The twin brothers who lost to Mark Zuckerberg, the CEO of Facebook, for the control over the social media website have come out to be bitcoin billionaires.
Cameron and Tyler Winklevoss took a risk on the currency four years ago with an investment amounting to $11m – the sum of which they received from a settlement amounting to $65m from Zuckerberg in 2008.
The twins claimed that Zuckerberg stole their concept for Facebook and sued the CEO.
However, the $11m investment has since grown by nearly 10,000 percent, making the investment the first billion-dollar return that is made by an investor of the cryptocurrency.
Despite its success, however, bitcoin has sparked many debates in recent years, with critics dubbing it a “bitcoin bubble.”
In September, Jamie Dimon, the JPMorgan Chase chief executive, called cryptocurrencies as a “fraud,” which caused its value to slip.
Other heavyweights including Lloyd Blankfein, the Goldman Sachs chief executive, have also come out against the cryptocurrency, while the Federal Reserve has already issued a warning regarding its financial stability.
It is true that its price has “yo-yoed” since its creation. On Saturday, the controversial asset grew back passing the $11,000 mark for the first time since Wednesday, which is the time when the cryptocurrency surpassed the mark.
Such gains have seen early supporters including the Winklevoss twins reap the rewards.
The return of the brothers has not been revealed although it is reckoned to be about 100,000 bitcoins, a number that will further enhance their re-brand as entrepreneurs of bitcoin.
In 2016, Tyler Winklevoss informed reporters that the currency could already be worth trillions and that it was “like a better version of gold.”
Other well-known investors of the cryptocurrency include Charlie Shrem, an infamous entrepreneur, who aside from being an early supporter, took a two-year prison sentence for accusations relating to money laundering.
The secretive inventor of the Bitcoin currency is still unknown.
In 2009, bitcoin became a decentralised digital currency. It is both created and held electronically. The cryptocurrency’s latest success can be partly attributed to Asia, with Japan legalising it as an official method of payment recently.
A growing number of other countries are currently getting regulators to examine bitcoin and investing in blockchain, which legitimises the cryptocurrency. It is not supported by any central bank.