Episode 269: Former DIA specialist Danielle Bizier talks China and personally working with Edward Snowden – SOFREP (press release) (subscription)

Guest Name(s): Danielle Bizier

Danielle Bizier is a former intelligence specialist and instructor whos worked in the Defense Intelligence Agency, and she joins us in studio as Jack Murphy hosts this informative, entertaining, and at times laugh-out-loud hilarious episode of SOFREP Radio. Danielle personally worked in intelligence with Edward Snowden, which she wrote an article for us at SOFREP.com on. She even made a recommendation for him long before any of us heard that name. Find out what her experience was working with Snowden, and her immediate reaction to learning that her former colleague had leaked massive amounts of classified NSA documents.

With Snowdens working with the Chinese of course, we then get into the subject of China, which Danielle has vast knowledge and stories on. Danielle currently works as a consultant on the private side for Black Site International, and we hope to have her back on. You can check out some behind the scenes pictures from this episode in studio on our Instagram @SOFREPRadio.

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Ian Scotto is an award winning radio producer who has had on-air and behind the scenes radio experience since 2006. He holds a degree in Radio from Hofstra University. He got his start at WRHU, the flagship station of The New York Islanders, where he hosted and did imaging for various shows on the platform, and for the station at large. He later worked for Sirius XM on various radio programming including Fangoria Radio with legendary rock icon Dee Snider, The Wilkow Majority with Andrew Wilkow, and produced Senator Bill Bradley's American Voices. He is now the producer and co-host for the leading Special Operations military podcast, SOFREP Radio, with best selling authors Brandon Webb (former Navy SEAL sniper instructor) and Jack Murphy (former Army Ranger and Green Beret.) Ian can also be found on Appetite for Distortion talking Guns N' Roses and doing voiceover work for various clients. Outside of radio, he is a fitness enthusiast with a focus on weight training and running.

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Episode 269: Former DIA specialist Danielle Bizier talks China and personally working with Edward Snowden - SOFREP (press release) (subscription)

Commissioners need to rethink encryption – LancasterOnline

Note: The following letter was sentFriday to Lancaster County Commissioners Dennis Stuckey, Craig Lehman and Josh Parsons.

I strongly urge you to reconsider the decision to encrypt police department radio transmissions before this change takes place in November.

First, the health and safety of both our Lancaster County community and the law enforcement officials who protect it are paramount.

Second, essential to the well-being of our county must be a government system that values public accessibility, transparency and accountability.

These two truths must find a way to co-exist.

Certainly, a healthy democracy and an informed citizenry here do not depend solely on public and news media access to Lancaster County police radio broadcasts. Both are, however, seriously diminished when the publics right to know is further eroded something that is becoming alarmingly common in our commonwealth and across this country.

Our newspaper has long relied on police communication to provide the public with emergency information. I consider a scanner as essential to my job as a wrench to a plumber, a longtime television journalist in Oklahoma wrote to me last Sunday. He reached out in support of LNPs July 5 editorial opposing encryption.

Think snowstorms. Vehicular accidents. Road closings. Gas leaks. Homicides. Violent protests.

Radio access enables news outlets to work hand-in-hand with first responders to keep the public away from dangerous situations, Melissa Melewsky, media law counsel for the Pennsylvania NewsMedia Association, noted in a recent LNP article. Total encryption addresses a problem that doesnt exist where the media is concerned.

West Hempfield Township Police Chief Mark Pugliese I, who chairs the county chiefs Police Advisory Board to Lancaster County-Wide Communications and represents the county Chiefs of Police Association on this issue, appears to agree.

Referring to events worldwide and expressing concern for police safety, he told you its not unusual for officers today to be ambushed. But he also acknowledged that were not getting that so much in Lancaster County.

Additionally, the chief spoke about incidents here where the public or the media interfered with investigations, in some cases by getting to crime scenes more quickly than police.

