Bitcoin prices just got that much easier to follow
Bitcoin millionaires Tyler and Cameron Winklevoss, who rose to prominence thanks to a court case against Facebook founder Mark Zuckerberg, have launched their own online price tracker for the digital crypto-currency.
The need for such a service has been apparent for a little while now, but since the biggest Bitcoin exchange – MtGox – encountered issues and halted withdrawals in February, the general standard of RTBTC has become unreliable.
So, what does Winkdex do?
“We believe that we are establishing an accurate spot price that reflects the true value of a bitcoin and resolves the price confusion that exists due to the various exchanges,” said Cameron Winklevoss, who now heads up the company behind Winkdex as CEO. “The creation of an index that better reflects accurate pricing is the next step in wider acceptance of bitcoin as an asset class.”
Winkdex looks at the price of Bitcoin across six exchanges – including the prominent MtGox, Bitstamp and BTC-E. The price is then averaged together using a 2proprietary, patent pending Winkdex formula” that takes the volume and timing of transactions into account. Basically meaning it gives precedence to exchanges that have had more trade in the last two hours.
So far Winkdex seems to have been used to price the Winklevoss Bitcoin holdings, showing that the twins more than doubled their initial investment in the currency.
It seems that this is a smart move for the Bitcoin community as it should help regulate prices and worth, serving up an aggregated and averaged evaluation, helping cushion the blow when one country seemingly denounces it as viable – i.e. what happened in China.
What are your thoughts on the Winklevoss’ Winkdex?
Is it a good thing to happen to the crypto-currency sector? Or should it remain almost entirely unregulated in terms of its market value?
Let us know in the comments below.
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