It will be auctioned off like other forfeited property.
Correct, this is the most likely scenario.
I guess they could make 14 lots of 10,000 BTC each.
Topic: What happens when the US Government liquidates 144,000 BTC? - page 3. (Read 3417 times)
Correct, this is the most likely scenario.
I guess they could make 14 lots of 10,000 BTC each.
They can hold them, never release them. BTC has an actual limit in quantity. Having 144,000 of them is kind of like holding a hostage.
US Government does NOT like BTC remember.
US Government does NOT like BTC remember.
It depends on the liquidation strategy, if they smell in small peices and place gradule sell orders, then nothing much, slower growth.
If the dump into the buying market it will be the same as when a whale sells, the market will drop and probably rebound over time
If the dump into the buying market it will be the same as when a whale sells, the market will drop and probably rebound over time
What kind of effect will this have on the Bitcoin economy? Holding so many coins give them immense power over the entire Bitcoin economy, as they're able to rash the market whenever they decide to pull the trigger. Has anyone pondered what would happen to the bitcoin economy once the Ulbricht trial is over, and the coins are liquidated?
They won't sell them on the exchange. It will be auctioned off like other forfeited property. If you want to participate you will wire earnest money to the US treasury in advance.
You don't really think the sovereign nation of the United States is going to transfer >$200 million worth of coins to some place like BTC-e just so the operator can say "oops we got hacked" and retire the next day do you?
What kind of effect will this have on the Bitcoin economy? Holding so many coins give them immense power over the entire Bitcoin economy, as they'd be able to crash the market whenever they decide to pull the trigger. They may try to sell them off slowly... or maybe they won't. These are bureaucrats we're talking about, who are beholden to a lot of powerful people. Has anyone pondered what would happen to the bitcoin economy once the Ulbricht trial is over, and all the coins are unloaded?
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