Billionaires Tyler, left, and Cameron Winklevoss are believed to be two of the largest holders of Bitcoin, which they started buying when it was less than $10. Victor Besa / The National
Billionaires Tyler, left, and Cameron Winklevoss are believed to be two of the largest holders of Bitcoin, which they started buying when it was less than $10. Victor Besa / The National
Billionaires Tyler, left, and Cameron Winklevoss are believed to be two of the largest holders of Bitcoin, which they started buying when it was less than $10. Victor Besa / The National
Billionaires Tyler, left, and Cameron Winklevoss are believed to be two of the largest holders of Bitcoin, which they started buying when it was less than $10. Victor Besa / The National

Winklevoss twins: 'Bitcoin will reach $500,000'


Felicity Glover
  • English
  • Arabic

It was not until 2012 that Cameron and Tyler Winklevoss, the billionaire founders of cryptocurrency exchange Gemini, stumbled across Bitcoin while on a summer holiday in Ibiza, Spain.

When they returned to the US, they started researching the digital token that was created by Satoshi Nakamoto, the pseudonym used by the person believed to have developed Bitcoin during the 2008 global financial crisis.

And it was then that the light bulb came on and they realised that Bitcoin could be the investment of the decade, they told The National during a recent visit to the UAE to announce plans to apply for a virtual asset licence to operate Gemini in the Emirates.

“In short, Bitcoin is money that's purpose-built for the internet. It is a protocol, the same way your email works on a protocol. And when we understood that, that was a big moment,” says Tyler Winklevoss.

In 2004, the mirror twins famously sued Facebook chief executive Mark Zuckerberg, who they employed to build their social networking site, HarvardConnection, alleging that he stole their idea to create the social media platform, now known as Meta Platforms.

They settled the case in 2008 and the twins, known by the collective nickname of “Winklevii”, reportedly received $65 million in cash and Facebook shares.

It was this money that they used to invest in Bitcoin when it was less than $10 through the Japan-based Mt Gox exchange, which collapsed in 2014 after fraudsters stole about 850,000 Bitcoin from customers.

The implosion inspired them to set up Gemini in 2014, which has grown to offer more than 90 cryptocurrencies, a credit card, derivatives, staking and custodial services, among other services.

Trading volume has also reached more than $200 billion on Gemini, which is regulated by the New York State Department of Financial Services.

Now billionaires – they each have a net worth of $1.2 billion, according to Forbes estimates – and believed to be two of the largest holders of Bitcoin, they talk to The National about their crypto journey.

When was your 'aha' moment with Bitcoin?

Tyler Winklevoss: We found Bitcoin in Ibiza of all places, on holiday in the summer of 2012. We started digging into it and learning about it when we got back to the States. Pretty quickly, the light bulb turned on; there's that “aha” moment because the more we dug into Bitcoin, three things jumped out to us: Money is broken, finance is broken and the internet is broken.

Money should work like email. At the end of the day, it is information. It is simply an entry in a ledger, and why does it not work that way? It is because the money that we are used to predates the internet, was built by bankers, not technologists. Bitcoin is really the first money purpose-built for the internet. That was a big moment for us. And also, the fact that money is a social network at the end of the day and people are all connected online, so it makes sense.

What was Bitcoin’s price then and what platform did you use to buy it?

Cameron Winklevoss: So, we bought our first Bitcoin under $10. At that time, it was a combination of using over the counter brokers and also buying on Mt Gox, which was the largest exchange.

Once we were on-boarded, we could buy directly from the exchange. But it was scary. It did not have any of the controls or security precautions that you would expect from a platform today.

And while we were not injured in that process, it famously imploded not long after and that experience really informed us that if cryptocurrency and Bitcoin were going to go mainstream, we would have to build infrastructure that could support that growth.

