Connect with us

Bitcoin

Why Did the Winklevoss Twins Go All In On Bitcoin?

The Winklevoss Twins and Bitcoin

Save for Trace Mayer, Roger Ver, Jed McCaleb, Andreas Antonopoulos, and a mere handful of other early-stage Bitcoin believers, Tyler and Cameron Winklevoss are some of the most dedicated proponents of the industry out there.

Following a successful lawsuit against Facebook’s  very own Mark Zuckerberg, the two pocketed dozens of millions. And eventually, after the two competed at Beijing’s Summer Olympics in 2008 and attended Oxford University for MBAs, they decided to make a foray into the business world. What they did was shocking to Silicon Valley and Wall Street:

They decided to allocate much of their Facebook settlement towards Bitcoin, which was then a fledgling cryptocurrency suffering from FUD from all angles. The Twins have since claimed that they purchased 1% of all Bitcoin in circulation in 2013, a rumored 100,000 BTC — now worth over $1 billion.

But why? Why did they decide to place so much money on an asset that was then seen as risky and likely nothing more than a fool’s game?

The duo, who now head Gemini Exchange and are now living out the billionaire lifestyle, recently broke down their thoughts on Bitcoin and cryptocurrency in an interview with CNN’s Poppy Harlow.

Why Go So Hard?

This week, CNN aired a Bitcoin segment, during which they featured the Winklevoss Twins. The famous twins, known for their purported involvement in Facebook and subsequent come-up in the cryptocurrency space, explained why they believe Bitcoin is the future. Like many of their contemporaries, they likened the leading cryptocurrency is an innovation as valuable as the Internet, but added an asterisk:

“Unlike the internet, which you couldn’t buy a piece of, you can actually buy a piece of this new ‘internet of money’”.

Explaining why they invested, they stuck with the script, touching on Bitcoin’s classification as a digital store of value, or, as more and more are dubbing it, “digital gold”.

Their investment thesis is that Bitcoin is “better at being gold than gold itself”. In fact, in one previous interview, one of the twins joked that the only thing that the precious metal has over their favorite cryptocurrency is a “3,000-year headstart”. Indeed, like gold, Bitcoin is scarce, relatively portable, decentralized, immutable, borderless, and censorship-resistant — a perfect digital store of value. The chart below from Grayscale Investments sums it up well.

Why Did the Winklevoss Twins Go All In On Bitcoin? 1

In the interview, they argued that Wall Street has been missing out on the Bitcoin trend, arguing that this subset of investors has “been asleep at the wheel”. Indeed. From what the public knows, the world’s biggest hedge funds missed out on a massive wealth generation event in Bitcoin.

But, this is changing. Bakkt, for instance, is poised to launch Bitcoin futures to a hyped Wall Street audience next month; and some mainstream brokerages, including those for institutional clients, are looking into opening their doors to cryptocurrency operations.

Whether or not Wall Street now sees the Winklevoss Twin’s visions remains to be seen, though.

News Source

Bitcoin

Former Microsoft Employee Found Guilty For Stealing $10M And Laundering With Bitcoin

The U.S. District Court in Seattle convicted a former Microsoft employee of 18 federal felonies. Ultimately stealing over $10 million in less than two years, the perpetrator used a bitcoin “mixing” service in an attempt to hide his actions.

18 Federal Offenses

Volodymyr Kvashuk is a Ukrainian citizen who worked full-time for Microsoft as a software engineer from August 2016 until June 2018. Before he was eventually fired, he was responsible for testing Microsoft’s online retail sales program. Kvashuk used his position to steal “currency stored value,” such as digital gift cards, according to the official Court Ruling.

After a five-day trial, the U.S. District Court in Seattle found him guilty on all 18 charges. They include five wire frauds, six counts of money laundering, two counts of aggravated identity theft, two counts of filing false tax returns, mail fraud, and access device fraud. Judge James Robart sentenced him to twenty years in prison.

During his time of illegal actions, Kvashuk transferred approximately $2.8 million worth of bitcoin to his bank accounts. He used bitcoin “mixing” services to hide the source before sending the assets.

Despite his attempts, Assistance U.S. Attorney Siddharth Valemoor said that his actions appeared rather obvious:You Might Also Like:

  • Bitcoin Plunges Below $10K Following Golden Cross, Tezos Breaking Records: The Crypto Weekly Market Update
  • US Presidential Candidate Bloomberg Suggests Cryptocurrency Regulation To Help Prevent Another Financial Crisis
  • Later Today: $40 Million Worth Of Bitcoin To Be Sold On Auction By The US Government

“[Kvashuk] hid behind his colleagues’ names, dripping fraud, and deceit every step of the way. This is a simple case, anyway, you look at it this is a crime of greed.”

During the trial, Kvashuk claimed that he was working on a special Microsoft project. He never intended to defraud the company or its customers.

Do Not Use Mixers

Out of the mentioned numerous felonies, Kvashuk’s attempt to conceal taxes caught the attention of the IRS-CI’s Cyber Crimes Unit. Ryan Korner, the Special Agent in Charge, said that his organization found the Ukrainian despite his usage of the bitcoin mixer.

In fact, Korner issued a warning against everyone who considers using such services:“In addition to stealing from Microsoft, Volodymyr Kvashuk also stole from the government by concealing his fraudulent income and filing false tax returns. Kvashuk’s grand scheme was thwarted by the hard work of IRS-CI’s Cyber Crimes Unit.

Criminals who think they can avoid detection by using cryptocurrency and laundering through mixers are put on notice…you will be caught, and you will be held accountable.”

