Bitcoin has a bit of an odd reputation in America. While the cryptocurrency does offer some interesting new options for gaining and spending money, it also has a negative reputation because of its use by shady groups like online drug site Silk Road and hacker group Anonymous. Part of the problem is that the system isn't regulated, which causes many in the government not to trust it. However, two notable Bitcoin entrepreneurs are looking to help the government learn to trust the system.
The Winklevoss twins have a bit of tech-based history behind them. After suing Mark Zuckerberg for "stealing" their social media site idea - and winning a gold medal for rowing in the Olympics - the two wanted to stay in the tech business. They began to pursue the potential of Bitcoin. They first invested in BitInstant, a Bitcoin payment processor. However, the company got in trouble for working with Silk Road and closed down.
The two then started Winkdex, a Bitcoin price tracker that used data from 7 different Bitcoin exchanges to determine the daily trading value. Now, they are looking to create their own Bitcoin exchange. The twins have been gathering engineers and designers to build Gemini, the first USA-based Bitcoin exchange, according to Engadget.
But isn't that counter to what Bitcoin stands for; a currency free of regulation? The Winklevoss twins believe that their exchange will succeed because they'll have "the backing of both a New York-based bank" and are "likely to get the blessing of Governmental types, too."
The Winklevosses haven't named the bank they're teaming up with yet, but it's certainly a certified American bank.
Why should investors put their money into Gemini?
Engadget notes that, "In addition to the obvious promotional gains, the partnership means that your money won't leave the country and is also eligible for federal deposit insurance - so users can trust their cash is safe."
Gemini won't launch until Ben Lawsky of the NYC financial services market approves it. However, the Gemini site is up, and potential investors can register their interest in the product.
