Bitcoin Forum

That it was sold 30% (!!!) above market price?  Could someone find any news links or any person from say CoinDesk confirm this?

Really?
It is not possible！

I heard even the bidders don't know the result until tomorrow, so your rumor is probably false.

One can easily, slowly buy 50k in the market without raising the price 30%, they don't need to do so in the auction. Personally i believe auctioned coins would be sold at lower price than the market.

Rumor only for now:

https://twitter.com/CryptoKees/status/573577241235423232

No confirmation from any news source yet.


This is the more moving piece of rumor/news though:

https://twitter.com/btcchina/status/573574299455455234

No one moves Bitcoin quite like China does...

That's a misleading tweet, the linked article was just "opinion" of a guy who invested in BTC. There is no official things from government. I thought BTCchina misunderstood "lawyer" to "law maker".

Yea, it's an old linked article an all, but you know speculators look at anything to get insider scoop.

Any tweet from a half way legit source, and they take it as gospel without real confirmation.

You know the saying...BUY THE RUMOR!

Noone can confirm since its just rumors started by people owning bitcoins and trying to increase the price.
Its in the hands of the participants now to manipulate the market a bit, since they are the only ones knowing the truth.

cheers

I don't know if we will know it but I don't see it so difficult it is not a high price for that huge amount of bitcoin,that would be pretty difficult to get

It is what it is friend it was a rumor but it could well be around that % either over or under lol If they wanted to sell 50k then the seller would have to give them a good deal as selling 50k would lose some of the value as well as if you buy 50k it will raise the price, the rumors are just common sense.

Why would anyone trust this?

http://s11.postimg.org/hsub9v603/rumor.png

The Sparood (https://bitcointalk.org/index.php?action=profile;u=174373) bitcointalk account links to the twitter account that the rumor came from (https://twitter.com/cryptokees)

http://s10.postimg.org/76hlcp9d5/rimor2.png
https://bitcointalk.org/index.php?topic=673734.msg7889951#msg7889951

He's not even a senior member.

The link in his tweet unshortens to http://www.coindesk.com/third-usms-bitcoin-auction-bidder-interest/ which makes no mention of 30% above market price.

Everything is based on the word of a full member account who was promoting a shitcoin like plankton.

It's quite possible.

Buying seized bitcoins creates prestige for the buyer, also it comes with some perks,
for instance; "US Government Launders Dark Money". Imagine how hilarious is that (US Government launders money for you).

They always sell for above market price.  Same would happen if you tried to buy 50,000 BTC from an exchange.  The benefit here is you are buying from the US government, so you don't have to worry about trusting some startup company with millions of your dollars.

Yes, but the rumor was based on a low ranking account here saying "anonymous source confirms". He's not speculating, he's saying he knows it's a fact because his highly placed "source" has confirmed it. Yeah right.

Yes they do, along with the trust, they won't be driving the price up while buying. But 30% is still a big amount that will be charged extra.

That can't be true 30% is way too much high ,the news isn't confirmed yet , so it might be just a Rumour

Yes , that does gaurantee the trust and that they will not loose it , but even if they decide to buy from exchange , they can buy in steps and save that , 30% is way to high to believe it !

lets see you can deposit several million into an exchange and buy online or buy through the government.... easily worth a premium to buy from a trusted seller like the US govt over BitTramp

So coindesk confirms the 30% over market price?

I don't get it, why would people buy it above market price? Might as well just buy it from exchange site.

Maybe they don't trust the current exchange sites. Especially if they are hedge funds/mutual funds/etc. dealing with other ppl's money. And maybe they're so bullish that they're buying from exchange sites too.

It isn't on coindesk, nor should it be if it is an unconfirmed rumour.
It seems really unlikely that someone would pay such a large premium.  I understand that it would be difficult to buy 10k or more on an exchange due to lack of liquidity, but 30% is ridiculous!

Apparently we should find out the results of the auction on Monday, I would expect some leaks before then, so watch out for some big buys in the mean time.  In penny stocks, usually the stock price rises or falls to the level of a placement shortly afterwards, I would expect something similar here, so 270+30% would be a rise to $345 or so in short order, that would be nice!

Wow really? i like the fact with have around 3 x the bidders vs last auction so i guess this rumor could be believable. 

There seems to have a stab to either let everyone start panic buying.
Remember? Buy on rumors?

I noticed this guy https://twitter.com/CryptoKees/status/573577241235423232  is followed by eric voorhees thats got to be a good sign unless he just started following based off the rumor lol

No, of course not. If the current bidding price is 10% or 20% above the market, why the hell would a sane person bid even more, rather than just buying directly from the market?

Buying 50k from the market would send the price sky high and you have to deal with exchanges.

It will be interesting to find out if it's true or not. It would not surprise me however at the same time I think 30 percent is a bit excessive when you can just slowly buy over the space of a month and pay maybe a 10 percent premium at most.

2 reasons, First you can't buy 50K straight from the market as the prices will increase by 10% even by buying 5K bitcoins.
And you will have to trust a large amount with a third party while doing so.

I noticed that guy was tweeting for free giveaways of plankton coins last summer. Anyone doing that is unlikely to be a big shot in the bitcoin world.

Yeah it is true. It's nice news in my opinion, it shows that some people are convinced that there will be an increase in BTC price of more then 30%.

Here is more about the auction.

http://www.coindesk.com/third-usms-bitcoin-auction-bidder-interest/

Yeah, I doubt it will turn out to be legit but it would be interesting if it where. I hope someone fairly high profile has bought them.

This is not strictly true, 5k if you was to buy all at once maybe, but no real traders i know do that very often what would happen is multiple buy orders across multiple exchanges and people would dump into them within a couple of days no problem.

