re: Winklevoss Twins Plan First Fund For Bitcoins

The cost of business operations for MtGOX will increase dramatically. The business will have to raise the fees it charges to cover the increased costs of complying with money transferor status.

As for the Winklevoss brothers' idea. It indicates to me that they have lost confidence in Bitcoins as an investment. However, they realize there is money to be made off of other fools who want to invest in Bitcoins in the form of management fees for operating a fund that invests in Bitcoins on behalf of investors. I guess they think some people will want to invest in Bitcoins without the hassles of creating an e-wallet and engaging in the actual buying and selling of Bitcoins. And any investors will never actually own any Bitcoins so they will never show up on the Bitcoin network.

I think this is a way for the Winklevoss brothers to divest of their Bitcoin holdings without flooding the market with Bitcoins and causing the price to plummet.