FBI sell-off may not be so bad for Bitcoin

[s_s]

There seems to be a lot of concern by some over the anticipated potential auction by the FBI of seized Bitcoins from the Silk Road.

On some level doesn't the potential auction actually validate Bitcoins as a valuable asset that the Federal authorities seem relatively certain to have some reasonable future as a legal way of transferring value?

If the FBI had seized a warehouse full of worthless balls of lint...there wouldn't be any discussion of trying to auction them off...nor would that be the case if they were illegal drugs or weapons. It seems to me that their action in many ways validates that they believe whoever buys these are going to be purchasing at the very least a "commodity" of some degree of lasting value that the government anticipate they will ultimately be able to tax etc.

I do understand the concerns about potential market disruption (and there may be some degree of that albeit I would imagine briefly)...but even there I think there will be some sensitivity as to how this is done so as to maximize return for FBI (and the commissions of the potential auction house that will handle the deal)...not to mention a desire of the FBI to avoid headlines reading that the FBI has pocketed millions from sales to US citizens of a next day worthless commodity.

In the long run it seems to me that the ultimate auction of these coins will lead to a lot of press that will be positive validation for Bitcoins and speak to the negative voices claiming it is a Ponzi Scam.

[Lethn]

By selling off all the Bitcoins they may well cause the price to crash a bit but in the long run they have just stupidly put all those coins back into circulation again so I don't think this will have any affect at all on Bitcoin in the long run, as for acknowledging Bitcoin, they may not be able to do it openly but your right in that they can't deny it has value because they've just admitted they're going to sell it for something.

[hilgi]

When is the auction?

[Cryptopher]

The price of Bitcoin will not be affected directly by the sale of the coins, unless they are sold on an exchange.

However, the price of Bitcoin will be most likely be affected by the FUD being spread, so yeah, that's about the sum of it.

[Zzzack]

I really don't see this as having much of an effect on the community or the price. The winning bidder will likely be paying near market level, and it would be stupid to sell them for any less than he bought for. Therefore I think the winning bidder will be someone who gets a 5% discount on a coin he would like to hold.

[BXecQsgdpKUIwBcQPo88]

Max Keiser has offered to buy them for 80 million dollars. They should take him up on his offer.

[diapers]

at least now btc can be considered commodity to be bought and sold if the government can do it

[inthemud]

at least now btc can be considered commodity to be bought and sold if the government can do it

Haha. Sorry to laugh but your statement is under the assumption that the public can do whatever the government can. If only that were true. Unfortunately, the government is above the law and can do damn well whatever they wish. Us little peons must obey their commands.

[s_s]

at least now btc can be considered commodity to be bought and sold if the government can do it

Haha. Sorry to laugh but your statement is under the assumption that the public can do whatever the government can. If only that were true. Unfortunately, the government is above the law and can do damn well whatever they wish. Us little peons must obey their commands.

I very seriously doubt that the FBI would sell something to a citizen (or most likely what will end up being multiple citizens) for potentially millions of dollars... that they then immediately remove all value to by telling them that they can't sell it to someone else.

[diapers]

at least now btc can be considered commodity to be bought and sold if the government can do it

Haha. Sorry to laugh but your statement is under the assumption that the public can do whatever the government can. If only that were true. Unfortunately, the government is above the law and can do damn well whatever they wish. Us little peons must obey their commands.

I very seriously doubt that the FBI would sell something to a citizen (or most likely what will end up being multiple citizens) for potentially millions of dollars... that they then immediately remove all value to by telling them that they can't sell it to someone else.

lol it was a joke and i succeeded in making someone laught

[milkmanone]

Good distribution i say, have anyone been watching the hearings/panel of bitcoin lately?

[bitbitz]

Lets hope not!

[yatsey87]

Depends how how and who they sell them to. Could be good publicity for Bitcoin if it gets a lot of media attention.

[Sonny]

Depends how how and who they sell them to. Could be good publicity for Bitcoin if it gets a lot of media attention.

The bitcoin would be auction off, so it will definitely grab lots of attention around the world.

[cshlock]

all they did was give more buying opportunities.

[yatsey87]

When is the auction? Isn't DPR suing for them back?

[miners78]

They wont sell it on an exchange, so unless the person who gets them does, it wont really affect much.

[BurtW]

So you do not have to guess at the exact number of BTC and their current market value:

The two addresses in question are the two addresses that are owned by and set up by the FBI.  As they found BTC they transferred them to these two addresses that they control.  I do not know exactly how they found/got the BTC to transfer them, but the fact remains that they control the two addresses:

https://blockchain.info/address/1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX

about $ 23.2 million from the Silk Road web site/server.

https://blockchain.info/address/1FfmbHfnpaZjKFvyi1okTjJJusN455paPH

about $ 112.8 million from DPR himself.

They have permission from the courts to auction off the smaller amount - the amount they took from the silk road server.  The larger amount is tied up because DPR has claimed ownership of them.

So the question is:  When is the auction and on which of the various government auction sites will the auction be held?  If anyone has a lead on this information let us know.  I want to bid on these!

EDIT:  Most recent info says the auction will be done by the US Marshals on their web site.

[galbros]

They may not just auction them if they can negotiate a deal with another large holder of bitcoins, e.g. the Winklevoss.

[BitWinner]

They may not just auction them if they can negotiate a deal with another large holder of bitcoins, e.g. the Winklevoss.

Or Max Keiser.

I'm very curious to see how all of this will play out...