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Tech Venture Capitalist: Warren Buffet is Wrong About Bitcoin

Tech venture capitalist: warren buffet is wrong about bitcoin

Tech Venture Capitalist: Warren Buffet is Wrong About Bitcoin

Tech venture capitalist: warren buffet is wrong about bitcoin

Following Warren Buffet and his understudy Charlie Munger’s words on bitcoin earlier this week, technology-focused investor Chamath Palihapitiya has come to digital currency’s defence. Despite claiming to be a Buffet ‘disciple,’ he also states that Buffet is wrong about bitcoin.

Palihapitiya: “Not Everybody is Right All the Time”

Speaking in an interview with CNBC’s ‘Squawk Box,’ the former Facebook employee-turned venture capitalist espoused the virtues of bitcoin with refreshing insight. He also stated that Warren Buffet’s ‘circle of competence’ didn’t necessarily extend to knowledge of cutting-edge technology like cryptocurrencies.

Palihapitiya spoke in reference to Buffet and Munger’s appearance on the same CNBC segment earlier this week alongside Microsoft founder Bill Gates. During the interview himself and fellow Berkshire Hathaway executive Charlie Munger slammed bitcoin for being a poor investment choice and a ‘scum ball activity.’ Rather than take the anti-bitcoin stance of the two, the self-proclaimed Buffet ‘disciple’ spoke of the necessity of the digital asset in a post-financial crash world:

“Something like bitcoin is really important because it is not correlated to the rest of the market.”

He went on to state that he’d been an investor in cryptocurrency since 2012 and, like many other bitcoin proponents, he saw it as a hedge against the ‘traditional financial infrastructure.’ He added that it wasn’t yet clear if this was necessarily the case but this was how he and many others viewed it.

Palihapitiya then went on to recall the financial crash of 2008 relating this directly to bitcoin’s importance as an asset class. He stated that ‘everything broke down’ and ‘things we thought were hedges went away.’

Chamath Palihapitiya worked at Facebook over a four year stint that culminated in 2011. He held many management roles whilst working at the social network. The Sri Lankan-born venture capitalist started his career as an investor during his time at Facebook and following his departure continued to back projects offering a platform to innovative technologies.

The technology venture capitalist isn’t the only person to offer rebuttal to the one-sided CNBC interview from Monday. Yesterday, we reported on Tyler Winklevoss calling Bill Gates out on his bold statement about shorting bitcoin.

The Microsoft founder and multi-billionaire had said that if there was a way to short bitcoin he would do just that. Following this statement, Winklevoss was quick to take to Twitter to jog Gates’ memory that there was indeed a way to short the asset. After reminding him of the Cboe’s bitcoin Futures contracts, the founder of the Gemini exchange urged Gates to ‘put your money where your mouth is.’

Featured image from Shutterstock.

Published at Wed, 09 May 2018 22:00:03 +0000

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How a Bitcoin Whitehat Hacker Helped the FBI Catch a Murderer

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An ethical hacker breached the database of a phony darknet website offering hitman services and leaked the data. The information from the data dump helped the FBI in their investigation of a man who murdered his wife.

In November 2016, Stephen Carl Allwine, 47, of Cottage Grove, Minnesota, killed his wife in “one of the most bizarre cases ever seen,” police officers reported. The husband tried to mask the murder as a suicide, including putting a 9 mm pistol next to Amy Allwine’s elbow. However, detectives arriving on the scene identified the case as murder and collected evidence — mostly electronic devices, such as computers — belonging to Mr. Allwine. Later on, in January, investigators arrested and charged Mr. Allwine with second-degree murder based on the forensic evaluation of the confiscated electronic equipment.

In May 2016, a hacker called “bRpsd” breached the database of a controversial hitman service offered on a darknet website. The service, “Besa Mafia,” offered a link between customers and hitmen, who could register on the site anonymously. The price for a murder ranged between $5,000 and $200,000, but clients seeking to avoid fatalities could also hire a contractor to beat up a victim for $500 or set somebody’s car on fire for $1,000.

The hacker uploaded the data dump to a public internet website. The leaked files contained user accounts, email addresses, personal messages between the Besa Mafia admin and its customers, “hit” orders and a folder named “victims,” providing additional information on the targets.

The breach highlighted the fake nature of the website, which operated only to collect money from the customers. Chris Monteiro, an independent researcher who also hacked into the site, stated the owner or owners of Besa Mafia had made at least 50 bitcoins ($127,500 based on the current value of the cryptocurrency) from the scam operation.

According to a message posted by a Besa Mafia administrator and uncovered in the dump, “[T]his website is to scam criminals of their money. We report them for 2 reasons: to stop murder, this is moral and right; to avoid being charged with conspiracy to murder or association to murder, if we get caught.”

The leak of the Besa Mafia database helped the police investigating the murder of Mrs. Allwine. As the officers analyzed her husband’s devices, they discovered the suspect had accessed the dark web as early as 2014. Furthermore, investigators identified the pseudonym Mr. Allwine used on the darknet, “dogdaygod,” which was also linked to his email, “dogdaygod@hmamail.com,” in some cases. Detectives found bitcoin addresses in the conversations between Besa Mafia and Mr. Allwine, which linked the husband directly to the “dogdaygod” pseudonym, providing authorities with necessary evidence for the case.

Eventually, law enforcement agents analyzed the data dump bRpsd leaked and discovered Mr. Allwine’s email in the list. In addition, investigators found messages between the suspect and the Besa Mafia admin. According to a criminal complaint, Mr. Allwine paid between $10,000 to $15,000 to the supposed hitman service to kill his wife. The complaint detailed how Mr. Allwine had decided to have the hitman shoot Mrs. Allwine at close range and burn down the house afterward.

However, once the funds were transferred, the Besa Mafia communicator told Mr. Allwine that “local police [have] stopped the hitman [from] driving a stolen vehicle and taken [him] to jail prior to the hit,” thus rendering him unable to complete his “service.” The complaint cited Sergeant McAlister who reported that during that time, “no one was apprehended in Minnesota and western Wisconsin in a stolen vehicle and possession of a gun.”

It is likely that the ethical hacker’s data breach had an impact on Mr. Allwine’s case; on March 24, 2017, the Washington County District Court charged him with first-degree murder. In addition, officers have gathered more evidence in the case — a drug called scopolamine was discovered at 45 times higher than the recommended level in Mrs. Allwine’s body. Investigators subsequently discovered that her husband had also ordered the substance on the dark web.

The post How a Bitcoin Whitehat Hacker Helped the FBI Catch a Murderer appeared first on Bitcoin Magazine.