When pressed by an LNP reporter, Chief Pugliese could not cite a single situation in Lancaster County where the media interfered at a crime scene.

The chief says he is not anti-media.

Nor am I anti-law enforcement.

When the earth rumbles or a gun fires, citizens rely on police and other first responders to courageously address the emergency. They expect us in the news media to tell them what is happening. Shutting off access to information feeds distrust and anxiety; it fuels the spread of misinformation by social media commenters unbound by the journalistic standards of citing sources and confirming details.

Chief Pugliese said that the removal of public and media access to police broadcasts will make it incumbent on police to improve the lines of communication.

Experience suggests to me that will not happen; I dont see that as law enforcements primary role, and I dont see how it does either. Access to timely and accurate information that serves the public interest will suffer as a result.

Like law enforcement, we in the news media must be allowed to do the work we are trained to do. It is incumbent upon us to get it right and to be held accountable if we dont.

While all three of you are and must be concerned about police safety, Commissioner Lehman has said that blocking police communication might give officers a false sense of security and further isolate them from the community. Hes suggested a compromise of encrypting public transmissions, but allowing access to the news media.

It is certainly a better option.

I was at home July 2 and only yards away from the horrific Manor Township gas explosion that killed one man and injured others as it leveled a house, severely damaged neighboring homes and, in seconds, rattled the psyche of an entire community.

Frightened neighbors ran outside their homes, erroneously speculating about the cause of the blast. I called the newsroom and was accurately informed that it was a gas explosion. Then I walked to the scene to join my newspaper colleagues in probing more deeply as we talked with witnesses, questioned officials and provided real-time information that a county wanted and needed in that moment.

Fire and ambulance dispatches, the ones that guided us that day, are not part of the planned encryption here. At least not yet. As Chief Pugliese noted, the scrambling of police communication, and that of fire and ambulance, is becoming the national norm.

I dont think thats the way to go. I do believe a compromise can be struck, one that will allow law enforcement to do its work, and enable those of us in the news media to do ours.

We both exist, after all, to serve our Lancaster County community to the very best of our abilities.

Barbara Hough Roda is executive editor of LNP and LancasterOnline. Email: broda@LNPnews.com; phone, 717-481-7335; Twitter, @BarbRodaLNP.

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Commissioners need to rethink encryption - LancasterOnline

Ditching WhatsApp encryption will help terrorists: Facebook COO – Economic Times

SAN FRANCISCO: Responding to a call that Facebook should do away with the encryption that prevents police from accessing WhatsApp data, the company's top executive has said such a move would make it difficult to track terrorists if government gets such access.

The call for ditching the WhatsApp encryption emerged after five people were killed in an attack on March 22 when Khalid Masood ploughed his car into crowds on the bridge and tried to storm the Parliament. Masood is said to have used WhatsApp minutes before carrying out the attack.

"The goal for governments is to get as much information as possible, and so when there are message services like WhatsApp that are encrypted the message itself is encrypted but the metadata is not. Meaning that when you send me a message we don't know what that message says but we know that you contacted me," Express.co.uk quoted Sheryl Sandberg, Chief Operating Officer Facebook, as saying on Saturday.

"If people move off those encrypted services and go to encrypted services in countries that won't share the metadata the government actually has less information, not more. And so as technology evolves these are complicated conversations. We are in close conversations working through the issues all around the world," she added.

With the growing terror attacks in London and Europe, social media has come under severe criticism for not doing enough to curb online terrorism. Facebook hired an online army of more than 7,000 people which is assigned to crack down on terrorists using the site.

Facebook also has 4,500 people who work to stop any attempt from extremists to hijack the site and the company plans to hire 3,000 more later this year.

"Our Facebook policies are very clear. There is absolutely no place for terrorism, hate or calls for violence of any kind. Our goal is to not just pull it off Facebook but to use artificial intelligence technology to get it before it is even uploaded," Sandberg said.

