In their most recent endeavor, Cameron and Tyler Winklevoss are looking to move bitcoin ($273 USD) further into the mainstream by creating a bitcoin exchange in the U.S. Reportedly titled “Gemini,” they are heralding the project as the “Nasdaq for bitcoin.” Could a new, regulated bitcoin exchange save the digital currency from falling prices?
What is a Bitcoin Exchange?
If you’ve been keeping up with the news in the financial or payments industries over the past two years, you’ve likely heard of bitcoin. Since bitcoin is an entirely digital currency, the only place to buy and trade them is through a bitcoin exchange.
Exchanges have been around for almost as long as bitcoin itself. The Winklevoss twins are not the first to consider opening an exchange and cashing in—there are hundreds of bitcoin exchange sites all around the world. Mt. Gox was the premier site for acquiring and holding bitcoins, until a massive security breach caused the business to lose millions of dollars. But does that mean that the Winklevoss twins will suffer the same fate?
This Exchange Will Be Different
Mt. Gox proved that hackers and cybercriminals love to target bitcoin. It’s easy to steal, nearly untraceable, and has massive potential to soar in value. Because Mt. Gox was unprotected and unregulated, it was an easy target. However, the team at Gemini claim that their exchange will be a safe and secure place to buy, sell and store bitcoins.
The Winklevoss twins seek to do this the right way. The New York Times reports that they are coordinating with New York’s state government to get the proper approvals and taking their time to set up an infrastructure that will necessitate the needs of a bitcoin exchange. As bitcoin enthusiasts themselves, they seek to take the digital currency to the next level and make it a household name.
Why Bitcoin Needs Saving
Bitcoin came on strong, seeing prices rise to more than $1,000 per coin in recent years. However, 2014 proved to be less than impressive, with values dropping down to a mere $200. As consumers worry about financial safety and the volatility of the bitcoin market, digital currency will continue to upset investors and entrepreneurs.
However, there is still hope. A regulated, secured exchange could generate more interest from investors, and could improve the circulation and growth of bitcoin. With more people involved, more brands could take notice to attract more consumers. The need for a steady resource for bitcoin is apparent. But it remains to be seen if the Winklevoss twins can provide the solution.
Instabill Believes in Bitcoin
Instabill is a proponent of digital currencies and provides bitcoin merchant accounts for cryptocurrency enthusiasts. Speak with a live representative today about opening a merchant account by selecting the live chat option below or calling us at 1-800-318-2713.