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How about those Winkelvoss twins buying up $11 million worth of bitcoins and running up the price? That is the focus of the article by the duo of Popper and Lathman. Lack of sleep?

Popper and Lathman, while saying that the Winkelvoss twins have $11MM worth without stating a conversion rate, fail to scale that against other positions. (Over the past 3 days, that $11MM could be anywhere from 90,000 Bt to 41,000 Bt.) Then they go on to talk about some Maltese company that claims 82,000 Bt. No mention of the elephants in the room. None at all. Popper and Lathman, speak as if the Winklevoss twins have big positions.

The elephants?

A bitcoin pyramid scam that stole roughly 500,000 Bitcoins from “investors”. Those are still out there.

A bitcoin theft of 86,000 Bitcoins, possibly perpetrated by the former owner of Bitcoinica, This led to a lawsuit filed in San Francisco. Those are still unrecovered.

What this means is that around 5% of Bitcoins are in the hands of thieves and there is no recourse. So the biggest holders are those guys.

But it gets deeper. You see, there is another aspect to the lawsuit filed by Cartmell and company against Bitcoinica LLP. Note when the venture capitalists moved in on Bitcoin competitors? That’s right. They moved in, after the SF Court accepted the lawsuit. That suggests to me that a plausible reason for  this Cartmell lawsuit against Bitcoinica was that Venture Capitalists wanted assurance that they would have a venue for enforcement.

We shall see if they do or not.

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