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NY Approves New Digital Currency For Winklevoss Bitcoin Exchange (reuters.com)

Posted by msmash on from the digital-currency dept.

An anonymous reader writes (edited and condensed): The New York State Department of Financial Services has approved the application of Gemini Trust Company, founded by investors Tyler and Cameron Winklevoss, to trade digital currency ether on its bitcoin exchange, New York Governor Andrew Cuomo announced on Thursday. Cuomo said Gemini would be the first U.S.-based ether exchange, created, and operated in New York. Ether is a token or digital asset of the Ethereum platform, a public blockchain, or distributed ledger, that can execute peer-to-peer contracts automatically without the need for intermediaries. The blockchain is the underlying technology behind bitcoin. The Winklevoss twins have dubbed the exchange the 'Nasdaq of Bitcoin.' They have also developed a bitcoin exchange-traded fund (ETF) that would go by the name COIN, which regulators have yet to approve.CoinDesk has more information.

43 comments

  1. Dogecoin by sinij · · Score: 0

    Please, everyone knows that the only tangible digital currency is dogecoin!

    1. Re:Dogecoin by fuzzyfuzzyfungus · · Score: 1

      Well, I'd trust the dog far more than I'd trust the Winklevoss twins, so that's a good start.

    2. Re:Dogecoin by Hognoxious · · Score: 1

      I thought it was a misspelling of dodgycoin.

      Or perhaps it refers to Italian politicians.

      Out of all of them, I think I'd put my faith in the mutt.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  2. Simple question by Anonymous Coward · · Score: 0, Troll

    Why does anyone want a currency that is extremely volatile, can easily be stolen, and is used to cover the tracks of criminal activity?

    I suspect I'll get downmodded to -1 so people can avoid the question and pretend like it's not here. Can anyone actually answer the question rather than evading it through moderation? I don't think Slashdot is capable of giving a good answer.

    1. Re:Simple question by Diss+Champ · · Score: 1

      I think the benefits to folks opening exchanges are exactly what you are quoting as drawbacks.

    2. Re:Simple question by phishybongwaters · · Score: 1

      Because cars can be used for criminal activity, water can be used for criminal activity, guns can be used for criminal activity. So lets just toss that silly strawman right outta here. Your cash money, credit cards, and debit balance can also "easily be stolen" so again, straw man, lets ignore it. Extremely Volatile? Really? I haven't be following closely, that's a fact, but when bitcoin first appeare, and normal human beings were still a part of it I was mining coins with my GPU. At that time a single bitcoin was not worth very much. Last time I checked, it's worth more than an ounce of gold. So there, not that your AC nonsense post deserved an answer, I gave you one, not posted as AC so you can flame away. But the real short answer? The end of Bankster Tyranny, that's the entire point of digital currency, to cut out the massive bullshit banking institutions. Why is it doomed? Because they are putting bitcoin markets and trading right into the hands of the banking cartels it was designed to avoid.

    3. Re:Simple question by fuzzyfuzzyfungus · · Score: 2

      If you are looking to sell financial services more or less everything on that list is a virtue. Volatility keeps boring 'buy and hold' investors away and transaction volumes high; ease of loss encourages the users to leave actually handling the stuff to you, in exchange for some IOUs on their accounts; and utililty for...regulatory arbitrage...is of self-evident value.

    4. Re:Simple question by 110010001000 · · Score: 1

      You mean the US dollar? I don't know why, but people want it.

    5. Re:Simple question by ShanghaiBill · · Score: 1

      Why does anyone want a currency that is extremely volatile, can easily be stolen, and is used to cover the tracks of criminal activity?

      Because many of us believe that most of those "criminal activities" shouldn't be illegal in the first place.

    6. Re: Simple question by Anonymous Coward · · Score: 0

      So you support ransomware and the types of services sold through websites like silk road?

    7. Re: Simple question by Anonymous Coward · · Score: 0

      Both at the same time?

      No.