Cryptocurrencies – in pictures

  • The crypto market, which includes currencies such as Bitcoin, pictured, has lost $2 trillion of its value in six months. Unsplash
    The crypto market, which includes currencies such as Bitcoin, pictured, has lost $2 trillion of its value in six months. Unsplash
  • The price of Ethereum, the second largest cryptocurrency by market size, has fallen by 70 per cent this year. Investors and analysts are watching to see if it will dip below $1,000. Unsplash
    The price of Ethereum, the second largest cryptocurrency by market size, has fallen by 70 per cent this year. Investors and analysts are watching to see if it will dip below $1,000. Unsplash
  • Dogecoin, supported by Elon Musk, is about 90 per cent down from May last year, yet it is outperforming Bitcoin and Ethereum in the current crash. Unsplash
    Dogecoin, supported by Elon Musk, is about 90 per cent down from May last year, yet it is outperforming Bitcoin and Ethereum in the current crash. Unsplash
  • The government of El Salvador has invested $105 million in Bitcoin. President Nayib Bukele's embrace of the cryptocurrency as legal tender is being questioned as the market crashes. Getty
    The government of El Salvador has invested $105 million in Bitcoin. President Nayib Bukele's embrace of the cryptocurrency as legal tender is being questioned as the market crashes. Getty
  • Changpeng Zhao, founder of crypto exchange giant Binance, has compared the current market turmoil to the dotcom bubble of the early 2000s. Still, the company is aggressively pursuing licensing in international jurisdictions and introducing new products. Getty
    Changpeng Zhao, founder of crypto exchange giant Binance, has compared the current market turmoil to the dotcom bubble of the early 2000s. Still, the company is aggressively pursuing licensing in international jurisdictions and introducing new products. Getty
  • Tether is the biggest issuer of stablecoins, a type of cryptocurrency pegged to a traditionally stable asset like the US dollar. Most stablecoins are meant to maintain a constant price of $1 and are backed by real reserve funds, making it easy to convert crypto investments into cash. But Tether's financial statements show that may not be true, leaving the issuer and its investors vulnerable. Unsplash
    Tether is the biggest issuer of stablecoins, a type of cryptocurrency pegged to a traditionally stable asset like the US dollar. Most stablecoins are meant to maintain a constant price of $1 and are backed by real reserve funds, making it easy to convert crypto investments into cash. But Tether's financial statements show that may not be true, leaving the issuer and its investors vulnerable. Unsplash
  • The recent crypto crash can in part be attributed to the collapse of TerraUSD, a stablecoin pegged to the US dollar through algorithms and linked to a "sister" cryptocurrency named Luna. When the price of Luna plummeted, TerraUSD also fell, creating a “death spiral” to practically zero for both coins. Unsplash
    The recent crypto crash can in part be attributed to the collapse of TerraUSD, a stablecoin pegged to the US dollar through algorithms and linked to a "sister" cryptocurrency named Luna. When the price of Luna plummeted, TerraUSD also fell, creating a “death spiral” to practically zero for both coins. Unsplash
  • On June 12 crypto lender Celsius Network said it had paused customer withdrawals, saying it needed “to stabilise liquidity and operations”. Investors are still waiting, with no signs that the current meltdown will let up. Getty
    On June 12 crypto lender Celsius Network said it had paused customer withdrawals, saying it needed “to stabilise liquidity and operations”. Investors are still waiting, with no signs that the current meltdown will let up. Getty

Is that when you started Gemini?

TW: That experience led us to ultimately solve our own problem. Bitcoin is great but the companies built on top of it are not – yet – and Gemini would be the solution to that problem. It would be a simple, easy, reliable way for folks to buy, store, sell Bitcoin and, ultimately, that has expanded to other cryptocurrencies as they have been invented.

You once said that Bitcoin was the trade of the decade. Do you still believe that now?

CW: It is still going to be the best investment of this decade. Bitcoin is similar to a honey badger. Whatever does not kill it, makes it stronger. And it has been through a lot.

We have gone through all these different phases [with Bitcoin], up to this point. And most recently, of course, the FTX SBF [Sam Bankman-Fried] fraud … Certainly, the impact on the psyche of a newer asset class and technology is enormous. The impact was large and Bitcoin went down to about $15,000. We are now back to close to $30,000, so the market has clearly processed it; it is in the rear-view mirror at this point. Bitcoin is super, super resilient. As Tyler mentioned earlier, you would have to shut off the internet to stop Bitcoin.

TW: Our bull case for Bitcoin is that it will disrupt gold. If you do the maths on 21 million in the supply of Bitcoin, the market cap of gold, let us say it is $10 trillion, maybe it is $11 [trillion], somewhere in that ballpark, that puts one Bitcoin – if it disrupts gold, and gets that market cap – at $500,000.

Watch: What happened to the Bitcoin price?

We obviously think Bitcoin does more than gold. It is programmable money; it could be the foundation for many other things that are built on top of it.

If you look at the properties that make gold valuable, Bitcoin matches each attribute or does better. The gold disruption story of Bitcoin is super powerful. We believe in it. And that is why we think Bitcoin is still, despite the crypto winter, despite the beatings and all these other headwinds, heavily undervalued.

Where do you see Bitcoin in five years’ time?

CW: We usually take a decade view on it. When we wrote a piece on the value that predicted it being $500,000 Bitcoin, we said within the decade. Is that in three years from now or nine years? The timing part is hard. But I think that Bitcoin created $1 trillion worth of value in under a decade … and spawned many huge projects such as Ethereum and an entire asset class.

If you look at the value increases in Bitcoin, it is this punctuated equilibrium where it is steady, steady, steady. And then boom – it reaches a new price level. That is the new normal. So, it could happen very quickly.

What do you see as the greatest threat or opportunity for cryptocurrency’s future?

TW: Governments can kind of slow it down and put in speed bumps or roadblocks but, ultimately, it is going to win. I find it hard to imagine any scenario 10 years out where cryptocurrency is not here … it is on a similar growth pattern as the early commercial internet, or potentially much greater because this is … not just the internet. It is the internet of money; it is supercharged.

What advice do you have for crypto investors?

TW: We cannot give investment advice. I would say conviction is really important, though. Generally speaking, in investing, patience is important. Doing business with regulated players is important. And get-rich-quick schemes are probably too good to be true.

