Topic: FBI coins could sell for a premium - page 3. (Read 5901 times)
How do their other auctions work? Do they usually set a minimum bid price? I don't think the coins will sell for a premium, but they won't go for much less than the exchange rate.
Unlikely, there's more of a chance for them to sell at a heavy discount (if they all go to 1 buyer) and then the merchant would be responsible for selling them off slowly to obtain a profit.
Some people don't understand that the auction is 'dedicated'. There's a 16th June deadline for the 200k$ deposit.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
You're silly if you think people ready to buy these will bitch around 15-20$. They get lot of coins on fixed price, without slippage that would make price go up hundreds of dollars on the exchange.
exactly. these days there are not many opportunities to move 10 mil into bitcoin. you surely can wire that money to a non-US licensed slovenian exchange and hope they don't close the next day, then buy that coins causing a mini-rally from $600 to $900, then take a printout of three thousand little buys that happened on that exchange and give that to your accountant for tax purposes
OR you could buy them for $700 a piece by wiring money to US marshals, get a single sale and a stamped proof of purchase.
Hmm tough choice what would I do what would I do...
Good thought!
There is an implicit guarantee that the coins to be sold are legal and without any sort of taint, at least in the eyes of the Feds.
Hmm..
As long as there are enough bidders, we will see a premium.
enough = 2
I think it's likely there will be a slight premium. Buying 30k coins on exchanges is doable but not easy. It would probably take a month to do so. Plus, all the risks with large sums of money. Whales have been waiting for this. Everyone knows that the price is going up now. As long as there are enough bidders, we will see a premium.
Some people don't understand that the auction is 'dedicated'. There's a 16th June deadline for the 200k$ deposit.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
You're silly if you think people ready to buy these will bitch around 15-20$. They get lot of coins on fixed price, without slippage that would make price go up hundreds of dollars on the exchange.
exactly. these days there are not many opportunities to move 10 mil into bitcoin. you surely can wire that money to a non-US licensed slovenian exchange and hope they don't close the next day, then buy that coins causing a mini-rally from $600 to $900, then take a printout of three thousand little buys that happened on that exchange and give that to your accountant for tax purposes
OR you could buy them for $700 a piece by wiring money to US marshals, get a single sale and a stamped proof of purchase.
Hmm tough choice what would I do what would I do...
Some people don't understand that the auction is 'dedicated'. There's a 16th June deadline for the 200k$ deposit.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
You're silly if you think people ready to buy these will bitch around 15-20$. They get lot of coins on fixed price, without slippage that would make price go up hundreds of dollars on the exchange.
i can imagine.. some exchanges with lower luiquidity would be interested.. if they find an investor to buy coins and use them as market maker ....
Would be awesome to see some big investors bid for these coins and them really wanting it. This would legitimize bitcoin even more and send the price to the moon.
Such large-scale purchases will of course not happen at market price but below it. Especially with bitcoin where it is arguably difficult to estimate a 'real' or consistent price at which these coins could be sold afterwards.
High stake gamblers exist, but this route (buying via official channels) lures rational investors in who will carefully assess their chances of selling these coins with a reasonable profit.
Not everybody follows blind slogans like 'to the moon', 'hodl', 'sodl' or 'bitcoin is doomed' as people on this forum do. It is not a battle for high or low prices, people just want to increase their value one way or the other.
And we all know that the current bitcoin price is simply an inflated number, caused by speculative savers who retain large quantities of coins from the market. If the average holding time of a bitcoin would approach a status typical of a medium of exchange and the market would find it's equilibrium then the current price would be much much lower.
This might of course change with larger adoption.
High stake gamblers exist, but this route (buying via official channels) lures rational investors in who will carefully assess their chances of selling these coins with a reasonable profit.
Not everybody follows blind slogans like 'to the moon', 'hodl', 'sodl' or 'bitcoin is doomed' as people on this forum do. It is not a battle for high or low prices, people just want to increase their value one way or the other.
And we all know that the current bitcoin price is simply an inflated number, caused by speculative savers who retain large quantities of coins from the market. If the average holding time of a bitcoin would approach a status typical of a medium of exchange and the market would find it's equilibrium then the current price would be much much lower.
This might of course change with larger adoption.
Some people don't understand that the auction is 'dedicated'. There's a 16th23rd June deadline for the 200k$ deposit.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
FTFY
There are 2 deadlines, 16th and 23rd June. I understood that the 16th deadline is to initiate the deposit and 23rd to reach the USMS account.
Phase I: Bidder Registration
Deadline: 9:00 AM EDT on Monday, June 16, 2014
Deadline: Noon EDT on Monday, June 23, 2014
Otherwise, what is the 16th deadline for? I found no other mention of the 16th deadline in the rest of the document.
I think that's just a typo. See the calendar below. It doesn't even mention 16th. I think 16th is the date they start accepting registration.
Some people don't understand that the auction is 'dedicated'. There's a 16th23rd June deadline for the 200k$ deposit.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
FTFY
There are 2 deadlines, 16th and 23rd June. I understood that the 16th deadline is to initiate the deposit and 23rd to reach the USMS account.
