Winklevoss Twins Go Into The Bitcoin Business

04/11/2013 05:10 pm ET
  • Alexis Kleinman Deputy Managing Editor Of Impact & Innovation, The Huffington Post

Bad news for all the hackers and libertarians out there supporting the bitcoin movement: Your favorite currency seems to have fallen into the wrong hands.

Venture capitalists Tyler and Cameron Winklevoss claim to own about 1 percent of all bitcoins in existence, about $11 million worth.

It's utterly unsurprising that the Winklevoss twins, who are famous for suing Mark Zuckerberg over the idea for Facebook, have decided to announce their investment in bitcoins at the height of public mania over the digital currency. The Winklevii told The New York Times that they're excited to get involved with bitcoins on the ground floor.

"People really don’t want to take it seriously. At some point that narrative will shift to ‘virtual currencies are here to stay,’" Cameron Winklevoss told DealBook. "We’re in the early days."

The Winklevii aren't the only investors putting money into bitcoins. Other venture capital firms are investing in both bitcoins and bitcoin-related sites, like the trading site Coinsetter.

That development is bound to irritate the currency's main demographic: people who are purposefully avoiding traditional banking. The whole point of the bitcoin is its independence and status as a currency that has not been sullied by the likes of the Winklevii.

Let the backlash begin.

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