The Winklevoss twins cut up their bitcoin key to protect their fortune – Business Insider

The Winklevoss twins cut up their bitcoin key to protect their fortune - Business Insider

Cameron and Tyler Winklevoss. Thomson Reuters

  • The Winklevoss twins, known for suing Mark Zuckerberg, embarked buying bitcoin te 2012.
  • Their bitcoin holdings are now worth $1.Trio billion, The Fresh York Times reported.
  • The twins keep the private key for their bitcoin fortune te numerous lumps te handelsbank vaults around the country.

People laughed at the Winklevoss twins ter 2012 when they began buying up bitcoin &mdash, lots of it.

The two Harvard-educated entrepreneurs bought about 120,000 bitcoins when they were less than $Ten each, using funds they got from lodging a lawsuit against Mark Zuckerberg overheen their voorwaarde that they came up with the idea for Facebook.

But nobody’s laughing at Cameron and Tyler Winklevoss anymore. They confirmed ter an vraaggesprek with The Fresh York Times that they had held on to their bitcoins spil the price has skyrocketed &mdash, a coin wasgoed worth about $17,800 on Tuesday afternoon.

Their bitcoin fortune is now worth about $1.Trio billion, The Times reported.

“Wij’ve turned that laughter and ridicule into oxygen and wind at our back,” Tyler Winklevoss told The Times.

A fortune that large needs protection. Because bitcoin is a digital currency, it can be stolen ter a hack. Earlier this month, for example, one cryptocurrency-mining service said hackers had taken $80 million te bitcoin.

The Winklevoss twins use what’s called a “cold wallet” system to store their bitcoin fortune.

Bitcoin resides te electronic “wallets,” and each has a private key. If someone has that key, they can take your bitcoin. Printing the key &mdash, and keeping it off the internet &mdash, helps protect it from people attempting to steal it.

The Winklevoss twins take it one step further &mdash, they cut up a paper printout of their private key, then stored the chunks te banks around the country.

Here’s how The Times explains it:

“The Winklevosses came up with an elaborate system to store and secure their own private keys. They cut up printouts of their private keys into lumps and then distributed them te envelopes to safe deposit boxes around the country, so if one envelope were stolen the thief would not have the entire key.”

The Winklevosses say they use a similar system for Gemini, the bitcoin exchange they created that’s licensed ter Fresh York to hold the cryptocurrency on behalf of banks and traders. That’s because if the Winklevosses were to lose their bitcoin billions, that would be a tragedy for them &mdash, but if their exchange were hacked, there would be a lotsbestemming of angry financiers looking for answers.

3 thoughts on “The Winklevoss twins cut up their bitcoin key to protect their fortune – Business Insider”

  1. Instantaneously converting bitcoin through a payment processor is not “accepting bitcoin.” It is accepting fiat, both functionally and literally.

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