"We are working in collaboration with other tech companies now so if a video is uploaded to any of our platforms we are able to fingerprint it for all the others so they can't move from platform to platform," she added.

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Ditching WhatsApp encryption will help terrorists: Facebook COO - Economic Times

Sheryl Sandberg defends WhatsApp’s end-to-end encryption policy – The Drum

Facebook's chief operating officer Sheryl Sandberg has responded to the suggestion that messaging apps and social networks should remove end-to-end encryption implying such a move would be a step backwards for governments looking to monitor extremism online.

The executive tackled the issue on Sunday's edition of Desert Island Discs on BBC Radio 4. She said that if Facebook-owned WhatsApp was to ditch encryption, which prevents authorities from seeing the messages users are sending to each other, then people would turn to alternative encrypted platforms; leaving governments with even less information as a result.

"The goal for governments is to get as much information as possible, and so when there are message services like WhatsApp that are encrypted the message itself is encrypted but the metadata is not. Meaning that when you send me a message we don't know what that message says but we know that you contacted me," she explained.

Following extremist attacks at London Bridge and nearby Borough Market earlier this year, British prime minister Theresa May accused tech giants of having provided a safe space for terrorism to breed. Home Secretary Amber Rudd, meanwhile, said she believed intelligence services should have the ability to get access to encrypted platforms like WhatsApp.

Facebook has stood firm on its belief that protecting private communications is one of its core principles.

"If people move off those encrypted services and go to encrypted services in countries that won't share the metadata the government actually has less information, not more," Sandberg added.

The Facebook lead admitted that as technology continues to evolve there are "complicated conversations" to be had and that her company is working closely with authorities on such issues.

Last month Facebook announced an anti-terror counterspeech programme in the UK. As part of the initiative the company will give anti-terror groups free advertising credits to promote their messages to individuals that might be at risk of radicalisation.

Speaking on the subject, Sandberg said: "Our Facebook policies are very clear. There is absolutely no place for terrorism, hate or calls for violence of any kind. Our goal is to not just pull it off Facebook but to use artificial intelligence technology to get it before it is even uploaded."

"We are working in collaboration with other tech companies now so if a video is uploaded to any of our platforms we are able to fingerprint it for all the others so they can't move from platform to platform," she added.

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Sheryl Sandberg defends WhatsApp's end-to-end encryption policy - The Drum

iStorage diskAshur2 1TB PIN-protected encrypted external hard drive [Review] – BetaNews

It's hard -- for me at least -- to get too excited about hard drives. They get bigger, they get faster, and that's about it. But the iStorage diskAshur2 is a little different. This is a 1TB USB 3.1 external hard drive with a twist.

It offers hardware-level AES-XTS 256-bit encryption -- so no software is needed -- secured with PIN authentication. As you can see from the photo, there's a PIN pad built into the drive for easy locking and unlocking, and it's compatible with Windows, macOS and Linux ("it will work on any device with a USB port!"). We've already look at the diskAshur Pro 2, but this diskAshur2drive is nearly 20 percent cheaper.

The primary difference between the Pro drive and this one is the form of encryption that's used. While the diskAshur Pro 2 is "designed to be certified to" FIPS 140-2 Level 3, NCSC CPA, Common Criteria and NLNCSA, in the case of the diskAshur2, it's the lesser, older FIPS PUB 197 validation that's in place. In both instance, however, there's AES-XTS 256-bit hardware encryption protecting data which should be more than enough for most circumstances.

FIPS 140-2 Level 3 means that the diskAshur Pro 2's circuit board has a tamper-proof design, but there are still physical protection measures in place with the diskAshur2 for added peace of mind. The protection comes from the built in EDGE (Enhanced Dual Generating Encryption) Technology which protects from "external tamper, bypass laser attacks and fault injections and incorporates active-shield violation technology." There's also security against unauthorized firmware updates, and the onboard processor "reacts to all forms of automated hacking attempts by entering the deadlock frozen state where the device can only restart through a 'Power On' reset procedure."

