Bitcoin Billionaires

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Bitcoin Billionaires: A True Story of Genius, Betrayal, and Redemption
Bitcoin Billionaires.jpg
First edition
AuthorBen Mezrich
CountryUnited States
LanguageEnglish
Subject bitcoin, cryptocurrency
Genre Non-fiction
Publisher Flatiron Books
Publication date
May 21, 2019 (2019-05-21)
Media typePrint
Pages288
ISBN 978-1250217745

Bitcoin Billionaires: A True Story of Genius, Betrayal, and Redemption is a 2019 book by Ben Mezrich. A sequel to The Accidental Billionaires , the book traces Cameron and Tyler Winklevoss' journey into the world of cryptocurrency, investing in bitcoin and encountering early adopters Charlie Shrem, Roger Ver, Erik Voorhees, Naval Ravikant and Dan Kaminsky, in the face of mounting scrutiny from government regulators and the financial establishment. [1]

Contents

Sources

Mezrich knew the Winklevoss twins from researching The Accidental Billionaires. Initially viewing them as the "bad guys", his perception changed over the course of writing the book and they stayed in touch. In 2017, after reading the New York Times article by Nathaniel Popper, How the Winklevoss Twins Found Vindication in a Bitcoin Fortune, Mezrich emailed them and they shared their story with him. [2]

Content

The story begins at the conclusion of the Winklevoss' lawsuit with Mark Zuckerberg in 2008. Both parties agree to a settlement, the twins receiving $20 million in cash and $45 million in Facebook stock. Neither is satisfied with the outcome.

With their new liquid capital, the twins found Winklevoss Capital Management, with the goal of investing in tech startups. After promising meetings, they discover they are considered pariahs. Silicon Valley startups, fearing reprisals from Facebook, don't want to be associated with them.

In summer 2012, during a party in Ibiza, the twins are approached by David Azar, a friend of Charlie Shrem's, who tells them about a new method of online payment with better privacy and transaction speed: bitcoin.

After meeting Shrem in Brooklyn, the twins become the largest investors in his bitcoin exchange, BitInstant. They acquire over $2 million in bitcoin or roughly 1% of all bitcoins in existence. The twins become ambassadors for bitcoin, attempting to reverse stigma due to its initial association with Silk Road. This culminates in them delivering the keynote at the 2013 Bitcoin conference.

As CEO of BitInstant, Shrem becomes a crypto celebrity, travelling with the twins and giving presentations to potential investors and interviews to media. Shrem is torn between the influence of Roger Ver, another early investor in BitInstant with strong libertarian views, and the twins' insistence to adhere to government regulations. Shrem's work declines as he descends into partying and drugs and he is eventually arrested at JFK airport. The twins are subpoenaed by the United States Attorney for the Southern District of New York, to speak at a public hearing on the future of cryptocurrency.

Parts of the book center on isolated moments related to bitcoin, such as describing the lengths the Winklevosses went to securing their bitcoins, described as a "reverse heist", and the 2012–2013 Cypriot financial crisis.

These events precede the 2016 introduction of the Lightning Network. [3] Moreover, the now widespread utilization of artificial intelligence [4] within the bitcoin network and crypto trading. [5]

Critical reception

The book was widely praised by critics upon its release and it is generally rated between four and five stars across a range of reviews online. In a published review by Steven Poole for The Guardian, he commends Menzies for writing the book with a "slick beauty"that is structured as a series of dramatic sequences. Moreover, Poole describes the book as being as novelistic and painless to read as could be possible about the subject of the modern tech world. [6]

Related Research Articles

<span class="mw-page-title-main">Tyler Winklevoss</span> American businessman and rower

Tyler Howard Winklevoss is an American investor, founder of Winklevoss Capital Management and Gemini cryptocurrency exchange, and former Olympic rower. Winklevoss co-founded HarvardConnection along with his brother Cameron Winklevoss and a Harvard classmate of theirs, Divya Narendra. In 2004, the Winklevoss brothers sued Mark Zuckerberg, claiming he stole their ConnectU idea to create the social networking service site Facebook. As a rower, Winklevoss competed in the men's pair rowing event at the 2008 Summer Olympics with his identical twin brother and rowing partner, Cameron.

