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Topic: Thoughts on FBI dumping Silkroad BTC - page 2. (Read 6991 times)

hero member
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January 04, 2014, 08:02:30 PM
#69

These are different agencies that barely talk to each other.  The US government isn't as corrupt as most of you think.  They are required to auction seized assets by law.

This is not about corruption. This is about a potentially huge game-changing financial technology arriving much faster than anyone is anticipating.

Do you honestly think they will just auction them like any old junk confiscated from criminals?

Until they feel like they understand Bitcoin properly (which could take a while) those coins will not go anywhere.
sr. member
Activity: 378
Merit: 255
January 04, 2014, 08:00:44 PM
#68
Just a thought: can`t we just hard fork bitcoin to invalidate the coins in posession of the FBI?  Grin

If you can convince 51% of the miners to screw the most powerful government on earth...  Probably not happening.
sr. member
Activity: 378
Merit: 255
January 04, 2014, 07:59:34 PM
#67
I'm pretty sure they said they were going to sell the coins ..... someone can correct me if they didn't

Why? Do you think they need the money right now? Of course they won't sell. Everybody is bullish for Bitcoin this year, including the FBI! Even all the bears on this forum are bullish!  Grin

There is no way the FBI will sell any coins for at least 2 years in my opinion, and only then might they pass some to the treasury as a way to control the price.



Basically the FBI has to sell them, unless special legislation would be passed which would allow the FBI to speculate on seized assets, which makes no sense. What remains is using them for some sort of sting operation to flush out other blackmarket sites, but I don't think that is really an option since it's hard to hide where the coins come from.
Are you really that ignorant about how the world works?

Ignorant? What do you mean? Considering that the US government is working out how to cater for Bitcoin's success do you not think they would want reserves of their own? Right now there is speculation going on with fiat currencies: does that mean that the government or FBI is not allowed to hold fiat currencies?

These are different agencies that barely talk to each other.  The US government isn't as corrupt as most of you think.  They are required to auction seized assets by law.
sr. member
Activity: 378
Merit: 255
January 04, 2014, 07:55:44 PM
#66
I doubt that FBI will sell the coins at all.. They will probably scramble the source and use the coins to fish out criminals from the tor market community or any other criminals that have started to use bitcoin in their ventures. Bitcoin properties give a nice edge to orginized crime in it's efficiency in handling value. I think that in a byrocratic perspective, it's easier to keep confiscated coins and use them as an asset, then to sell coins and buy back coins later when needed.

They may use some of the seized coins for this after auctioning in order to catch bad guys.  Of course, if I were a bad guy, I would never accept a bitcoin that could be traced back to that address.  But bad guys aren't usually smart (or they wouldn't be bad guys).
sr. member
Activity: 378
Merit: 255
January 04, 2014, 07:52:05 PM
#65
How they got access to the coins will probably never be publicly known. Weak password, old unencrypted wallet-backup, deal with DPR, etc... There are various options available.

Scopolamine? Waterboarding at Guantanamo Bay?

 Wink

They're the FBI, not the CIA.  (US Citizens are treated differently than foreigners...)
sr. member
Activity: 378
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January 04, 2014, 07:50:42 PM
#64
http://pando.com/2014/01/02/with-130m-of-bitcoin-wealth-and-plans-to-sell-the-fbi-could-rattle-the-virtual-currency-cage/

Being a government entity you can bet on them trying everything in their power to crash the price when they unload..if for nothing else for fun of it

Kinda wondering how the FBI even got to the coins.  Encrypted wallet?  Ya know?

Standard practice is keyloggers and to arrest the person when their account is already open.  Encryption?  What encryption?  They have it in the keylogger record.
legendary
Activity: 1470
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Want privacy? Use Monero!
January 04, 2014, 04:53:18 PM
#63
Don't EVER sacrifice fungubility of Bitcoin. EVER. FOR ANY REASON.
This is the most important and pretty much only point made in this thread.  An attack on the fungibility of Bitcoin is currently the only real threat to Bitcoin I see from LE, GOV or from within.

It was just a thought experiment Wink
I like the purity of Bicoin as it is now...

But think about a world were government tries something like coinvalidation, bitcoins are stolen from the regular people for "legal" reasons,  and bitcoin taxes are collected by the government.
In that case, I think it is fair to try to invalidate the colected taxes and the deny the coin validation by hard forking Bitcoin and implement the "PureBitcoin" Smiley

We could create a list (yes, I know... This will be difficult to implement on a peer 2 peer basis) which excludes certain adresses and the coins send to those adresses are not accepted by the network and send back to the previous address.
So we create a parallel PureBitcoin where the people do not pay taxes and bitcoins are not confiscated by the government.

Naturally, the original bitoin will still exist, and an exchange rate between the 2 will be established. The market will decide which coin is preferred.
legendary
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January 04, 2014, 03:41:12 PM
#62
Don't EVER sacrifice fungubility of Bitcoin. EVER. FOR ANY REASON.
This is the most important and pretty much only point made in this thread.  An attack on the fungibility of Bitcoin is currently the only real threat to Bitcoin I see from LE, GOV or from within.
hero member
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January 04, 2014, 02:09:41 PM
#61

that's a damn shame. electric would be nearly my last ignore, if i was so inclined. the fact is you're extrapolating things from your own personal opinions and forgetting that not everyone thinks the same way about bitcoin.


OK. Forget the "ignoring". Let's focus on the topic. Can I ask you a serious question?

Please read this first: http://techliberation.com/2014/01/02/help-me-answer-senate-committees-questions-about-bitcoin/

Would you say that the impression I got from reading this and other diverse sources of information, the impression that "the government is working out how to cater for Bitcoin's success", is "delusional"?