In short, it's secure. But what's it like to use?

In a word, great. But you're probably looking for a little more detail than that...

The iStorage diskAshur2 is designed with travelling in mind. It's pretty light at 216g, measures a pocketable 124 x 84 x 19 mm and comes with a hand carry case (the 3TB, 4TB and 5TB models are slightly heavier and larger at 325g and 124 x 84 x 27mm). There's a (short) built in USB 3.1 cable so you don't have to remember to carry one around with you, and the drive is available in a choice of four colors -- Fiery Red, Phantom Black, Racing Green and Ocean Blue. It's IP56 rated for water and dust resistance.

What's great about the drive is the incredible ease of use. Encryption usually means having to fiddle around with software, but that's not the case here; everything is built into the drive. The drive is, by default, encrypted. Plug it in, and it remains inaccessible -- and invisible to the computer -- until you enter the necessary PIN and hit the unlock button. From this point, you can manually lock the drive at any time. You can also unplug the drive and it will be automatically locked, or auto-locking will kick in after a predetermined period of inactivity. The lack of software means that it's easy to take the drive from one computer to another, regardless of the operating system it is using.

This video from iStorage gives a good introduction to the device range:

Unlocking the drive is incredibly fast -- much faster than if computer-based software was involved. In terms of performance, this is a 5,400 RPM drive offering read speed of up to 148 MBps and write speeds of up to 140 MBps -- far from earth-shattering, but this is a drive that focuses on security, not performance.

As with the diskAshur Pro 2, brute force protection means that the drive will delete its encryption key (rendering data completely inaccessible) after fifteen consecutive incorrect PINs are entered. You can create a PIN of up to 15 digits, so it should be fairly easy to create a non-guessable PIN. For those who need it, there is also the option of using a Self-Destruct PIN to wipe out the encryption key so data cannot be accessed under any circumstances. For peace of mind, there is a two-year warranty covering the device.

For the vast majority of people, AES-XTS 256-bit hardware encryption and conforming to FIPS PUB 197 should be more than enough. If the relatively high price of the diskAshur Pro 2 was off-putting to you, the diskAshur2 gives you a way to get very much the same product at a pleasingly lower price.

You can find out more and buy a drive direct from iStorage. The 1TB model is priced at 219 (262).

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iStorage diskAshur2 1TB PIN-protected encrypted external hard drive [Review] - BetaNews

House Republican: US just as focused on data security as Europe – The Hill

LAS VEGAS Rep. Will Hurd (R-Texas) said Sunday that Europe can't pretend to be more idealistic on privacy issues than the U.S. while many of its nations try to enact laws limiting encryption.

Hurd is one of a sturdy number of legislators including a bipartisan House Judiciary working group on encryption that opposeslaws allowing law enforcement agencies to access all encrypted datain the United States. Proponents believe access would helppreventand solvecrime, including terrorist-related activities.

Europe likes to act like they take privacy more severely than we do. That is patently false, he toldThe Hill at the DEF CON cybersecurity conference in Las Vegas.This notion we dont take this seriously in the U.S. is wrong.

Current encryption methods make it impossible for law enforcement to access chat apps or files from criminals in a timely manner, even with a warrant. Various U.S. law enforcement agencies have waged periodic efforts to force manufacturers to provide some form of access.

European nations including Germany and the United Kingdom have either enacted or are poised to enact these types of rules.

The terrorism challenges in Europe are really kind of tough, and they may lead the way and carry some of our water on this, said Acting Assistant Attorney General for National Security Dana Boente at the Aspen Security Forum earlier this month.

But cybersecurity experts people who design secure communication systems and those who develop techniques to hack into those systems universally believe that adding "backdoors" into encryption is a substantial national security threat. Adding new entry points into encryption makes its design far more perilous and far more likely for the system to be cracked by hackers or for the keys to be stolen.

