTC market not have enough liquidity to make them whole, if they decided to cash out a percentage of their holdings?
There are people on the forums who were apparently able to cash out $1MM worth of BTC on finex.

They are here for the long run, they know we are still on the very, very early days, the expected Bitcoin marketcap for them is on the trillions, as it has the potential for defeating VISA and the rest of electronic payment combined, thats the goal and thats what everyone that is here for long term should strive for.

[jl2012]

It's widely speculated that they own 1% of coins in circulation. Which means during the rally their BTC holdings were worth at least $100 million. When their combined net worth is about $200 million why would they not sell out. It would have increased their net worth by 50% overnight.

Why should they want to increase their net wealth, in terms of USD, by 50%?

[ensurance982]

When the winklevosses were prudent to make a wise investment in BTC in 2012, why did they not sell a large percentage in the great BTC rally of 2013?

It's widely speculated that they own 1% of coins in circulation. Which means during the rally their BTC holdings were worth at least $100 million. When their combined net worth is about $200 million why would they not sell out. It would have increased their net worth by 50% overnight.
Did the BTC market not have enough liquidity to make them whole, if they decided to cash out a percentage of their holdings?
There are people on the forums who were apparently able to cash out $1MM worth of BTC on finex.

They are here for the long run, they know we are still on the very, very early days, the expected Bitcoin marketcap for them is on the trillions, as it has the potential for defeating VISA and the rest of electronic payment combined, thats the goal and thats what everyone that is here for long term should strive for.

In my opinion, VISA has a completely different business model or function than Bitcoin. Bitcoin is a currency, and VISA is a specific payment system. VISA could even go as far as offering Bitcoin integration at some point! I don't think Bitcoin will replace, VISA, FIAT money, or anything!

[HI-TEC99]

A big reason for them not cashing out might be liquidity, but another could be limits on cash withdrawals. In 2013 BTC china and Mt Gox were the main exchanges where it was possible to dump a huge amount of Bitcoins. I think Mt Gox limited withdrawals to $1 million per year even before they started blocking cash withdrawals. I guess BTC china and all the other exchanges had limits on how much cash you could withdraw a year.

[neurotypical]

When the winklevosses were prudent to make a wise investment in BTC in 2012, why did they not sell a large percentage in the great BTC rally of 2013?

It's widely speculated that they own 1% of coins in circulation. Which means during the rally their BTC holdings were worth at least $100 million. When their combined net worth is about $200 million why would they not sell out. It would have increased their net worth by 50% overnight.
Did the BTC market not have enough liquidity to make them whole, if they decided to cash out a percentage of their holdings?
There are people on the forums who were apparently able to cash out $1MM worth of BTC on finex.

They are here for the long run, they know we are still on the very, very early days, the expected Bitcoin marketcap for them is on the trillions, as it has the potential for defeating VISA and the rest of electronic payment combined, thats the goal and thats what everyone that is here for long term should strive for.

In my opinion, VISA has a completely different business model or function than Bitcoin. Bitcoin is a currency, and VISA is a specific payment system. VISA could even go as far as offering Bitcoin integration at some point! I don't think Bitcoin will replace, VISA, FIAT money, or anything!

It doesn't necessarly mean replacing, but beating them in terms of transaction volume (which could be done without replacing them, and in return BTC would be on the trillions, at like 350K a coin).

[tss]

they are just like you and me.  they don't have a magic crystal ball to see in to the future of bitcoin price.  they do have 20/20 hindsight vision though, just like you.

[techgeek]

they are just like you and me.  they don't have a magic crystal ball to see in to the future of bitcoin price.  they do have 20/20 hindsight vision though, just like you.

yeah, but the huge difference is that they have $200 mill to blow, and we aint got anything lol.

They can afford risk while we cant, and while they are doing this its more of a science project to them. Also, they might not see the future price, but they can be ahead of the price movement at all levels if they ever get the etf finished and accepted.

[smoothie]

Or maybe they just wanted to not hold fiat currency in large quantities and they see fiat as a dying method to hold value/wealth.

Dollars and euros are just a government decreed currency that "has" value because their issuing parties say they have value.