The Winklevii move out of Zuckerberg's shadow, and into Bitcoin

Is it just media hype?

The Winklevii have announced they are going to venture out from under Zuckerberg’s lengthy shadow in an attempt to re-establish themselves as dotcom entrepreneurs.

In a headline grabbing announcement, which is as devoid of substance as it is full of Hollywood hype, the two brothers intend to set up Math-Based Asset Services LLC to sponsor a Bitcoin Trust.

This trust will float on the stock exchange, initially selling $20m worth of shares. There has yet to be an answer on whether an exchange will accept the offering and the trust that will hold the portfolio is yet to be set up.

Despite most news sites picking up on the story, there are no real financial details. If media attention was the goal here, that certainly seems to have been achieved.

The SEC filing comes with a raft of risks, many of which would be enough to deter any serious investor. This one I find especially chilling: "A decline in the popularity or acceptance of the Bitcoin Network would harm the price of the Shares."

In April the twins claimed in an interview with the New York Times that they owned 1 per cent of all Bitcoins in existence. That amounts to what was worth $11m when Bitcoin was at its peak in March but is now worth $8m.

As the SEC filling reminds us, that fall of $3m over just a period of a few months is a result of nothing more than a decline in popularity. Nothing else is keeping the Bitcoin boat afloat.

The risks don’t end there. The SEC filing warns that as "the sponsor and its management have no history of operating an investment vehicle like the Trust, their experience may be inadequate or unsuitable to manage the Trust".

The twins said in the New York Times interview their faith in Bitcoin was down to it being a finite currency, that when 2040 rolled around and the Bitcoin tap was turned off it would result in the price of Bitcoin rising ever higher.

Bitcoin, though is not as finite as people seem to think. The reason being, I can divide my Bitcoin as many times as I want. Unlike tradition currencies, which are tied to physical tender, I can very simply pay someone 00000000.1 Bitcoin.

Judging by the amount of interest Bitcoin received from amateur speculators, many of which have had little or no dealings with stocks, share or currency exchange, the Bitcoin Trust could engender a similar interest.

People should be very wary of investing in something that is buoyed along by media hype, popularity and remains an unknown quantity, beset by problems.

Winklebros. Photograph: Getty Images

Billy Bambrough writes for Retail Banker International at VRL financial news.
 

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A glossary of football’s most hackneyed phrases – and what they mean

This is the time of the season when we all get tired. Time to break out the cliches.

This is the time of the season when we all get tired. The players, poor petals, are exhausted. The refs have had enough of being shouted at. The hot-dog sellers are running out of hot dogs. And the TV commentators, bless ’em, are running out of clichés. So, between now and the end, look out for the following tired old phrases, well-worn adjectives and hackneyed descriptions, and do feel sorry for them. They know not what they are doing.

It will go right to the wire. In the case of the Prem, this isn’t even true. Leicester are as good as there. It is only true of the Championship, where three teams – Burnley, Middlesbrough and Brighton – are on 87 points each, with the fourth team miles away. Now that will go to the wire. The phrase comes from those pre-war reporters in the US who telegraphed their copy. When it didn’t get through, or they’d never filed it, being too lazy or too drunk, they would blame the technology and say, “It’s down to the wire.”

Dead men walking. This is when the pundits decide to hold a seance in the studio, taking advantage of Alan Shearer having sent us all to sleep. It also refers to Pellegrini of Man City and Hiddink of Chelsea. They have known for ages they’re dead parrots, not long for this life, with their successors lined up even while their bodies are still warm. I think a moment of silence is called for. “Dead men walking” refers only to football. Must not be used in connection with other activities, such as media. When someone is sacked on a newspaper, they immediately get sent home on gardening leave, just in case they manage to introduce a spot of subversion into the classified ads, such as: “Five underpants carefully kept; make up; red dungarees; offers considered, Kent.” (The first letters of each word give it away, tee hee.)

World class. The number-one phrase when they can’t think of any other synonyms for what was quite good. As well as goals, you now hear of world-class throw-ins, world-class goal kicks, world-class haircuts
and world-class pies in the press room at half-time, yum yum.

He’s got a hell of a left peg. That’s because he borrowed it from his mam when she was hanging out the washing.

He’s got it in his locker. The fool. Why did he leave his left peg there? No wonder he keeps falling over.

And the sub is stripped off, ready to come on. So it’s naked football now, is it?

Old-fashioned defending. There’s a whole lexicon to describe brutal tackles in which the defender kicks someone up in the air, straight to A&E.

Doing the dirty work/putting himself about/an agricultural tackle/left his calling card. Alternative clichés that every commentator has in his locker for when yet another world-class, manic, nasty, desperate physical assault is committed by a player at Sunderland, Newcastle and Norwich, currently scared shitless about going down and losing their three Bentleys.

Opened up his body. This is when an operation takes place on the field, such as open-heart surgery, to work out whether any Aston Villa player has got one. OK – it is, in fact, one of the weary commentator’s nicer compliments. He can’t actually describe what the striker did, as it was so quick, so clever, and he totally missed it, but he must have done something with his body, surely. Which isn’t even correct, either. You shoot with your feet.

Very much so. This is a period phrase, as popularised by Sir Alf Ramsey. He got it into his head he must talk proper, sound solemn, or at least like a trade union leader of the times, so instead of saying “yes” he would say “very much so”. It’s having a comeback. Listen to Glen Hoddle – I guarantee that between now and the end of the season he’ll say it ten times, whenever someone has interrupted and he wants to get back to the aperçu he was about to share with us.

Most unpredictable Premier season ever. Or so Sky is telling us, on the hour, meaning “since last season”, which was the most unpredictable one since, er, the season before that.

Hunter Davies is a journalist, broadcaster and profilic author perhaps best known for writing about the Beatles. He is an ardent Tottenham fan and writes a regular column on football for the New Statesman.

This article first appeared in the 28 April 2016 issue of the New Statesman, The new fascism