We should be making encryption more secure, not less, Hurdsaid.

European Union courts struck down exemptions allowing the U.S. to store European citizens' data on stateside servers based on privacy concerns. But, claimed Hurd, the threats to privacy caused by an encryption rule demonstrated the EU'strue colors when it came to privacy.

Hurd has experience in security issues both as a former CIA agent and as a former security consultant, including a stint at a cybersecurity consultancy.

He said his trip to DEF CON was, in part, to keep his knowledge of cybersecurity from becoming stale.

DEF CON is the pointy end of the spear. These are the folks that are thinking about the real problems, he said.

DEF CON is the last of three cybersecurity conferences held back-to-back to back in Las Vegas each summer. While the other conferencesare targeted tocorporate cybersecurity providers or a more general security audience, DEF CON appeals to iconoclastic, individual researchers often on the bleeding edge of the field.

Being out here gives me perspective on where policy needs to go, Hurdsaid.

Hurd and fellow congressman Rep. Jim Langevin (D-R.I.) gave one presentation on Saturday and will give a second on Sunday. Those are two of the five panels being given by current government officials.

I want the people here to know that there are people in government that care about this stuff, Hurdsaid.

He said he had visited a number of DEF CON sub-conferences, known as villages, including ones focusing on hacking voting machines and automobiles, both of which he praised.

Hurd has focused on other cybersecurity issues while in office including IT modernization and workforce shortages. He said he was excited to see children as young as nine at the conference learning to hack and hopefully preparing to fill a widening skills gap of cybersecurity talent.

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House Republican: US just as focused on data security as Europe - The Hill

Laura Poitras Talks Assange, Her Final Version of Risk and Trump’s Tax Returns – Filmmaker Magazine

Just now released on Showtime, Laura Poitrass Risk, which found its way to theaters in May via upstart distributor Neon, is ina vastly different form than when it premiered last year in Cannes. The documentary traces a thread running counter to the moral certitude heard from our politicians, mostly on the right, about the role of leaks in degrading democracy. Wikileaks founder Julian Assange, the films primary subject, has been confined to the Ecuadorian embassy in London for nearly five years following allegations and, later, charges of sexual assault against two Swedish women. (The rape charge was recently dropped by Swedish prosecutors, although a charge of failing to surrender to a court remains.) Under a cloud of potential extradition to the U.S., Assange continues to deny these allegations, even as the statute of limitations on several of them has passed.

Until WikiLeaks became embroiled in the scandal regarding Russian hacking and interference with the U.S. 2016 election, Assanges public profile seemed to be on the wane, but with the films release and increased pressure by the Trump administration to punish leakers, the ever divisive journalistic and political figure is likely to come under even new scrutiny.

Risks footagewas initially going to be bundled with the Snowden material that made up her Oscar-winning Citizenfour,but eventually Poitras realized that the two threads would be too ungainly if wedded and would have to remain separate projects. Opening in 2011, the films drops us into a scene of Sarah Harrison, Assanges closest WikiLeaks collaborator, calling the U.S. State Department and asking to speak to Hillary Clinton about several secret cables that another entity is poised to release. In scenes of startlingly immediate vrit, Riskdetails the inner workings of WikiLeaks over several years and the personal toll it takes as various international state actors attempt to impose a muzzle on the sites activities.

In my interview with Poitras this past Spring, the filmmaker seemed ambivalent about Assanges role in the ongoing Russian hacking scandal, as well as the possibility of state actors being in cahoots with WikiLeaks to disrupt the U.S. election. The filmmaker suggested she began making Risk in a much different techno-political landscape, one rife with hopeful possibilities in the wake of the Arab Spring and Chelsea Manning for the possibilities of the internet being used as a tool for people to mobilize around democratization and whistleblowing. As the film arrived in theaters, Poitras admitted to finding that same landscape,where nation states marshall the internet for their own obfuscatory, perhaps anti-democratic designs with increasing frequency,terrifying right now.

