Winklevoss twins will secure bitcoins like gold -- in vaults

But the twins make no guarantee that they will be able to hold hackers at bay

By , IDG News Service |  IT Management

Many others, however, have racked up losses after buying bitcoins during a rapid, speculative rise to US$260 per coin in April before falling as low as $56. A single bitcoin sold for around $90 on Tuesday, according to the largest exchange, Mt. Gox in Japan.

The Winklevoss twins told The New York Times in April that they held as many as 1 percent of all of the bitcoins in circulation. There are about 11.3 million bitcoins in circulation, putting their holdings conservatively at $9 million today.

According to their plans, the trust would offer "baskets" of shares, of which each share is comprised of one-fifth of a bitcoin. The baskets would be redeemed in blocks of 50,000 shares based on an average bitcoin market price calculated from exchanges.

Send news tips and comments to jeremy_kirk@idg.com. Follow me on Twitter: @jeremy_kirk

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