Tips from the Winklevoss Twins in Zuckerberg and Balance: Working with Regulators

The twins of Winklevoss are again at the rendezvous with more dynamism on the crypto-currencies.

Despite the tumultuous relationship between Tyler and Cameron Winklevoss with Facebook, they were optimistic about the wager on the cryptocurrency of technology giant, Libra.

"[Libra] It's very positive for crypto, a Facebook-stature company talking about crypto-currencies that demystifies the word and makes people feel much more comfortable, "said Tyler.

The twins, who reportedly had discussions with Facebook before the Libra announcement, said they expect other tech heavyweights to launch similar products.

"We expect that every FANG company will have some kind of cryptocurrency project in the next two years," said Tyler.

When asked what advice they could give Facebook CEO Mark Zuckerberg, while his team and he were preparing for the Senate hearing next week, Tyler said he It was to cooperate with the legislators.

"Work with the regulators," he said. "Talk to them, you know, we went through the front door, and we tried to educate the regulators and shape the regulation in a thoughtful way, because if you make a mistake, it can hinder the door." 39, innovation, but the right regulation allows innovation. " to prosper, and we think we have reached the right balance with New York. "

It is still unclear whether the twins, who now manage the Gemini cryptocurrency exchange, will use Libra. "We will continue to evaluate, but at Gemini, we are asking permission, not forgiveness, and that's really our philosophy since the first day," Cameron said.

The Facebook announcement on Libra raised questions as to whether this would increase competition with the Winkelvoss brothers, who have been working tirelessly since 2014 to commercialize new cryptographic products. Some badysts have pointed out that Libra was similar to the Gemini Dollar, a so-called stable coin launched by the twins last year.

"We think it's a very interesting trade, because Libra, as we know, is a basket … it's tied to stable badets, while the Gemini dollar is an individual picket, so we think that there is one use case for both types of instruments, these are not apples to apples, "said Tyler. "I think a trade bitcoin-balance or a dollar-balance Gemini could actually be very interesting."

The brothers say that they remain focused on building Gemini to better compete in what is rapidly becoming a highly competitive space. Gemini recently recruited five engineers from rival Coinbase to work in a new office in Chicago.

"[Our goal] is an expansion, a global expansion … we are continuing to develop our mobile application and will probably add more badets by the end of the year, "said Cameron.

Regarding their thesis on Bitcoin, the twins said that they still saw opportunities, even with the emergence of stable pieces like Libra and JP Morgan's own digital currency.

"Our thesis is that bitcoin is gold 2.0 and therefore until it has a market capitalization of 7 trillion dollars, which is the size of gold. "It's a very underestimated badet, so I think people are waking up to that," Tyler said.

The Winklevoss brothers shared the same prediction that Bitcoin is Gold 2.0 with CNBC in December 2017 – just before cryptocurrency collapses after its record highs.

In addition, a number of gold badysts told CNBC that they remain cautious about the comparison between bitcoin and gold, referring to recent price swings and the volatility of cryptocurrency. So far this year, bitcoin has gained more than 240%.