Poitras acknowledged that the DNCs hacking and Wikileaks involvement in the unveiling of John Podestas emails functions as a third act which sort unfolded after the Cannes screening of course I needed to incorporate it. When I asked her about the most memorable of the new crop Field of Vision shorts Maxim Pozdorovkins Our New President,a hallucinatory found footage mashup of Russian state televisions evolving coverage of Donald Trumps young presidency with bizarre and occasionally chilling messages to the newly elected President from ordinary Russian citizens and bureaucrats Poitras mused, The subtext is this crazy panic about Russia right now, which is maybe [part] based in fact and a lot of it based in people getting spun up in issues.

While Risk has not necessarily grown more critical of Wikileaks in its new incarnation, the private behavior of Assange is viewed with far more scrutiny in the new cut. Poitras was pressured by Assange and his legal team to remove scenes where he discussed the Swedish case before the films premiere in Cannes last year. According to Poitras, the night before the films unveiling at Cannes in 2016, Assange sent her a text message, one she now includes in the film, which read, Your film is a severe threat to my freedom, and I plan to treat it accordingly. After that premiere, which Poitras admits to having doubted should have gone forward at all, some observers suggested the film didnt do enough to address the Swedish allegations. Poitras has doubled down in the new cut, increasing the films focus on Assanges contradictions, vanity, lack of contrition and unwillingness to be forthcoming concerning the Swedish matter.

But, according to Poitras,it was new revelations about another of the films characters that led her to continue working on the movie. Two weeks after the Cannes screening was when allegations about [transparency and privacy activist] Jacob Appelbaum were made online, and thats when I knew I had to go back, Poitras told me. Feeling she had no longer made an honest film, she was prepared to walk away from it entirely, refusing distribution offers unless she was able to get the gender politics within the film right. I dont want to pull punches, but Im not interested in taking anyone down, Poitras said, pausing for a moment, considering her words carefully. Im interested in having productive conversations about these issues.

Poitras reworking of Risk finds the filmmaker personalizing her depiction of the WikiLeaks saga. The new incarnation eschews the chapter-like structure in the Cannes cut for a far more sweepingly linear narrative. She occasionally punctuates this streamlined telling with bits of her own unusually personal narration, both in voiceover and in on screen text, pulled from a production diary she kept while shooting. Revealing her own relationship with Appelbaum and increasing discomfort with how he had treated various associates of his, Risk wades into the controversy of the activists resignation amid sexual misconduct claims from the Tor Project, a software application he helped develop that allows for greater online anonymity in an age of hyper surveillance.

Poitrass feelings of being used and disliked by Assange are plainly yet powerfully described as well, complicating scenes of paranoia and charm she glimpses as he blithely defends his vision of a new, more transparent society in which powerful elites are brought to heel by hackers and internet journalists such as himself. The depictions of Assange, often working with his associate Sarah Harrison both before and after he was granted political asylum from Ecuador, remain much the same as they were before. Poitras explains, in voiceover, how her involvement in the Snowden affair put her at odds with Assange, who wanted to control how the revelations were disseminated.

Still, regardless of how her subject views the finished product, the filmmaker is still willing to cast doubt on the veracity of the Swedish accounts and certainly does not buy into the rhetoric that Assange and Wikileaks are working in favor of Russia or Donald Trump. I cant verify this but I believe that if Julian had Trumps tax returns, he would release them, Poitras told me, flushing a bit as she took on a smile. I mean, look at Julian. What makes you think he would say, Oh, Im going to hold that back?

The question of whether such a revelation today would make any difference I hope more than much of the contemporary documentary filmmaking I have spent my adulthood consuming was one I didnt ask her. Perhaps I was too scared of the answer.

