How will the US Gov't auction effect the price of bitcoin? - page 2.

finlon

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Quote from: biggus dickus on March 04, 2015, 08:37:39 AM

Quote from: Omikifuse on March 04, 2015, 08:02:50 AM

the auction is preventing the prices to rise further.

Expect a big pump after auction is gone

It depends who win and what they do with their coins. If there are not many bidders and someone gets them dirt cheap they might dump to make a quick buck. If Tim Draper wins them all and holds then the price might not crash. He only won one small lot the last time though.

Well ,I doubt anyone who buys them will be dumping them, as the price will drop and he will lose money selling them. People who usually take part in these bids do so, to not buy that amount from exchanges, as buying will take the price up and they will be paying a large amount to buy the coins.

biggus dickus

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Quote from: Omikifuse on March 04, 2015, 08:02:50 AM

the auction is preventing the prices to rise further.

Expect a big pump after auction is gone

It depends who win and what they do with their coins. If there are not many bidders and someone gets them dirt cheap they might dump to make a quick buck. If Tim Draper wins them all and holds then the price might not crash. He only won one small lot the last time though.

Omikifuse

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the auction is preventing the prices to rise further.

Expect a big pump after auction is gone

Amph

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what is the amount we are referring to? if it's something small it won't affect the price in any way, either way i think the price will keeps rising this time, they will not dump those coins

the wave is toward the pump

finlon

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Well in the past, these bids have actually caused the price of bitcoin to fall. However these bidders don't buy bitcoins to sell them immediately in the market, so they should not be affecting the price by much.

Silly Money

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Quote from: Q7 on March 04, 2015, 06:45:41 AM

The winner to the auction probably managed to buy at a discounted price, lower that the market spot price. If he decides to dumped everything to the open market then it will negatively affect bitcoin price. But somehow I don't think they will do that sort of stuff. With the future of bitcoin in mind, holding their stash and wait for the right time would be the most logical thing to do for now

I don't think these sorts of bidders are looking to make a little profit on a quick sale. They'll likely be able to see the future potential in bitcoin and buying them for an investment or buying them to use or set up their own bitcoin-releated business.

NeuroticFish

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1. If it's a well known name, stepping up and telling "I won the auction and I will keep the coins because Bitcoin will have a bright future" will increase the confidence, the number of buyers and the price.

2. If it's somebody rather dumb that got the coins at a very discounted price will dump them all and will have a minimal profit. The market will go to new minimum and everybody loses.

3. This is what I actually expect to happen: the buyer will slowly sell some of the coins. The effect on the price will be unnoticeable (actually these days there's a chance for a rise of the price) and everybody wins on long term.

Q7

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The winner to the auction probably managed to buy at a discounted price, lower that the market spot price. If he decides to dumped everything to the open market then it will negatively affect bitcoin price. But somehow I don't think they will do that sort of stuff. With the future of bitcoin in mind, holding their stash and wait for the right time would be the most logical thing to do for now

Silly Money

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Re: How will the US Gov't auction effect the price of bitcoin?

Wait and see Cheesy

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Quote from: Xiaoxiao on March 04, 2015, 04:09:45 AM

Under what circumstances will it increase the price, if any? And under what circumstances will it decrease the price, if any? Will it effect the price at all? Let me hear your thoughts.

It will only decrease the price if whoever buys them dumps them all but this is probably unlikely unless he gets them very cheap. They'll likely be bought to hold or save for investing into something else. I cannot see the price rising because of this, though.

Sindelar1938

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Think the actual impact may be low. However if there is a sense that there were fewer quality bidders than in previous auctions, the price may temporarily sag

Xiaoxiao

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The Golden Rule Rules

Under what circumstances will it increase the price, if any? And under what circumstances will it decrease the price, if any? Will it effect the price at all? Let me hear your thoughts.

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