News Source

Continue Reading

Bitcoin

After Another 3% Daily Bloodbath, The S&P 500 Wiped $2 Trillion In 4 Days: Bitcoin Price Follows In Deep Red

The last few days have been catastrophic for traditional financial markets and pretty damaging to the cryptocurrency field as well. Major global indices are charting tremendous losses while the crypto market cap lost more than $30 billion in the past week.

Major Indexes Chart Serious Losses

Over the course of just a few days, major global indexes have charted losses that are troublesome, to say the least.

Starting off with the S&P 500, it lost 3% yesterday alone and is down 7% in the past five days. Next on the list is the Dow Jones Industrial Average (DJI). Like the S&P 500, it also lost 3.15% yesterday and is down almost 5 percent in the past five days.

The Nasdaq Composite, however, has taken the biggest hit. It’s down more than 8.3% in just five days, 2.77% of which were lost in yesterday’s trading session.

While a lot of financial experts are associating the losses with fears of the spreading coronavirus, the Nikkei 225 which tracks the largest Asian companies, is down less than 4% over the same period of time.You Might Also Like:

  • Bitcoin is Not Alone: S&P 500 and NASDAQ Records New All-Time Highs
  • Up and Down May: Traditional Stock Markets Plunge as Bitcoin Records 60% Gains in May 2019
  • Opinion: The Global Market Meltdown Reestablishes The Case for Cryptocurrency as Global Macro Hedge

At the same time, gold is up more than 3% in the past 5 days, perhaps hinting at the fact that investors are trying to protect their capital turning to it as a hedge. At the time of this writing, gold is trading at around $1650 per ounce.

According to popular analyst Nicholas Merten, also known as DataDash, during the last four days alone, markets managed to erase the gains made through the past two months.

Analyst Howard Silverblatt stated that the S&P 500 alone lost about $2.14 trillion in market capitalization throughout the past four trading sessions.

Bitcoin Price Takes A Beating As Well

It’s not only the traditional markets that are plummeting this time around. Bitcoin’s price is also caught in a downward spiral. At the time of this writing, Bitcoin is trading at around $9180, which is about 4% down in the last 24 hours.

Over the past week, however, Bitcoin lost about 9% and it broke below serious support levels on the way down.

cryptocurrency_overview
Cryptocurrency Market Overview. Source: Coin360.com

As seen on the above graph, it’s the entire market that’s bleeding out and altcoins are not left out. ETH lost about 8.5%, XRP is down more than 12%, while Tezos saw 25% erased off its value.

Moreover, Bitcoin’s dominance is once again on the run. Currently standing at 64.3%, it gained about 2% during the week. This means that altcoins are losing grounds compared to Bitcoin.

News Source

Continue Reading

Bitcoin

Bitcoin Cash Price Analysis: BCH/USD sinks towards $300 as crypto carnage catches momentum

  • Bitcoin Cash downside momentum takes a breather at $330 but sellers are not ready to flip.
  • Technical indicators seem to be working together in support of the increased selling activities across the board.

Digital assets across the board are in turmoil. There is a bearish cloud across the market, threatening to erase most of the progress made in the last couple of months. For instance, Bitcoin Cash had advanced to new 2020 highs at $498. However, the losses witnessed in the past couple of weeks have seen BCH/USD plunged to levels under $350 while declines still eye lower levels towards $300.

Bitcoin Cash price is down 5% on Wednesday during the Asian trading session. From an opening value of $352, there was an attempt to push higher, however, the bulls lost control at $361.85 (intraday high). Thus leaving a gap that has since been explored massively by the bulls with losses going to the extremes of $330.09 (intraday low). At the time of writing, BCH/USD is trading at $334 amid a building bearish momentum and high volatility levels.

Unknown miner sweeps 9,000 BCH previously sent to SegWit addresses

A shocking revelation within Bitcoin Cash shows that a mystery miner has swept at least 9,000 (approximately $3 million) of ‘lost’ Bitcoin Cash, claiming the coins for his own instead of sending them back to their rightful owners. To understand this, one must go back in time when Bitcoin Cash was hard forked from Bitcoin (BTC) in August of 2017. Due to the similarities in wallet addresses, Bitcoin Cash users sent up to 18,000 BCH to SegWit addresses. The coins disappeared due to lack of compatibility between BCH addresses and BCH addresses. It is not known how many coins can be recovered, besides most of the remaining unrecovered coins were of smaller quantities.

Bitcoin Cash price technical update

BCH is seen trading within a falling wedge pattern. The price is also below the moving averages, where the 50 SMA and the 100 SMA have turned into resistance zones at $372.40 and $377.94 respectively on the 1-hour chart. The crypto’s path of least resistance remains to the downside especially with the RSI making a comeback into the oversold region. Bearish strength is also emphasized by the MACD’s drop into the negative territory. Moreover, the widening gap between the 100 SMA and the 50 SMA signals rising selling activities in the market.

Bitcoin Cash price technical update

BCH is seen trading within a falling wedge pattern. The price is also below the moving averages, where the 50 SMA and the 100 SMA have turned into resistance zones at $372.40 and $377.94 respectively on the 1-hour chart. The crypto’s path of least resistance remains to the downside especially with the RSI making a comeback into the oversold region. Bearish strength is also emphasized by the MACD’s drop into the negative territory. Moreover, the widening gap between the 100 SMA and the 50 SMA signals rising selling activities in the market.

News:source

Continue Reading
Open

Close