Topic: US Marshalls auction SilkRoad bitcoins - page 4. (Read 5238 times)
Too bad its a silent auction. No bidding wars. 1 bid is submitted, highest bid wins.
I wonder if anyone will actually bid on them.
Did you really wonder?
SecondMarket is in:
Quote from: SecondMarket
"SecondMarket and the Bitcoin Investment Trust expect to participate in the auction and will allow others to submit bids for aggregation in the process"
https://bitco.wufoo.com/forms/participate-in-us-marshals-bitcoin-auction/Quote from: BarrySilbert
1/Announcement: @BitcoinTrust and SecondMarket's bitcoin trading desk will be forming a syndicate to bid in US Marshals bitcoin auction...
https://twitter.com/barrysilbert/status/477931080889012224Quote from: BarrySilbert
2/Register here to receive info about how to participate in the bidding syndicate for US Marshals bitcoin auction: http://bit.ly/1lzcWbI
https://twitter.com/barrysilbert/status/477931146030743552
I can easily see that some bitcoin companies will want to pick up a lot if they can get them for below market. Coinbase being one. They are constantly needing a bigger cold wallet. It would be good for them to have some padding.
One thing is for sure. Whoever buys these aren't going to be buying hotel rooms and cable TV with their bitcoins.
I wish my bank would give me a 2 million dollar credit line. I would bid, win, default on the loan, and run away until statue of limitations expired. Hahahaha
One thing is for sure. Whoever buys these aren't going to be buying hotel rooms and cable TV with their bitcoins.
I wish my bank would give me a 2 million dollar credit line. I would bid, win, default on the loan, and run away until statue of limitations expired. Hahahaha
Sorry if you consider it spam Holliday, it's a completely P2P platform so I'm just trying to give people the opportunity to match up with others. This is how prediction markets work, and ideally, if everyone participated, you would have your answer to how much the coins are sold for before they're sold.
People definitely won't get cheap coins this way. It's an auction, they'll probably end up paying more than they would on Bitstamp or another exchange.
 ___________ | SilkRoad coins will be sold above market value Options: Yes | No |
Lots of factors to consider, including price manipulation ahead of the action.
The price probably all depends on how much they go for and what the person does with them. If he dumps them we could see trouble.
Buying and dumping makes no sense as he is selling such an amount that he is driving down the price as he sells and so will get much less than he paid. Unless 'his' plan is to drive down the price and then buy back in from the panicking "dumb money" and in the end driving the price back up. If that's the plan I'm all for it. I'll end up with more bitcoin (buying low) and the bitcoin will be stronger for having appeared to weather another storm.Maybe the winner bidder wont have any idea what he's doing? I'm sure whoever wins them though will probably be keeping them as an investment. It'd be hard to sell many of them straight away as the price will go down.
I wonder if anyone will actually bid on them.
I guess there will be bidders, yes. If someone managed to get one lot for 300$/BTC, right now, he would make a nice profit by selling on the open market, even with slippage and falling prices.There is no cost for bidding and losing. There is paperwork and hassle and freezing 200'000$ for a month; but there are many people, including "professional" auction bidders, who are not scared by those things.
I wonder if anyone will actually bid on them.
Has this do s.th. with the dropping BTC price atm?
The price probably all depends on how much they go for and what the person does with them. If he dumps them we could see trouble.
Buying and dumping makes no sense as he is selling such an amount that he is driving down the price as he sells and so will get much less than he paid. Unless 'his' plan is to drive down the price and then buy back in from the panicking "dumb money" and in the end driving the price back up. If that's the plan I'm all for it. I'll end up with more bitcoin (buying low) and the bitcoin will be stronger for having appeared to weather another storm.Maybe the winner bidder wont have any idea what he's doing? I'm sure whoever wins them though will probably be keeping them as an investment. It'd be hard to sell many of them straight away as the price will go down.
My guess is that the auction will close quite a bit below market price. That seems to be the rule for government auctions in general.
It is unlikely that it will close above market price, because one can buy 3000 coins on the open market with a bit of patience.
Plus if the current downtrend/volatility continues until the auction, it would be very risky to buy such lots at or above market price.
Large investors who may need (say) 12'000 coins for some startup probably already have bulk sources, that sell at or below market price (e.g. miners), so they probably would not be interested in paying more at the auction.
Probably some of the lots will be bought by speculators who will then try to sell them on the open market, gradually.