Phase I: Bidder Registration
Deadline: 9:00 AM EDT on Monday, June 16, 2014
Deadline: Noon EDT on Monday, June 23, 2014
Otherwise, what is the 16th deadline for? I found no other mention of the 16th deadline in the rest of the document.
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For large, conservative investors, this is the first chance to buy bitcoins directly from the U.S. Government. There is an implicit guarantee that the coins to be sold are legal and without any sort of taint, at least in the eyes of the Feds. Also, to many such investors, the U.S. Gvt is the most trusted trading partner possible. They are the most reliable organization to trust wiring millions of dollars to.
The auction is a giant stamp of approval, if not for bitcoin as a whole, than at least for the particular set of coins at auction.
There are obviously reasons why the coins may sell at a discount as well, and I tend to think that is more likely. My guess is there is about a 20% chance the coins will sell over spot. After all, the supply of government-approved bitcoins is very very tiny.
The auction is a giant stamp of approval, if not for bitcoin as a whole, than at least for the particular set of coins at auction.
There are obviously reasons why the coins may sell at a discount as well, and I tend to think that is more likely. My guess is there is about a 20% chance the coins will sell over spot. After all, the supply of government-approved bitcoins is very very tiny.
It is a tricky one to value the coins could well sell at a premium relative to the Bitcoin price at announcement
In other words if the market drops 10 to 15% on this news the premium would be if the Bitcoins were bought at the market price before this release
That or they offer market rates, as for your point on the taint it's a good point that in the opinion of the government these coins sold through legal auction are seized property and now they are being resold legally so there is no issue about them being illegal.
So these coins could easily get a premium if a company is interested in them.
Some people don't understand that the auction is 'dedicated'. There's a 16th23rd June deadline for the 200k$ deposit.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
FTFY
For large, conservative investors, this is the first chance to buy bitcoins directly from the U.S. Government. There is an implicit guarantee that the coins to be sold are legal and without any sort of taint, at least in the eyes of the Feds. Also, to many such investors, the U.S. Gvt is the most trusted trading partner possible. They are the most reliable organization to trust wiring millions of dollars to.
The auction is a giant stamp of approval, if not for bitcoin as a whole, than at least for the particular set of coins at auction.
There are obviously reasons why the coins may sell at a discount as well, and I tend to think that is more likely. My guess is there is about a 20% chance the coins will sell over spot. After all, the supply of government-approved bitcoins is very very tiny.
The auction is a giant stamp of approval, if not for bitcoin as a whole, than at least for the particular set of coins at auction.
There are obviously reasons why the coins may sell at a discount as well, and I tend to think that is more likely. My guess is there is about a 20% chance the coins will sell over spot. After all, the supply of government-approved bitcoins is very very tiny.
A bitcoin is a bitcoin is a bitcoin.
They all look, taste and smell the same, except for those fancy physical ones.
Some people don't understand that the auction is 'dedicated'. There's a 16th June deadline for the 200k$ deposit.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.
As they get through the first few millionaires they will have a lot of bitcoins left.
I don't know what you are talking about, but there's over *ten million* millionaires in US alone. Also imagine how many rich people have money in USA that they need to move home without alarming local authorities. And don't forget institutions. I think the battle over these bitcoins will be hot.
This is actually a first time in history when you can buy large amounts of bitcoins absolutely safely, at a fixed price, and with a US government-signed papers for them. I think we will easily see 20% premium over market price on those.
And this is definitely that FUD dip that have preceded every rally in bitcoin history.
And as this is an open auction, it is extremely unlikely that it will be sold vastly below the spot price. $600*30000=$18M is nothing for real whales
Ahh, ok...this is just the 29k bitcoins. I thought there were over 200k.
I agree, with just 29k they will be bought up quickly. And hopefully we will have new rich people in bitcoin.
I'm about as big of a bull as anyone but I can see this sale dropping the price by quite a bit in the short term.
They're taking in minimum deposits of $200k selling in 3000 bitcoin blocks.
As they get through the first few millionaires they will have a lot of bitcoins left. Those that only deposit the minimum might be able to get 3000 coins for $200k.
That's less than $70 per coin. I'd sell $200k worth of bitcoin to get in on that deal.
They're taking in minimum deposits of $200k selling in 3000 bitcoin blocks.
As they get through the first few millionaires they will have a lot of bitcoins left. Those that only deposit the minimum might be able to get 3000 coins for $200k.
That's less than $70 per coin. I'd sell $200k worth of bitcoin to get in on that deal.
You really think Bitcoins will go for 80% to 90% less than exchange prices? There is zero chance of that. It may sell at a slight discount or it may be heavily subscribed (high net worth individuals see it as being useful for getting Bitcoins with a "clear title" without wiring seven figure amounts to Slovakia) and it sells for a modest premium. I would say +/-10% of market price. With hedge funds being interested you really think the entire planet can't come up with more than $2M? The $200K is just what is called "earnest money". It just allows you to bid, and this isn't no "ebay style you only get negative feedback if you fail to pay up" auction. They collect the earnest money because if you place a bid and can't or won't pay at settlement you have already agreed to forfeit the $200K. It gets expensive to toll bid at $200K a pop.
Bitcoins selling up to 90% off retail is is just about as likely as the DOJ only getting a $1.23 an ounce when they auction off some seized gold bullion.
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