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Laura Poitras Talks Assange, Her Final Version of Risk and Trump's Tax Returns - Filmmaker Magazine

Cryptocurrency miners are renting Boeing 747s to ship graphics cards – PC Gamer

Have you ever had a moment where you didn't know whether to laugh or cry? That's the situation playing out in the graphics card market because of the cryptocurrency mining boom, a topic we've covered extensively in recent months. But just when we thought there was nothing left to report on the matter, it's come out that some of the most active Ethereum miners are renting Boeing 747 airplanes to ship orders of graphics cards. Yes, seriously.

That is the sort of money that is at stake here. Cryptocurrency is highly volatile, Ethereum included. For miners with massive setups, shipping by sea is just too slow.

"Time is critical, very critical," Marco Streng, chief executive of Genesis Mining, told Quartz. "For example, we are renting entire airplanes, Boeing 747s, to ship on time. Anything else, like shipping by sea, loses so much opportunity."

Some 36,000 units of Ethereum is collectively mined each day. At around $200 per unit, miners are competing for $7.2 million worth of Ethereum per day. At one point just a few weeks ago, those figures were doubled with Ethereum spiking to $400.

"Time counts so much. We are using the fastest delivery possible," Streng added. "You risk the opportunity to mine for the days you are delayed. If you are deploying 10 days later, you are losing 10 days of miningthat is the cost."

Streng notes that Ethereum was trading for around $10 per unit at the beginning of the year, before ballooning to $400 in June, thus creating an "incredible economic incentive for people to start mining." And also a shortage of graphics cards, as Streng is aware.

It's tough to get a read on the market and where things will go from here. If we're being optimistic, we can look at the recent drop in value and rise in difficulty to mine Ethereum. This has caused some casual miners to dump their used hardware on Ebay, albeit at inflated price tags. We can take that as a sign that the market is starting to creep back towards normalcy.

On the flip side, miners who have more invested are willing to ride the ups and downs. And apparently business is still good enough that not only can they afford to rent Boeing 747s to ship graphics cards, but they can't afford not to.

Even AMD has acknowledged the impact of mining on graphics cards shipments. This is something AMD CEO Dr. Lisa Su touched on during a recent earnings call.

"Relative to cryptocurrency, we have seen some elevated demand," Dr. Su said. "But it's important to say we didn't have cryptocurrency in our forecast, and we're not looking at it as a long-term growth driver. But we'll certainly continue to watch the developments around the blockchain technologies as they go forwards."

Dr. Su also acknowledged that inventories of GPUs is "quite lean" at the moment. The good news? AMD is "working on replenishing" stock, adding that the company's priority is on the gaming market. Let's hope it plays out that way in the coming months, especially with Vega right around the corner.

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Cryptocurrency miners are renting Boeing 747s to ship graphics cards - PC Gamer

Secretive Cryptocurrency Hedge Fund Metastable Examined – Bitcoin News (press release)

Fortune has published an examination of a secretive cryptocurrency hedge fund that is backed by some of Silicon Valleys top venture capital firms. The fund was co-founded by Naval Ravikant, Joshua Seims, and Lucas in 2014, and has produced returns of over 500%.

Also Read:Hedge Funds Are Quietly Investing in Bitcoin

Metastable Capital is a cryptocurrency hedge fund that has attracted investment from many top venture capital firms despite largely shunning publicity since its inception in 2014. Metastable was co-founded by Angellist CEO, Naval Ravikant, cryptography expert, Lucas Ryan, and former angel investor, Joshua Seims.

Fortune has reported that Andreessen Horowitz, Sequoia Capital, Union Square Venture, Bessemer Venture Partners, and Founders Fund are among Metastables major investors all of whom participated in Polychain Capitals fundraiser earlier this year.

Metastable takes a long term perspective when assessing the markets, aiming to invest in projects that it expects will be profitable over the course of at least a decade. Theres a handful of, say between five and 10 of these major use cases that could be trillion-dollar blockchains, Seims told Fortune. Its all very long-term focused, and we think were in super early days right now. It really comes down to which do we think is the strong enough technology, that we think can win.