<span class="mw-page-title-main">Cameron Winklevoss</span> American businessman and rower

Cameron Howard Winklevoss is an American cryptocurrency investor, former Olympic rower, and cofounder of Winklevoss Capital Management and Gemini cryptocurrency exchange. He competed in the men's pair rowing event at the 2008 Summer Olympics with his rowing partner and identical twin brother, Tyler Winklevoss. Winklevoss and his brother are known for co-founding HarvardConnection along with Harvard classmate Divya Narendra. In 2004, the Winklevoss twins sued Facebook founder Mark Zuckerberg, claiming he stole their ConnectU idea to create the social networking site Facebook. In addition to ConnectU, Winklevoss also co-founded the social media website Guest of a Guest with Rachelle Hruska.

<span class="mw-page-title-main">Bitcoin</span> Decentralized digital currency

Bitcoin is the first decentralized cryptocurrency. Nodes in the peer-to-peer bitcoin network verify transactions through cryptography and record them in a public distributed ledger, called a blockchain, without central oversight. Consensus between nodes is achieved using a computationally intensive process based on proof of work, called mining, that requires increasing quantities of electricity and guarantees the security of the bitcoin blockchain.

<span class="mw-page-title-main">Cryptocurrency</span> Digital currency not reliant on a central authority

A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it.

<span class="mw-page-title-main">Charlie Shrem</span> American entrepreneur

Charles Shrem IV is an American entrepreneur and bitcoin advocate. He co-founded the now-defunct startup company BitInstant, and is a founding member of the Bitcoin Foundation. In 2014 he was sentenced to two years in prison for aiding and abetting the operation of an unlicensed money-transmitting business related to the Silk Road marketplace. He was released from prison in 2016. In 2017, he joined Jaxx and served as its chief operating officer, and founded cryptocurrency advisory CryptoIQ.

<span class="mw-page-title-main">Winklevoss Capital Management</span> American venture capital firm and family office

Winklevoss Capital is a family office founded in 2012 by Tyler Winklevoss and Cameron Winklevoss. The firm invests across multiple asset classes including seed funding and infrastructure to early-stage startups. The company is headquartered in New York's Flatiron District.

Blockchain.com is a cryptocurrency financial services company. The company began as the first Bitcoin blockchain explorer in 2011 and later created a cryptocurrency wallet that accounted for 28% of bitcoin transactions between 2012 and 2020. It also operates a cryptocurrency exchange and provides institutional markets lending business and data, charts, and analytics.

Circle is a peer-to-peer payments technology company that now manages stablecoin USDC, a cryptocurrency the value of which is pegged to the U.S. dollar. It was founded by Jeremy Allaire and Sean Neville in October 2013. Circle is headquartered in Boston, Massachusetts. USDC, the second largest stablecoin worldwide, is designed to hold at or near a stable price of $1. The majority of its stablecoin collateral is held in short-term U.S. government securities.

<span class="mw-page-title-main">Roger Ver</span> Early promoter of Bitcoin (born 1979)

Roger Keith Ver is an early investor in Bitcoin, Bitcoin-related startups and an early promoter of Bitcoin. Ver has sometimes been referred to as "Bitcoin Jesus". He now primarily promotes Bitcoin Cash as Ver sees it as fulfilling the intended and original purpose of the "Bitcoin White Paper", first published in 2009 by Satoshi Nakamoto, in which Nakamoto referred to Bitcoin as a peer-to-peer electronic cash system.

<span class="mw-page-title-main">Blockstream</span> Blockchain technology company

Blockstream is a blockchain technology company led by co-founder Adam Back, headquartered in Victoria, Canada, with offices and staff worldwide. The company develops a range of products and services for the storage and transfer of Bitcoin and other digital assets.