It is unlikely that it will close above market price, because one can buy 3000 coins on the open market with a bit of patience.
Plus if the current downtrend/volatility continues until the auction, it would be very risky to buy such lots at or above market price.
Large investors who may need (say) 12'000 coins for some startup probably already have bulk sources, that sell at or below market price (e.g. miners), so they probably would not be interested in paying more at the auction.
Probably some of the lots will be bought by speculators who will then try to sell them on the open market, gradually.
The price probably all depends on how much they go for and what the person does with them. If he dumps them we could see trouble.
Buying and dumping makes no sense as he is selling such an amount that he is driving down the price as he sells and so will get much less than he paid. Unless 'his' plan is to drive down the price and then buy back in from the panicking "dumb money" and in the end driving the price back up. If that's the plan I'm all for it. I'll end up with more bitcoin (buying low) and the bitcoin will be stronger for having appeared to weather another storm.
The price probably all depends on how much they go for and what the person does with them. If he dumps them we could see trouble.
I'm not looking forward to what happens to the price after this auction. Look what happened just on the announcement.
After the auction, and something that can be touted as a resolution on 51% hashrate, the price will rally back over $600. I'm betting - literally - that the floor will be around $475.
I'm not looking forward to what happens to the price after this auction. Look what happened just on the announcement.
I wouldn't be surprised if they go for higher than market and that if one person is able to get multiple blocks. There are a lot of rich people that could put down a couple million and not even think about it. This is a perfect chance for big money to come into bitcoin.
Sukrim set up an interesting contract last night about the auction and pricing of the 'Blocks':
https://www.betmoose.com/bet/silkroad-coins-will-be-sold-above-market-value
Quote
If the price of 3000 times the "high" column of https://api.bitcoinaverage.com/history/USD/per_day_all_time_history.csv on the 2014-06-27 line is higher than the price for the most expensive "Series A" block of BTC auctioned, this bet is considered "YES", if the price paid for the block is exactly the same or lower than on the open market, it will be a "NO".
https://www.betmoose.com/bet/silkroad-coins-will-be-sold-above-market-value
Interesting to think how this will affect bitcoin prices
On the open market.
First instinct is to say OMG they are making huge sells.
Second thought is, it's a private sale, and will be met with a private buy.
It won't touch the open market.
On the other hand, investors that buy their coins
from the FBI arguably would have done so on the open
market and driven price up more, so we'd miss that...
...but... Then again, buyers may get a discount because
buying these coins are a big pain and less anonymous,
So may attract additional dollars into bitcoin. Also it
may generate press and more investors.
overall, I'm not expecting any huge price moves when
The auction takes place.
The news drives the price down as investors - like me - sell in anticipation of the price dropping (self fulfilling prophecy) and when the sell off slows we buy back in and the price returns to normal or slightly higher. Same old same old. On the open market.
First instinct is to say OMG they are making huge sells.
Second thought is, it's a private sale, and will be met with a private buy.
It won't touch the open market.
On the other hand, investors that buy their coins
from the FBI arguably would have done so on the open
market and driven price up more, so we'd miss that...
...but... Then again, buyers may get a discount because
buying these coins are a big pain and less anonymous,
So may attract additional dollars into bitcoin. Also it
may generate press and more investors.
overall, I'm not expecting any huge price moves when
The auction takes place.
they will go near market value, above or below, that depends on the demand. The fact is that if you try buying or selling this huge amount, you drive the price up or down respectively. If you tried buying this amount of BTC on the open market at once, you'd end up paying thousands and thousands on average per BTC.
So think about if folks, these auctions will have no effect on the market, stop biting your fingernails these auctions happen all the time for all kinds of things. No one is dumping anything.
So think about if folks, these auctions will have no effect on the market, stop biting your fingernails these auctions happen all the time for all kinds of things. No one is dumping anything.
Wish I could get in on this action.
Alas I don't have the minimum $200,000 to place a bid.
$200,000 is just the deposit in order to be able to bid. You will be bidding on a lot of 3,000 BTC so you will need somewhere between one and two million dollars cash (333 USD/BTC to 666 USD/BTC) in order to participate and have a chance of winning one of the 10 blocks of 3,000 BTC.Alas I don't have the minimum $200,000 to place a bid.
Yea I figured that $200k just gets you in the door.
That's why I'm sad, because I'm not rich...
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