Metastables website describes two funds offered by the firm, Metastable Balanced, and Metastable Edge. The Balanced fund seeks to take a value-investor approach to investing, guided by deep technical understanding of the protocols to select a portfolio that we believe will deliver the greatest returns, holding a large portion of bitcoin, in additional to several smaller sized positions in major altcoins. Edge is designed for investors that already have substantial Bitcoin holdings, and holds ETH and a variety of smaller coins from more recent ICOs, although the ETH portion fluctuates based on whether we believe that the value from new coins is going to accrue to the new coin or to ETH.

Metastables flagship cryptocurrency hedge fund has yielded impressive performance throughout 2017. At present, Fortune asserts that Metastables Balanced fund is invested in approximately a dozen different markets, including bitcoin, ethereum, and monero of which it is reported to own roughly 1% of total supply. During mid-March, Metastable reported returns of 539%, however, since March, bitcoin, monero, and ethereum have more than doubled prompting Fortune to estimate Metastables returns since inception are greater than 1,000%. On June 23 it is alleged that Metastable reported total assets of $69 million.

Metastable requires a minimum investment of $1 million, and charges a 2% management fee and a 20% performance fee.

Do you think that cryptocurrency funds will continue to out perform mainstream hedge funds in coming years? Share your thoughts in the comments section below!

Images courtesy of Shutterstock and Wikipedia

Need to calculate your bitcoin holdings? Check ourtoolssection.

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Secretive Cryptocurrency Hedge Fund Metastable Examined - Bitcoin News (press release)

Cryptocurrency ICOs Are Making Bitcoin Startups Richer than VCs Ever Did – Fortune

When initial coin offerings emerged as a new way for startups to raise money a few months ago, there was much speculationand some doubt about whether the cryptocurrency crowdfunding method could disrupt or even replace the traditional venture capital industry .

Now, the early numbers are in, and there is no question that ICOs , an unregulated form of fundraising by which companies can sell their own form of digital currency or tokens to investors, are winning this race, at least in the blockchain industry.

ICOs have now raised nearly four times as much money as bitcoin companies raised in venture capital dollars so far this year. Thats according to PitchBook, which tallied up the latest numbers: ICOs have raised almost $1.3 billion in 2017 so far, while only about $358 million in traditional VC money went to blockchain startups over the same period.

And that's at a time when venture capital is booming among blockchain companies. Last quarter was the best quarter for blockchain and bitcoin VC funding on record, more than doubling the amount raised in the first quarter and up 89% year over year, according to CBInsights.

But ICOs are growing much faster, having already raised almost six times as much this year as they raised in all of 2016.

Now, a fundraising method that you likely had never heard of until a few months ago is on track this year to exceed all prior VC investment in blockchain, which has totaled a cumulative $1.7 billion over the past eight years, PitchBook says.

To underscore just what a whirlwind trend this has become, even entrepreneurs doing their own ICOs are astonished by the craze.

At a panel discussion hosted by BlockchainDriven Thursday night, Morgan Hill, an investor at Attis Capital, announced that he was launching a new cryptocurrency hedge fund called AxionV in August. But unlike the crypto hedge fund startup MetaStable , which recently received funding from Sequoia, Andreessen Horowitz, Founders Fund, Union Square Ventures and Bessemer Venture Partners, AxionV has a different plan. It will do an ICO itself, targeting a $30 million fund, which it will then use to invest in other ICOs, Hill said.

He also told a story of another hedge fund manager in London who was planning to launch an ICO of a company that aims to put the entire Quran online, and use the new cryptocurrency to compensate people who contribute to the digitization of the religious text. Hills take: The first thing I thought was, this is categorically insane.

He later came around, he said, acknowledging religion is a very important piece of information and that the project actually does provide a huge value.

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Cryptocurrency ICOs Are Making Bitcoin Startups Richer than VCs Ever Did - Fortune