Question on Governemnt's Sales of Seized Bitcoins

[jrrsparkles]

These auctions should be widely promoted, so the news could reach the maximum number of potential buyers as possible, increasing the value the government would raise with the sale. However, since these deals are too good for the buyer compared to market's prices, these auctions happen and most citizens don't even know about that.

The auctions are public as I said so anyone with the money can bid so whoever is going with the highest bid will get that if people are not aware of such auctions it's their ignorance that causes them loss but sure they are not the actual person who is going to bid on these. The actual bidders are aware of them and have a pile of cash with them which they usually keep making so another reason why the rich get richer.

[Sim_card]

These auctions should be widely promoted, so the news could reach the maximum number of potential buyers as possible, increasing the value the government would raise with the sale. However, since these deals are too good for the buyer compared to market's prices, these auctions happen and most citizens don't even know about that.

The auctions are public as I said so anyone with the money can bid so whoever is going with the highest bid will get that if people are not aware of such auctions it's their ignorance that causes them loss but sure they are not the actual person who is going to bid on these. The actual bidders are aware of them and have a pile of cash with them which they usually keep making so another reason why the rich get richer.

The auction price is not for all,only for some selected high profile investors and it is done strictly by invitation because we are talking about millions of dollars. It do normally start from a low price so that it can have the value of auction in it. It is finally sold to the highest bidder but at a low price compared to the current price of bitcoin at the period.

[Cookdata]

If you visit the US department of Justice website, you will see a lot of press releases about the US seizing bitcoins. The US government has more bitcoins in her possession than any other any nation in the world as state in a Forbes article. According to this Forbes, the US government is sitting on a stash of 207,189 bitcoin, worth $5 billion, by far the largest such state-owned hoard.

Between 2011 - 2023, the U.S. has auctioned of some bitcoin holdings said to be worth $366.5. million. Other countries that have seized and sold off bitcoins holding are Australia, Germany, Netherlands. I want to know, when the government of a country who have seized bitcoins decide to auction it off, do they auction the bitcoin based on the price as at the time it was seized or at the current market price which is the time it is being auctioned off?

Cited Sources
- https://www.forbes.com/sites/michaeldelcastillo/2023/06/16/us-government-owns-way-more-bitcoin-than-any-other-countryso-why-arent-they-selling-it/?sh=33e7184e1f32
- https://search.justice.gov/search?utf8=%E2%9C%93&affiliate=justice&query=U.S.+Seizes+Virtual+Currencies

Auction is all about demand, the amount the players are bidding and whoever does the last call without anyone interfering in the bidding price wins the item. However, before they start, there is going to be a floor asking price that can't be changed lower at an initial launch. For instance, if the US government decide to raise some revenue through the seize bitcoin, they can decide to sell 50 from their balance and put the initial price at $15k, you know everyone will want to have it and that is how more bid will keep coming until the last person doesn't have a competitor bidding for the price again and the last person will be the person the bitcoin will be sold for, anyone can bid the bitcoin for any price as long as it is above that $15k floor price.

The problem with auctioning is that only the rich and invited members are always allowed to visit such places, a common guy like you and I wouldn't get the chance. Funny how people's bitcoin where seized for the benefit of tax and rich men, spit on these old men.

[blckhawk]

The highest bidder will win the auction. the process is certain as with the auction of other confiscated goods which can be in the form of physical assets. house or car.
not everyone can participate in such an auction, one may have to have a particular membership. and about the price, usually the committee will determine the initial price first, I don't know where to start. but to make it more attractive, of course, it must be below the market price. and competition from bidders that will determine price increases.

Wow, so if there's bidder conspiracy, you can easily buy large amounts of bitcoin at the price of a dilapidated car if you can. That's pretty cool. I haven't participated in any government sponsored auction but don't most of them start the bid price at an out of touch price? I've seen one video of impounded motorcycle auction and they're selling junks at a premium. Regarding membership, I don't think that you need to have any to participate in a government auction, you just need to know where to go and where you can register.

[Woodie]

I want to know, when the government of a country who have seized bitcoins decide to auction it off, do they auction the bitcoin based on the price as at the time it was seized or at the current market price which is the time it is being auctioned off?

When offloading such coins on an auction platform,  it can not be sold based on market value as this could change the nature of the transaction and I believe government seized items all go through public auctions to avoid any conflict of interest from within...though to protect the market they could reserve a minimum selling price to avoid crashing our crypto markets as they are stake holders in this

[Z-tight]

Regarding membership, I don't think that you need to have any to participate in a government auction, you just need to know where to go and where you can register.

Yeah you need to register for approval to be able to participate in a BTC auctions by the U.S. government, you'll also have to make a deposit of $200,000 to be able to participate, if for any reason you are disqualified from the auction or you don't win in the bid, your $200,000 will be returned to you.

The problem with auctioning is that only the rich and invited members are always allowed to visit such places, a common guy like you and I wouldn't get the chance. Funny how people's bitcoin where seized for the benefit of tax and rich men, spit on these old men.

I don't think this is a problem, the U.S. government usually sells a large amount of coins, and the auctions are online and open, but you'll have to make an initial depost of $200,000 to just participate in the auction, "common people" cannot afford that, neither do they have the money to buy the coins that's being actioned. The "common guy" must not buy BTC's from government auctions if truly that's their only hinderance, they can purchase through exchanges or OTC, but that's not it, the amount in question here can only be purchased by the rich and also by institutions.

[Blitzboy]

value's transient nature takes center stage. When governments, like the U.S., seize these bitcoin, they often move to auction them. They don't live in the past. Auctions reflect the market's current mood, the price now, not the ghost of what was. Bitcoins, seized in years gone by, don't carry a timestamp. The market speaks in the present tense. So, the U.S., Australia, Germany, or the Netherlands, they all sell Bitcoin by the present market rate

It's akin to fishing. When you catch a big one, do you measure its value by the time spent waiting, or by the weight at the dock? The weight, always. That said, numbers, like that $366.5 million, can deceive. It's easy to mix meanings. Auctions, seizures, valuations - all complex, all interwoven. But remember, Bitcoin's nature, its essence, defies simple definitions A note, though: even with the crispness of numbers, there's room for error. With Bitcoin, the only certainty is uncertainty. One must tread wisely, but also with fervor. The future's never written, not in Bitcoin, not anywhere.