"the government" is not a single, monolithic entity so it's not necessarily delusional it just doesn't make much sense.

the FBI, however, if some sources are to be believed, have a specific and precedented way to deal with seized assets which will likely not be changed without due process.

OK! Thanks for your balanced response.
sr. member
Activity: 448
Merit: 250
this statement is false
January 04, 2014, 02:07:41 PM
#60

that's a damn shame. electric would be nearly my last ignore, if i was so inclined. the fact is you're extrapolating things from your own personal opinions and forgetting that not everyone thinks the same way about bitcoin.


OK. Forget the "ignoring". Let's focus on the topic. Can I ask you a serious question?

Please read this first: http://techliberation.com/2014/01/02/help-me-answer-senate-committees-questions-about-bitcoin/

Would you say that the impression I got from reading this and other diverse sources of information, the impression that "the government is working out how to cater for Bitcoin's success", is "delusional"?

"the government" is not a single, monolithic entity so it's not necessarily delusional it just doesn't make much sense.

the FBI, however, if some sources are to be believed, have a specific and precedented way to deal with seized assets which will likely not be changed without due process.
hero member
Activity: 644
Merit: 500
One Token to Move Anything Anywhere
January 04, 2014, 01:27:23 PM
#59

that's a damn shame. electric would be nearly my last ignore, if i was so inclined. the fact is you're extrapolating things from your own personal opinions and forgetting that not everyone thinks the same way about bitcoin.


OK. Forget the "ignoring". Let's focus on the topic. Can I ask you a serious question?

Please read this first: http://techliberation.com/2014/01/02/help-me-answer-senate-committees-questions-about-bitcoin/

Would you say that the impression I got from reading this and other diverse sources of information, the impression that "the government is working out how to cater for Bitcoin's success", is "delusional"?
sr. member
Activity: 448
Merit: 250
this statement is false
January 04, 2014, 01:21:04 PM
#58
Parroting what you just have written doesn't suddenly make it true.

My first ever ignore!  Cheesy

congrats.

that's a damn shame. electric would be nearly my last ignore, if i was so inclined. the fact is you're extrapolating things from your own personal opinions and forgetting that not everyone thinks the same way about bitcoin.

"just the place for a snark," the bellman cried, as he landed his crew with care --
supporting each man on the top of the tide by a finger entwined in his hair!
"just the place for a snark! i have said it twice! that alone should encourage the crew,"
"just the place for a snark! i have said it thrice! what i tell you three times is true..."
hero member
Activity: 644
Merit: 500
One Token to Move Anything Anywhere
January 04, 2014, 01:18:33 PM
#57

also, the world tends not to care about "your opinion". there are these things called facts that take precedence Tongue

--arepo

But it's all opinion in here!
legendary
Activity: 2324
Merit: 1125
January 04, 2014, 01:16:02 PM
#56
Just a thought: can`t we just hard fork bitcoin to invalidate the coins in posession of the FBI?  Grin

It goes against just about everything I believe in, and yet I can't help but love that idea Smiley

yes indeed. I do not want to steal/invalidate someones money, but if we can just invalidate the coins in possesion of the FBI, it would be great Cheesy

It would probably cause a hard fork with 2 existing bitcoins:
The ones accepting the FBI-coins, and the other ones Tongue

Maybe this is a great altcoin idea LOL

Don't EVER sacrifice fungubility of Bitcoin. EVER. FOR ANY REASON.
sr. member
Activity: 448
Merit: 250
this statement is false
January 04, 2014, 01:14:52 PM
#55
I'm pretty sure they said they were going to sell the coins ..... someone can correct me if they didn't

Why? Do you think they need the money right now? Of course they won't sell. Everybody is bullish for Bitcoin this year, including the FBI! Even all the bears on this forum are bullish!  Grin

There is no way the FBI will sell any coins for at least 2 years in my opinion, and only then might they pass some to the treasury as a way to control the price.

you really need to put down the kool-aid...

also, the world tends not to care about "your opinion". there are these things called facts that take precedence Tongue

--arepo
legendary
Activity: 2646
Merit: 1137
All paid signature campaigns should be banned.
January 04, 2014, 01:09:55 PM
#54
Yet another thread about the FBI coins?  Learn to use the damn search function!

They will auction them off just like they do every other asset they take during their investigations.

/thread
legendary
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Marketing manager - GO MP
January 04, 2014, 12:55:46 PM
#53
Parroting what you just have written doesn't suddenly make it true.

My first ever ignore!  Cheesy

congrats.
hero member
Activity: 644
Merit: 500
One Token to Move Anything Anywhere
January 04, 2014, 12:54:41 PM
#52
Parroting what you just have written doesn't suddenly make it true.

My first ever ignore!  Cheesy

EDIT: seriously though, read this before answering again:
http://techliberation.com/2014/01/02/help-me-answer-senate-committees-questions-about-bitcoin/
legendary
Activity: 1666
Merit: 1057
Marketing manager - GO MP
January 04, 2014, 12:53:59 PM
#51
Parroting what you just have written doesn't suddenly make it true.
hero member
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Merit: 500
One Token to Move Anything Anywhere
January 04, 2014, 12:51:20 PM
#50
One senator making a non-negative statement equals the whole goverment "catering to it", right.
On the subject of you example, did you it's not allowed to spend Bitcoins received for campaign donations? Grin

What are you talking about? Tom Carper is the Senator charged with being the intermediary between the US government and Bitcoin at the moment. Didn't you know that?

Read this: http://techliberation.com/2014/01/02/help-me-answer-senate-committees-questions-about-bitcoin/

Tom Carper is asking questions on behalf of the government.

And by the way, the news that you are not allowed to spend the Bitcoins received for campaign donations is good news. It means they want to "Hodl" too!  Wink

But seriously, get with the program. The US government is working out how to cater for Bitcoin's success. End of story.
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