Winklevoss Twins Are Cutting their Bitcoin Key to Protect Their $1.3 Billion Worth Fortune
In an elaborate effort to protect their digital fortune, the Winklevoss twins have decided to cut their Bitcoin private key into pieces and have each piece locked up in different bank vaults across America.
The twins have reportedly bought roughly 120,000 Bitcoin when they costed less than $10 each. In hindsight, it was a bold move when they started buying Bitcoin in 2012 that eventually proved to rewarding considering the fact that Bitcoin is expected and likely hit $20,000 per token in 2018.
At the current rate, the Winklevoss twins now have approximately $1.3 billion worth of Bitcoin.
Given the nature of cryptocurrencies, Bitcoin is kept in an electronic wallet, that can only be accessed with the matching private key or password. Theoretically, anyone who gets ahold of the corresponding private key can easily access their digital fortune and in turn, be able to transfer it to their own controlled wallet.
As part of precautionary measures, the twins have decided to cut up their Bitcoin wallet private key and proactively stored each pieces in various safety bank vaults. Should anyone happen to steal one key, it requires all the other keys in order to access the account.
The twins are infamous for suing the Facebook founder Mark Zuckerberg alleging him for stealing their product idea for a social networking site. Eventually, the two parties reached an amicable $65-million settlement. Some of the proceeds of the said settlement were then used to buy more Bitcoin in 2012.
For most people, what they did with the settlement originally made them a laughing stock, but the twins were unbaffled as did not mind people around them.
More recently, the twins tried to create an ETF or an Exchange Traded Fund for Bitcoin, which was designed to open it up to institutional investors. Such efforts initially failed due to the US Securities and Exchange Commission rejecting their application, citing the possibility of fraud.
Nevertheless, the investment by the Winklevoss twins seem to be a wise move as it did not only propel the adoption and interest in the cryptocurrency, but also helped lay out the foundation as to how startup companies could work with regulatory bodies especially during the nascent stages of cryptocurrencies.