Us government about to auction 1.6billon worth bitcoin

Kocret02

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Quote from: Obi theo on December 18, 2020, 12:06:19 PM

With all the increase in price for the passed days the US government are still thinking of auctioning seized bitcoin worth $1.6 billon , the are advice to hold on to the bitcoin by a bitcoin maximist Pierre Rochard
Source : .https://cryptohision.com/2020/12/18/the-1-6-billion-silk-road-bitcoins-shouldnt-be-auctioned/
If this is actually true ,what is the US government actually trying to prove ?
With the increase recent increase in price the still want to auction 69,370 bitcoin.
Your thoughts on these.

like if the auction is carried out it will affect the price of bitcoin and could experience a dump. that's natural because the number 69,370 is very large for bitcoin. So I think there are certain factors why the government wants to auction off large amounts of bitcoins

NotATether

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Quote from: Deddyhoku on December 20, 2020, 01:27:03 AM

Will this dump btc price? I hope that they smart enough to sell it in the right way

It probably will, since how are they supposed to transfer millions of dollars from the winner? It's most likely going to be an institution that bids that much and wins it because normal people don't have that much money. Then they will convert some of those holdings to USD as well, so there will be a bunch of bitcoin dumped on the market which might bring us down short term, but it's not going down to pre-November levels again, that's for sure.

dizzy1996

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I would not recommend selling bitcoins since the US government could leave them for long-term storage, since the price is constantly growing and with time it can bring a large amount of funds that will give a large profit to the state and money will not be superfluous to the budget

avikz

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Quote from: Obi theo on December 18, 2020, 12:06:19 PM

With all the increase in price for the passed days the US government are still thinking of auctioning seized bitcoin worth $1.6 billon , the are advice to hold on to the bitcoin by a bitcoin maximist Pierre Rochard
Source : .https://cryptohision.com/2020/12/18/the-1-6-billion-silk-road-bitcoins-shouldnt-be-auctioned/
If this is actually true ,what is the US government actually trying to prove ?
With the increase recent increase in price the still want to auction 69,370 bitcoin.
Your thoughts on these.

I really doubt the legitimacy of this news, but if it really happens, then it won't be good for the market in short term. Because it will suddenly create a large influx of supply which will in turn decrease the price of bitcoin in shorter term. However, since we are seeing a lot of institutional interest around bitcoin, it may be possible that the demand will stay robust! So if a corporate buys these bitcoins in large quantity, it may not impact on the retail bitcoin market. In a nutshell, a sudden increase in supply may harm the bull run unless these bitcoin a bought by a corporate entity in bulk and stored for long term.

However, one good thing is that these locked bitcoins will come back to circulation again. There will be impact, but temporary! Nothing is long-lived in bitcoin market! Not even the bull run!

Deddyhoku

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Will this dump btc price? I hope that they smart enough to sell it in the right way

meanwords

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Quote from: Fesatmas on December 18, 2020, 12:40:04 PM

Quote from: Obi theo on December 18, 2020, 12:06:19 PM

If this is actually true ,what is the US government actually trying to prove ?
With the increase recent increase in price the still want to auction 69,370 bitcoin.
Your thoughts on these.

this is too dangerous. what the American government has done clearly violates the code of ethics for bitcoin owners. auctioned in large quantities. while the market experienced a sizeable increase. This means that so far the US government has deliberately detained the confiscated bitcoins and took advantage of when the bitcoin price rose, then held an auction.

They don't care about that. They don't even care much about cryptocurrency. They can do whatever they want with those Bitcoin without considering anything since they're can and nobody can stop them. We can only hope that those Bitcoin gets into the right hands. It's better than US holding that amount of Bitcoin.

Anyway, I doubt that there will be massive dumping. Most likely these bought Bitcoin in the auction are going to get hold.

SpanishSoldier

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These don't hit the retail market directly. So, price will remain unaffected.

fiulpro

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If the news is true , then they did wait for the all time high to auction bitcoins , this precisely show their double standards, on one side they are not openly supportive of the cryptocurrencies like bitcoins and on the other they waited for the perfect opportunity to gain some profits. Well this is maybe going to change the perception of the government , these bitcoins can help the government and the people at the time of the pandemic for sure and that is a good thing but on the other hand they have to accept it too.
Plus ofcourse things like these happen in the past all the time and I fail to understand why instead of auctioning them for money they keep bitcoins and other cryptocurrencies as an investment for the future since we are always aware of how it's usage and benefits have spurt up in just few years. They should more or so make an investment in bitcoins too!! This will be more beneficial for them and can provide stability to the people and might even attract more customers...but then again...it's the government that we are talking about. Main thing : the price can fall down a little so we will have a perfect buying opportunity.

DdmrDdmr

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There are lies, damned lies and statistics. MTwain

It’s not nothing new. Confiscated assets are often auctioned, and specifically Bitcoin auction have been taking place for some time. This is an example of a 4K BTC auction that took place earlier this year:
https://www.usmarshals.gov/assets/2020/febbitcoinauction/

In the FAQs it states that:

Quote

• How did the USMS get the authority to sell these bitcoins?

The USMS authority to dispose of forfeited property can be found at 28 C.F.R. 0.111(i).

Which is supported by https://www.law.cornell.edu/cfr/text/28/0.111 (0.111(i)):

Quote

(i) Maintenance of custody, management control, and disposal of property and money seized or forfeited pursuant to any law enforced or administered by the Department of Justice, when the property is seized by the U.S. Marshals Service or delivered to the U.S. Marshals Service in accordance with regulations; and administer the Department of Justice Asset Forfeiture Fund.

The US government is not trying to prove anything. It does it with other assets such as boats, planes, houses, art. You name it.

Having said that, Pierre Rochard does have a point, and it may be time for countries to start making a reserve (if they are not already doing it). Read "Hard money you can’t f*ck with", and you’ll get an idea why.

By the way, probably (not) a coincidence that the 69,370 Silk Road bitcoins were given in by a so called Mr. X, and that now, a few weeks later, there are rumours of a presidential pardon for Ross Ulbricht …

Fesatmas

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Quote from: Obi theo on December 18, 2020, 12:06:19 PM

If this is actually true ,what is the US government actually trying to prove ?
With the increase recent increase in price the still want to auction 69,370 bitcoin.
Your thoughts on these.

this is too dangerous. what the American government has done clearly violates the code of ethics for bitcoin owners. auctioned in large quantities. while the market experienced a sizeable increase. This means that so far the US government has deliberately detained the confiscated bitcoins and took advantage of when the bitcoin price rose, then held an auction.
what is the American government thinking?

Obi theo

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With all the increase in price for the passed days the US government are still thinking of auctioning seized bitcoin worth $1.6 billon , the are advice to hold on to the bitcoin by a bitcoin maximist Pierre Rochard
Source : .https://cryptohision.com/2020/12/18/the-1-6-billion-silk-road-bitcoins-shouldnt-be-auctioned/
If this is actually true ,what is the US government actually trying to prove ?
With the increase recent increase in price the still want to auction 69,370 bitcoin.
Your thoughts on these.

Topic: Us government about to auction 1.6billon worth bitcoin (Read 220 times)