      Question: What is your currency of choice? If it's "cash", may I ask how you feel about supporting murder for hire?

    8. Re: Simple question by zlives · · Score: 1

      you mean the military? i didn't think had a choice?

    9. Re:Simple question by Anonymous Coward · · Score: 0

      Why does anyone want a currency that is controlled by a central bank cartel, can easily be stolen, and is used by drug dealers and other criminals?

    10. Re:Simple question by Anonymous Coward · · Score: 0

      Usually it's that they're actually engaging in criminal activity. (recreational drugs being the most common)

      Much less common it's that they're embarrassed about something that they do which the government as a whole doesn't actually care about, but they're afraid a nefarious agent in the government might blackmail them over.

    11. Re:Simple question by Anonymous Coward · · Score: 0

      Why does anyone want a currency that is extremely volatile, can easily be stolen, and is used to cover the tracks of criminal activity?

      I suspect I'll get downmodded to -1 so people can avoid the question and pretend like it's not here. Can anyone actually answer the question rather than evading it through moderation? I don't think Slashdot is capable of giving a good answer.

      If you want to get yourself modded up, then post the history of all your bank accounts.
      Yes, from the moment you opened them until the present day.

      Don't want to do that? Privacy, you say?
      Well, I think you have your answer AC.

    12. Re:Simple question by MightyMartian · · Score: 1

      I personally know of a guy who uses tomatoes for criminal activities... Tomatoes, hookers and blow, a deadly combination!

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
    13. Re: Simple question by ShanghaiBill · · Score: 1

      So you support ransomware

      Prior to ransomware, insecure computers were often used as spambots, pushing the cost of poor security onto others. But ransomware puts the cost of poor security directly were it belongs, and provides a strong incentive for better security.

      ... and the types of services sold through websites like silk road?

      I don't "support" these services, but I am willing to tolerate most of them. The government is using scaremongering about "murder for hire" to gin up support for the War on Drugs, and to justify regulating what women do with their vaginas.

    14. Re:Simple question by tnk1 · · Score: 1

      Banks provide actual services that you can't get with just having Bitcoins.

      On the bright side, none of these changes prevents you from using Bitcoins in the manner you are accustomed.

      In the end, neither the governments nor the Federal Reserve nor the European Central Bank nor any other national banks are controlling the value of the Bitcoin nor are they able to print more by fiat. For many, this is a big benefit by itself. Value will still fluctuate, but not due to a central monetary policy.

      The bad news is that such use will likely attract heavy banking regulation since things like markets and managed funds will attract attention from regulators.

      And governments can use legislation to make the use of Bitcoin (or any non-national currency) difficult enough to use that it loses its utility, followed quickly by its value. Even drug dealers will not want to use Bitcoin if you can't buy anything legally with it or turn it into legal currency.

    15. Re: Simple question by Anonymous Coward · · Score: 0

      So you're blaming the victims for ransomware? That's asinine.

  3. more info by Anonymous Coward · · Score: 0, Interesting

    Anyone got more info on this than what's in the summary? (and, no, I'm not going to RTFA).

    Is Ethereum any good? How does it compare to Dogecoin? What are the technical differences, and the motivation behind those differences?
    What is this Winklevossian intermediary needed for, and it is worthy of fulfilling that purpose?

    1. Re:more info by phishybongwaters · · Score: 1

      It would be much easier if you read the article, or googled it, or did anything yourself instead of expecting us to hand feed you knowledge. But... it's not a competitor to bitcoin, it's an augmentation, they work together. If you want more information..... stop being a lazy ass

    2. Re:more info by 110010001000 · · Score: 1

      OK, but is it any good?

    3. Re:more info by Anonymous Coward · · Score: 0

      I am a benefit to the community. You, on the other hand, are useless.

      Please, please: We're all useless.

    4. Re:more info by PCM2 · · Score: 1

      Or is it whack?

