Bitcoin is a fascinating digital currency. Its almost mythical origin story combined with the promise of decentralizing the financial system makes for a great story. Bitcoin Billionaires, however, doesn’t tell that great story.
I recognize the challenges that come with writing about an emerging technology. Bitcoin’s presumed inventor, Satoshi Nakamoto, is nowhere to be found. Bitcoin’s record keeping technology, aka the blockchain, has become a buzzword for modern privacy advocats and fintech entrepreneurs. Over the years, Bitcoin forked many times over to create an ecosystem of improved mutations of the Genesis Block, notably Bitcoin Cash and Bitcoin Gold. It also inspired a number of new cryptocurrencies along the way.
That being said, Bitcoin Billionaires – A True Story of Genius, Betrayal And Redemption is mildly entertaining hackwork. Amazon’s recommendation algorithm put this book on my radar. The title seemed clickbait, but I usually approach books with an open mind. As I skimmed the sales page, learning more and more about its content, I became quite excited to read Bitcoin Billionaires. I wanted to learn more about the history of Bitcoin, who was driving the technology and where sound development might take it. Cryptocurrencies will become part of our financial future. Understanding its roots, knowing its key individuals, and piecing together the milestones that got us where we are today (a single Bitcoin is worth $37,431.29 according to CoinMarketCap) might inspire me and other individuals to prepare for a better financial future. Bitcoin Billionaires answered none of it. Instead the author appeared to use his platform to brown-nose the main protagonists Cameron and Tyler Winklevoss.
Bitcoin Billionaires appears to start out where The Accidental Billionaires ended. I wasn’t aware of the connection or read the book, but I’ve seen the movie adaptation “The Social Network”. For a few awkward chapters, the author tries hard to paint the picture of Cameron and Tyler Winklevoss as upstanding, hard-working heroes that made the unfortunate encounter with an evil, self-absorbed software prodigy, who pulled one over them. This unfortunate encounter left them $65 million – arguably the foundation for the Winklevii future successes in crypto-finance.
The author introduces a variety of characters associated with BitInstant, an early exchange platform for Bitcoin, which is at the center of Bitcoin Billionaires. The Winklevii twins ended up investing in the company and its founder Charlie Schrem. In a predictable pattern, the author continues his love musings about the Winklevii twins while degrading all other characters. This is really where the book plateaus – a back and forth about meetings, running BitInstant, promoting Bitcoin, etc. There is no mention of the actual technology that drives Bitcoin. Let alone any mention of crypto competition, e.g. Kraken (2011), CoinBase (2012) or Binance (2017). BitInstant was founded in 2011 and ceased operations in 2014. Yet the author rides on this single, shadow platform as if it had any meaningful impact on the proliferation of Bitcoin. Gemini, founded by the Winklevii twins, and ShapeShift, founded by Erik Voorhees, do make it into the book, but again without much detail on the technology or startup history. Furthermore, the author fails to mention any other Bitcoin Billionaires, e.g. Sam Bankman-Fried, Chris Larsen or Brian Armstrong among many others.
Altogether Bitcoin Billionaires left an impression of tabloid writing style meets not knowing anything about cryptocurrency. It doesn’t tell the story of Bitcoin – the technology. Billionaires, who made their fortune from investing in Bitcoin, are nowhere to be found in this book. And there is nothing, that brings together all the random excerpts about the Winklevoss’ brothers.
The lesson is this: buy cryptocurrencies, but don’t buy Bitcoin Billionaires.*
(* For obvious reasons, this is not to be considered financial advice. Invest at your own risk. Investor discretion is advised.)