CW: Generally speaking, if you subscribe to Bitcoin being a store-of-value type investment, then that strategy is HODL [hold on for dear life]. The same way you would HODL gold. It is a buy and hold long-term investment. That is the approach we have taken and for most people, that is probably the right approach.

Generally speaking, if you subscribe to Bitcoin being a store-of-value type investment, then that strategy is HODL [hold on for dear life]
Cameron Winklevoss,
co-founder of Gemini

It is very hard to time the market. Generally, the biggest question is, what do I buy? And then when do I buy it? How do I time it? Obviously, the big two projects right now are Bitcoin and Ether. With those two, you have a lot of exposure to the space. You can go deeper and try other things but these are great starting points.

I think a lot of times people are overwhelmed and the easiest thing is probably to start by dipping your toes in. It is hard to truly understand cryptocurrency if you do not own any, so maybe just picking up a little bit and experiencing that.

Outside of the crypto universe, what is the next thing you would bet on?

CW: I think artificial intelligence, obviously; it is buzzy right now. We are definitely looking at using AI at Gemini for a number of different things, including, customer support and developer productivity, code review and maybe even enabling trading strategies or helping people to build those strategies.

We think that the intersection of AI and cryptocurrency will be incredible – and it is going to happen very quickly.

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Turkish Ladies

Various artists, Sony Music Turkey 

APPLE IPAD MINI (A17 PRO)

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Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine

Storage: 128/256/512GB

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Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps

Biometrics: Touch ID, Face ID

Colours: Blue, purple, space grey, starlight

In the box: iPad mini, USB-C cable, 20W USB-C power adapter

Price: From Dh2,099

Neymar's bio

Total club appearances 411

Total goals scored 241

Appearances for Barca 186

Goals scored for Barca 105

Key fixtures from January 5-7

Watford v Bristol City

Liverpool v Everton

Brighton v Crystal Palace

Bournemouth v AFC Fylde or Wigan

Coventry v Stoke City

Nottingham Forest v Arsenal

Manchester United v Derby

Forest Green or Exeter v West Brom

Tottenham v AFC Wimbledon

Fleetwood or Hereford v Leicester City

Manchester City v Burnley

Shrewsbury v West Ham United

Wolves v Swansea City

Newcastle United v Luton Town

Fulham v Southampton

Norwich City v Chelsea

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EKinetic%207%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202018%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Rick%20Parish%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Clean%20cooking%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2410%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self-funded%3C%2Fp%3E%0A
Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

THE NEW BATCH'S FOCUS SECTORS

AiFlux – renewables, oil and gas

DevisionX – manufacturing

Event Gates – security and manufacturing

Farmdar – agriculture

Farmin – smart cities

Greener Crop – agriculture

Ipera.ai – space digitisation

Lune Technologies – fibre-optics

Monak – delivery

NutzenTech – environment

Nybl – machine learning

Occicor – shelf management

Olymon Solutions – smart automation

Pivony – user-generated data

PowerDev – energy big data

Sav – finance

Searover – renewables

Swftbox – delivery

Trade Capital Partners – FinTech

Valorafutbol – sports and entertainment

Workfam – employee engagement

The specs: Audi e-tron

Price, base: From Dh325,000 (estimate)

Engine: Twin electric motors and 95kWh battery pack

Transmission: Single-speed auto

Power: 408hp

Torque: 664Nm

Range: 400 kilometres

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

Paris Can Wait
Dir: Eleanor Coppola
Starring: Alec Baldwin, Diane Lane, Arnaud Viard
Two stars

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

Best Academy: Ajax and Benfica

Best Agent: Jorge Mendes

Best Club : Liverpool   

 Best Coach: Jurgen Klopp (Liverpool)  

 Best Goalkeeper: Alisson Becker

 Best Men’s Player: Cristiano Ronaldo

 Best Partnership of the Year Award by SportBusiness: Manchester City and SAP

 Best Referee: Stephanie Frappart

Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)

Best Sporting Director: Andrea Berta (Atletico Madrid)

Best Women's Player:  Lucy Bronze

Best Young Arab Player: Achraf Hakimi

 Kooora – Best Arab Club: Al Hilal (Saudi Arabia)

 Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)

 Player Career Award: Miralem Pjanic and Ryan Giggs

Need to know

The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours. 

The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.

When to go: You can climb Kili at any time of year, but the best months to ascend  are  January-February and September-October.  Also good are July and August, if you’re tolerant of the colder weather that winter brings.

Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.

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Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

UAE squad

Humaira Tasneem (c), Chamani Senevirathne (vc), Subha Srinivasan, NIsha Ali, Udeni Kuruppuarachchi, Chaya Mughal, Roopa Nagraj, Esha Oza, Ishani Senevirathne, Heena Hotchandani, Keveesha Kumari, Judith Cleetus, Chavi Bhatt, Namita D’Souza.

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Price, base: Dh183,900 / Dh249,000
Engine: 2.0L, turbocharged in-line four-cylinder /  3.0L, turbocharged V6
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Power: 252hp @ 5,000rpm / 354hp @ 5,400rpm
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Fuel economy, combined: 12.7L / 100km

World Cricket League Division 2

In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.

UAE fixtures

Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: June 07, 2023, 4:35 AM