If FBI auctioned $18m of seized gold, would price of gold take a hit?

NEM minnow

member

Activity: 104

Merit: 10

Quote from: beatljuice on June 15, 2014, 06:14:16 PM

Remember that Bitcoin is TINY! Its market cap is only slightly over 1% of Apple and that's just one company (granted the highest valued company there is). When you understand this is when Bitcoin gets really exciting.

EDIT: Really exciting from an investment perspective. There are many other reasons to be excited about Bitcoin also.

This is soooo true. It is exciting from an investment perspective because we know if it gets big it has room to grow 100 times or even 1000 times bigger. That being said, it is also so comparatively small, that another tech could displace it.

beatljuice

full member

Activity: 196

Merit: 100

Remember that Bitcoin is TINY! Its market cap is only slightly over 1% of Apple and that's just one company (granted the highest valued company there is). When you understand this is when Bitcoin gets really exciting.

EDIT: Really exciting from an investment perspective. There are many other reasons to be excited about Bitcoin also.

beatljuice

full member

Activity: 196

Merit: 100

Market cap of gold = 6,647,834,263,217

Market cap of Bitcoin = 7,521,163,339

To have the same effect as $18,000,000 does on Bitcoin you would have to sell $15,909,907,994 of gold.

OROBTC

legendary

Activity: 2940

Merit: 1865

...

$18 million of gold is less than half a metric tonne. Peanuts. Not a price blip at all. For now.

In round numbers, current prices:

($1277 / toz Au) * (32.15 toz / kg) * 1000 kg / metric tonne) = $41,055,000 / metric tonne

$18 mln / $45.1 mln = 44% of a metric tonne.

***

Yes, you can buy that all at once (physical Au) if you have the money.

***

More gold information here:

"Gold: Basic Facts for the 99%"

http://goo.gl/i3GESl

Cicero2.0

member

Activity: 98

Merit: 10

★☆★Bitin.io★☆★

I think it is kind of a different market though. With gold it is pure supply and demand so I would think the price would go down more dramatically. With bit coin it is different depending on whether or not it goes through the exchanges isn't it?

bananas

sr. member

Activity: 364

Merit: 257

Quote from: Bit_Happy on June 15, 2014, 05:16:09 PM

Bravo. I think the prices will be above market value, since people will not have to send funds to unregulated exchanges outside of the USA.
They are sealed (blind) bids, will the actual sale prices even be revealed at all later?

I think it has to be made public, like all governement things. It is probably sealed just for the auction purpose, and then it is public information.

Bit_Happy

legendary

Activity: 2114

Merit: 1040

A Great Time to Start Something!

Bravo. I think the prices will be above market value, since people will not have to send funds to unregulated exchanges outside of the USA.
They are sealed (blind) bids, will the actual sale prices even be revealed at all later?

RUEHL

full member

Activity: 126

Merit: 100

If FBI auctioned $18m of seized gold, would price of gold take a hit?

Hell no!

Then why Bitcoin? Doesn't make sense... Roll Eyes

Topic: If FBI auctioned $18m of seized gold, would price of gold take a hit? (Read 792 times)