Now the same can be said for those selling from the buyers! I would argue if i was a buyer go and try sell 50k on exchanges and see what price you get  ??? There is very little chance they paid over market more like under market value.

I heard Vladimir Putin bought them but I dunno.

Wow, why would someone actually pay 30% more while there are still some high orders available to be sold at lower prices (even if a pump takes place) which would not equate it to 30% above?

How many exchanges are there that currently have 50k bitcoins for sale at a fixed price? If you bought 1k bitcoins from any exchange, it would be EXTREMELY unlikely that the orders on that exchange will still be in the same price range. I just checked Cryptsy, yes a small exchange, but there isn't even 20 bitcoins available for sale there and if all those sold, the price would be pumped to 300. Buying all those coins you're already seeing a increase is 22%. There is no way 50k bitcoins WILL sell and still keep each bitcoin under $338 a piece.

Do you also realise how many dollars you need to buy 50k bitcoins? $13.3 million USD @ $266 a piece.

doesn't make sense at all. there is no need to pay a premium above market rate. that just doesn't sound right.
i would like to think the price is around or a bit under market value. it's an auctoin.

Bitstamp is now a low volume exchange and that had a 24h volume of 11039 BTC yesterday. The coins on sell orders are a small fraction of the coins o the exchange. People often directly sell into buy orders, and buy into sell orders. If you placed but orders across all major exchanges and spread them out over the course of a week then people would probably sell you 50k bitcoins without you pumping the price up anywhere near 30%. You would only pump the price up by buying directly into the sell orders in a short space of time.

To bypass interaction with exchanges. As a rich guy you dont want to risk all your fortune in shitty bitcoin exchanges that get hacked all the time.

I don't know how that could happen but I'm sure the buyers already set the target price or the maximum that they are willing to pay based on existing market price. Slightly overestimated by 5% might be possible, but 30%? I'm sure they have done their homework considering the large amount of money involved in the transaction.

So you are basically saying that the only reason one shall buy bitcoin from auctions like that is to buy large sum at once without manipulation bitcoin price? It may the case. But I find it easier to buy bitcoin from various exchanges in small packs say - less than 1k btc at once.

Exactly, always dig into the facts. The truth is out there!

It's very true, what we don't know if when and if the whales buying in the auction will dump, or hold.

When Bitstamp was hacked it had about 20k bitcoins in its hot wallet and far more than that in its cold wallet.

Bitstamp proved it had 194,933 BTC when it had an audit.

http://www.coindesk.com/bitstamp-audit-proves-behind-147m-mystery-bitcoin-wallet/

The sell orders on the books are a tiny fraction of the coins held by the exchange and sellers often dump directly into buy orders.

Far too risky. 1k at a time from various exchanges is still going to be 50 transactions spread across multiple exchanges. Again back to the 50k quantity bitcoin, if someone did have the capacity to buy it all at once, what would you need to say to this person to convince them that A; their details are safe with you, B; their dollars are safe with you and C; they are guaranteed to receive their 50k btc. This 30% figure being thrown around could be a security the client is willing to pay to ensure a 100% safe, true, legitimate sale of the bitcoin.

Someone else said "its an auction, its meant to sell under". Not true. I've been to private auctions, things like computers, furniture, TV etc sell cheap. Things like gold, jewelry and other items which are of true high value will generally sell quite close to their value. Some jewelry I've seen has been oversold in value simply because of what it is.

If the reason for paying such a high premium was because you can't get that high number of coin in the market right now, then I won't agree with it. Number one, you could spread the buying to different exchangers. You could also buy smaller amount, which cause the price to go up a little, and then wait for it to drop and then buy again when there's free btc stock. Or another way, buy different altcoins with usd for example like doge and then convert it to btc. But in no way, I'm going to pay for extra 30% just because of that reason.

I don't know the background of this situation with these coins but if there are people involved and their coins stolen, they will all be repaid. The rest of the money goes to the state or remains seized.

Wow really?

Was that from the seized coins of dread pirate roberts?

I don't think anyone is repaid, as it was coins confiscated from the silk road. And those are coins which people have used to buy drugs , and other illegal stuff.
None of them will be asking the government for their coins to be given back to them.

Bitcoiners will probably ask them back.

So the silk road site is now on the invisible internet? Or something?

Ah fair enough. I thought it was a scam situation. If this is the case then the money will go to the crown/state or seized.

I would doubt that, would you go into a auction and buy something with 30% higher prices than market?
 

All the amount was seized. In total there was around 173K of bitcoin that was totally seized in the last one year.

I still dont understand why it was auctioned instead of exchanged

Much more fun to hope that someone buys and offloads steadily, driving the market to ruin in a couple days or weeks. A man can dream, right? Sending them to the eater would be far too kind to the eminently courteous butt-crowd.

A syndicate led by Barry Silbert’s SecondMarket won bids for 48,000 of the coins for the second auction and Tim Draper won a bid for only 2,000 of the bitcoins on auction. 

The current auction sold for close or even above market price  {That should tell us something} The future is bright, when people bid above the market price.  ;D

Not a lot of people participated, so it's a good result.

 

To resume the thread we are not sure. ;D

The price is surely going up in the market so it could be true.

pump and dump, it will end up sub $100

I doubt we will go sub 200 firstly. Sub 100 is too far off for now.
Why don't you post this from your original account ?

If it's true that the price paid for by the auction winner is higher than the market price, then it should be good news. I've been reading some conflicting reports about the actual price paid and that gets me worried as well whether it will cause the bitcoin price to drop in few days to come. Also can somebody also confirmed what is the actual price paid for? Is that really announced to the media or made official?

It is not official, just rumors.