Topic: What would be your SR auction bid? (Read 1571 times)

At first I "tradefarted" on the news of the auction. Immediately, I began talks with other much more savvy investors than me. Pretty much everyone with more experience indicated that the news of the sale is bullish for bitcoin.

First, it fully establishes that bitcoin is an item of value that has obviously matured since the seizure. The Feds are selling it for Federal Reserve Notes for crying out loud! It also establishes bitcoin as property (they do not auction cash), which I happen to think is very tax advantageous for average US citizens. Second, there is no way this much coin could move on the open market without effectively raising the market price substantially (if only for a few moments). A $2,000,000USD buy on Bitstamp would raise the price to about $645 or 10+% right now. That's about what 3000 coins would go for right now. Third, long term speculation on bitcoin is pretty f'ing bullish.

All that said, if the capital was available; I'd bid on all ten blocks of coins ranging from %25 under market to %25 over market at the time of the bid. Most of the big players will be employing this strategy.

I've read many people believing that this is an open auction with an auctioneer. It's not. It is a silent auction with bids submitted by email. There are ten blocks. You post a $200,000 deposit and submit the bid(s) by email. You get one bid per block. There are 10 blocks. 3000 coins per block on 9 of the blocks, and two thousand something or other on the tenth. If you post the $200,000 deposit, you can bid on all 10 blocks. If you win a block or more than one block, you had better be able to pony up very quickly or risk losing your $200K.

A tradefart is when a hodler sells on news that he/she has not yet analyzed. The tradefarter then buys back at market price upon realizing that they are an idiot. A wet tradefart is when the short term assumptions come true only to be counterbalanced by the reality of the market conditions.

Probably going into seizing more bitcoin efforts.

i don't think this money is going back to the taxpayers.. it's probably going into the FBI or some other government organization.

Why is it a silent auction?  How does that serve the taxpayer?

That would certainly be interesting to see large bitcoin holders sell to crash the price then purchase at a discount at the auction

I bid the future existence of the Federal Reserve.

we need to know the going rate on bitcoin at the end of the month to have a better idea what people are willing to spend on them coins. maybe the whales will tank the value of bitcoin to get better prices.

Welcome to the modern world: Investors are used to giving their info to regulated investment brokers. Many Americans wouldn't have a second thought about filling out a "legit" Gov't application.



Yes, 10-15% (or maybe even 50%) ABOVE the market price on the BTC exchanges.
Many wealthy people are hesitant to send large amounts of money to our currently available unregulated exchanges.

Would you give all your personal information to the government in exchange for bitcoins that they'll be monitoring specifically?

^^^ This

Only reason I think maybe over market value is because none of these big buyers could buy thousands of coins off a exchange without  the price going through the roof. 

My guess is 250 to max. 300$ per coin. It would be more clever to auction them
in smaller chunks, like 100 or 250 coins each.

But I'm really curious how the auctions will end  

If it is anything like what Feinstein pulled with selling the post office buildings then expect the bitcoins to go to insiders for atleast half their value.


The husband of US Senator Dianne Feinstein has been selling post offices to his friends, cheap.
http://www.eastbayexpress.com/oakland/going-postal/Content?oid=3713528



Feinstein's husband, Richard C. Blum, is chairman of C.B. Richard Ellis, or CBRE, the real estate firm hired in 2011 to serve as the exclusive agent to the Postal Service, selling facilities from post offices to plots of land worth hundreds of millions of dollars.

the real estate company undersold Postal Service properties, shortchanging the Postal Service on tens of millions of dollars.

In 2011, for example, the real estate firm sold a Seattle post office building assessed at $16 million for only half that


http://www.huffingtonpost.com/2013/12/12/dianne-feinstein-postal-service_n_4423045.html

That would be my guess also, but you never know.  Bitcoin is still a small enough market to be subjected to manipulation by whales, so I wouldn't be surprised if there was some foul play that week...

I don't think any bids are going much higher than $500. They have the benefit of exclusivity, which means less competition and less bids to fight against.

 maybe a bit lower, 600-ish range.

dont you think its a bit weird that bitcoin price dropped, just when whales are gonna start bidding for those coin ?
kinda longshor, but dont u think its possible they dropped the market price, just so that they could get better price on that auction..

i have no idea why people are saying in the 700's, especially with bitcoin being in the mid 500's today. how the f does that make sense to pay more than the market value + provide a 200k deposit?

10-15% below market price on the day of the auction

I seriously doubt the average per coin sale price is going to be higher than what you can pick them up for on an exchange...if anything they should be fairly well discounted from current market price at the time of the sale.

My Guess: $515 (presuming BTC is still around $560-$570 by then)

Legit coins, minimum effort, bought as a medium to long term investment - I suspect at least 1.5x market to secure them.