Gemini Trust Company, LLC (Gemini) is an American cryptocurrency exchange and custodian bank. It was founded in 2014 by Cameron and Tyler Winklevoss.

<span class="mw-page-title-main">Digital Currency Group</span> American venture capital company

Digital Currency Group (DCG) is a venture capital company focusing on the digital currency market. It is located in Stamford, Connecticut. The company has the subsidiaries Foundry, Genesis, Grayscale Investments, and Luno. It also formerly owned CoinDesk.

<span class="mw-page-title-main">Lightning Network</span> Payment protocol for Bitcoin

The Lightning Network (LN) is a "layer 2" payment protocol built on the Bitcoin blockchain and those of other cryptocurrencies. It is intended to enable fast transactions among participating nodes and has been proposed as a solution to the bitcoin scalability problem. It is a peer-to-peer system for making micropayments of cryptocurrency through a network of bidirectional payment channels, without delegating custody of funds.

Bitcoin was designed by its pseudonymous inventor, Satoshi Nakamoto, to work as a currency, but its status as a currency is disputed. Economists define money as a store of value, a medium of exchange and a unit of account, and agree that bitcoin does not currently meet all these criteria.

<span class="mw-page-title-main">Bitcoin Cash</span> Cryptocurrency that is a fork of Bitcoin

Bitcoin Cash is a cryptocurrency that is a fork of Bitcoin. Bitcoin Cash is a spin-off or altcoin that was created in 2017.

<span class="mw-page-title-main">Brian Armstrong (businessman)</span> Coinbase CEO and cryptocurrency billionaire

Brian Armstrong is an American business executive, billionaire, and investor who is CEO of cryptocurrency platform Coinbase. He received media attention for his policy of keeping the workplace free of political activism.

BitMEX is a cryptocurrency exchange and derivative trading platform. It is owned and operated by HDR Global Trading Limited, which is registered in the Seychelles.

bitFlyer is a private company headquartered in Tokyo, Japan and founded in 2014. It operates one of the largest cryptocurrency exchanges with 2.5 million users and develops other crypto-related technology.

Anthony Di Iorio is a Canadian entrepreneur primarily known as a co-founder of Ethereum and an early investor in Bitcoin. Di Iorio is the founder and CEO of the blockchain company Decentral, and the associated Jaxx wallet. He also served as the first chief digital officer of the Toronto Stock Exchange. In February 2018, Forbes estimated his net worth at $750 million–$1 billion.

Paxos Trust Company is a New York–based financial institution and technology company specializing in blockchain. The company's product offerings include a cryptocurrency brokerage service, asset tokenization services, and settlement services. ItBit, a bitcoin exchange run by Paxos, was the first bitcoin exchange to be licensed by the New York State Department of Financial Services, granting the company the ability to be the custodian and exchange for customers in the United States.

References

  1. MEZRICH, BEN (29 May 2019). "Everything You've Read About Harvard's Winklevoss Twins Is Wrong". Boston Magazine. Retrieved 7 January 2022.
  2. Popper, Nathaniel. "How the Winklevoss Twins Found Vindication in a Bitcoin Fortune". The New York Times. Retrieved 7 January 2022.
  3. Ward, Susie Violet. "AI And Bitcoin – A Synergy For The Future". Forbes. Retrieved 2024-01-30.
  4. "What is Lightning Network? | Get Started with Bitcoin.com". www.bitcoin.com. Retrieved 2024-01-30.
  5. "How to Use AI in Crypto Trading". JohnnyBitcoin. Retrieved 2024-01-30.
  6. Poole, Steven (2019-05-16). "Bitcoin Billionaires by Ben Mezrich review – the tale of the Winklevoss twins". The Guardian. ISSN   0261-3077 . Retrieved 2023-12-18.