      --
      Breakfast served all day!
    5. Re:more info by Hognoxious · · Score: 1

      Bloody hell. Even I , with my pathetic six digits, fondly remember that one.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    6. Re:more info by Anonymous Coward · · Score: 0

      Stop being an asshole and answer his fucking question

    7. Re:more info by Anonymous Coward · · Score: 0

      After reading TFA and then googling it, I still can't make much sense of it. I think... instead of running standard crypto hashes as proof of work, it runs cycles of an abstract emulator as proof of work?

  4. Winklevoss by Anonymous Coward · · Score: 0

    Old money talks loud on Wall Street (and Washington).

  5. Article 1 by turkeydance · · Score: 1

    Section 10.

    1. Re:Article 1 by Anonymous Coward · · Score: 0

      Aha, clever.

      Counterpoint: "Winklevoss"

  6. Reuters rather uninformed by PCM2 · · Score: 1

    From the Ethereum website:

    Ethereum would never be possible without bitcoin—both the technology and the currency—and we see ourselves not as a competing currency but as complementary within the digital ecosystem. Ether is to be treated as "crypto-fuel", a token whose purpose is to pay for computation, and is not intended to be used as or considered a currency, asset, share or anything else.

    --
    Breakfast served all day!
  7. more editing, please by jlv · · Score: 1

    "to trade digital currency ether on its bitcoin exchange"

    Is this currency in the ether?

  8. Peak Bitcoin by ChunderDownunder · · Score: 1

    Is it just a coincidence that in the same week the imaginary creator of this imaginary currency was 'unmasked'?

    Or maybe Satoshi Wright's mad ramblings this week were just a stunt to generate publicity for this new service...

    1. Re:Peak Bitcoin by Anonymous Coward · · Score: 0

      You misspelled "Shithead"

    2. Re:Peak Bitcoin by mattack2 · · Score: 1

      Imaginary currency?

      Isn't the U.S. Dollar just as "imaginary"? The green pieces of paper only have value because we believe they have value.

      (BTW, I have never used Bitcoin, and don't have any plans to use it.)

    3. Re:Peak Bitcoin by Anonymous Coward · · Score: 0

      "He did it too" is not a valid defense. Just because the dollar is imaginary doesn't make it ok for Bitcoin to also be imaginary.

  9. bitcoin by Sibko · · Score: 2

    I'm seeing a lot of authority structures suddenly opening themselves up to bitcoin exchanges or trade, this coming at a time when the currency itself is nearing its built-in, fundamental limitations.

    I think there's insiders, some very rich insiders, pressuring institutions to open up to bitcoin trading so they can get a big mass of suckers in and sell on the high to them all, just before the currency becomes effectively worthless due to problems in its design.

    1. Re:bitcoin by Troed · · Score: 1

      Why do you think there are "built-in, fundamental limitations"?

      --
      it's in my head
    2. Re:bitcoin by jbssm · · Score: 1

      We don't they they exist, they do actually and factually exist.

      Bitcoin can make 7 transaction per second. Not for 1 person, or one business but for the all world. 7 transactions per second, that's it. Do you really think the world can work with 7 only transactions per second taking place?

      More dumbfounding is that, the handful of Chinese miners that control the all bitcoin network (so much for the myth that bitcoin is decentralized), don't allow that value to be changed and not only kept the network locked by their mining power in this scenario, but they went out to DDOS anyone that tried to mine blocks with a different size, taking the internet down in entire towns to do so. (http://bravenewcoin.com/news/mike-hearn-calls-bitcoins-block-size-debate-a-civil-war)

    3. Re:bitcoin by Troed · · Score: 1

      Bitcoin can, of course, make a lot more than 7 transactions per second. In general, it's best to get your Bitcoin knowledge from people who know Bitcoin :)

      The needed BIPs for implementation of Lightning Network have just been accepted.

      http://about.bitwa.la/the-stat...

      --
      it's in my head
  10. Improvement to topic labeling? by JeffreyBPetersen · · Score: 1

    It'd be nice to see stuff like this listed under "Blockchain" instead of "Bitcoin".