|
BitTrade (OP)
|
 |
December 04, 2013, 11:51:39 PM |
|
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?
|
|
|
|
|
|
|
|
|
|
|
|
The block chain is the main innovation of Bitcoin. It is the
first distributed timestamping system.
|
|
|
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
|
|
|
DeathAndTaxes
Donator
Legendary
 Offline
Activity: 1218
Merit: 1079
Gerald Davis
|
|
December 04, 2013, 11:54:44 PM |
|
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? |
|
|
|
|
elasticband
Legendary
Offline
Activity: 1036
Merit: 1000
Nighty Night Don't Let The Trolls Bite Nom Nom Nom
|
|
December 04, 2013, 11:55:26 PM |
|
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
|
|
|
|
|
hottweelz
Member
Offline
Activity: 84
Merit: 10
|
|
December 04, 2013, 11:57:30 PM |
|
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.
|
|
|
|
|
countryfree
Legendary
Offline
Activity: 3052
Merit: 1047
Your country may be your worst enemy
|
|
December 04, 2013, 11:59:32 PM |
|
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. |
I used to be a citizen and a taxpayer. Those days are long gone.
|
|
|
|
BitDreams
|
|
December 05, 2013, 12:08:00 AM |
|
US Government does NOT like BTC remember.
That's not the impression I got after watching 6 hours of the CSPAN hearings on Bitcoin. Did you watch that? There's a link around here someplace... Here is day 2: http://t.co/0ek2nwimi5 |
|
|
|
|
zimmah
Legendary
Offline
Activity: 1106
Merit: 1005
|
|
December 05, 2013, 12:10:38 AM |
|
It's their unofficial reserve currency for if when the dollar crashes.
It's just a matter of time before the other mayor economic powerhouses (china, japan, EU) and upcomming markets (India, Brasil, etc) buy lots of bitcoin as well as a reserve currency.
it's indeed a pretty large amount (~0.6% of the 21 million and about 1.2% right now) but i doubt they'll use it to crash the market, it will likely not have a long term impact if they'd try that, especially not when we notice it's theirs.
Just a couple of people will get very cheap bitcoins before the market will recover.
|
|
|
|
|
|
beetcoin
|
|
December 05, 2013, 12:11:44 AM |
|
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.
huh? there hasn't been much indication that government is against BTC. and holding onto millions of dollars and doing nothing with it would be stupid. they might just auction the BTC to fund the FBI even more. |
|
|
|
|
hottweelz
Member
Offline
Activity: 84
Merit: 10
|
|
December 05, 2013, 12:11:58 AM |
|
IMO, if any government gets involved, its going to lose every positive factor that bitcoin advocates appreciate.
It will just become another currency.
|
|
|
|
|
|
beetcoin
|
|
December 05, 2013, 12:13:37 AM |
|
IMO, if any government gets involved, its going to lose every positive factor that bitcoin advocates appreciate.
It will just become another currency.
except that the government is unable to identify the identity of every bitcoin holder. oh, and they can just randomly generate new bitcoins out of thin air. |
|
|
|
|
|
C10H15N
|
|
December 05, 2013, 12:15:03 AM |
|
As I recall, the news of 144K bitcoin going from the possession of a drug dealer to the US government made the price go up.  |
Only when the tide goes out do you discover who's been swimming naked. -Warren Buffett
|
|
|
hottweelz
Member
Offline
Activity: 84
Merit: 10
|
|
December 05, 2013, 12:18:14 AM |
|
IMO, if any government gets involved, its going to lose every positive factor that bitcoin advocates appreciate.
It will just become another currency.
except that the government is unable to identify the identity of every bitcoin holder. oh, and they can just randomly generate new bitcoins out of thin air. but not after 21M right? |
|
|
|
|
|
beetcoin
|
|
December 05, 2013, 12:19:44 AM |
|
IMO, if any government gets involved, its going to lose every positive factor that bitcoin advocates appreciate.
It will just become another currency.
except that the government is unable to identify the identity of every bitcoin holder. oh, and they can just randomly generate new bitcoins out of thin air. but not after 21M right? i don't know where you are getting at.. are you implying that government might start mining bitcoins? |
|
|
|
|
zimmah
Legendary
Offline
Activity: 1106
Merit: 1005
|
|
December 05, 2013, 12:20:07 AM |
|
IMO, if any government gets involved, its going to lose every positive factor that bitcoin advocates appreciate.
It will just become another currency.
except that the government is unable to identify the identity of every bitcoin holder. oh, and they can just randomly generate new bitcoins out of thin air. but not after 21M right? the point is that dollars/euro's and any other currency is worthless because the fed/government can (and will) print unlimited amounts. they can not do that with bitcoins. So the 144.000 bitcoins is all they will ever have, unless they BUY more, just like everyone else. Or unless they use supercomputers to mine them, but their supercomputers are no match for our ASICs |
|
|
|
|
hottweelz
Member
Offline
Activity: 84
Merit: 10
|
|
December 05, 2013, 12:23:03 AM |
|
their supercomputers are no match for your ASICs?
|
|
|
|
|
|
SeanArce
|
|
December 05, 2013, 12:30:34 AM |
|
lol at all the unaware here. government officials had to have bought bitcoins
|
|
|
|
b!z
Legendary
Offline
Activity: 1582
Merit: 1010
|
|
December 05, 2013, 12:31:02 AM |
|
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.
Bitcoin is divisible. That will only increase the value of the remaining coins in circulation. |
|
|
|
|
ChessWhiz
Newbie
Offline
Activity: 31
Merit: 0
|
|
December 05, 2013, 12:35:28 AM |
|
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.
I believe this is the correct answer. It won't do much to the exchange rate, I think, because the buyer(s) may not sell them on an exchange, either. Of course, I could be wrong about that.  |
|
|
|
|
|
CEG5952
|
|
December 05, 2013, 01:24:10 AM |
|
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.
maybe they don't, but they do like seizing money. the feds love FED bucks. |
|
|
|
|
Ford
|
|
December 05, 2013, 01:25:36 AM |
|
By my understanding of the law. the "FBI" can not sell them until DPR is convicted, as if he is proved innocent, they may have to give them back (although i think this is VERY unlikely to happen).
I would estimate it will take at least 2 years to put DPR on final trial and get sentencing finalised (or aquittal) and officially have the funds confiscated (as i think they are just "seized" at present, and held.... awaiting further investigation outcome).
2 years is a long time in "BitCoin World" and the price is likely to rise quiet a lot in that time, amongst other developments!
I know the FBI have said they will sell them off, but i think they may reconsider if the price increases and other countries "participate" to a greater scale.
Holding 144,000 BTC could put the US in a very good position financially and in "BitCoin World" and i think the "smart derision" would be for them to hold them.
In this time, i also think they are likely to confiscate more Coins.....
It will be interesting to see what they do with them! And good news if they do keep them (even though this wont be popular with BitCoiners)
|
|
|
|
|
