Silk Road Bitcoin Stash To Be Auctioned!

[MWNinja]

If I were the government I would fast track the SEC approval process for the various Bitcoin ETFs that are in the works, and then liquidate on Wall Street for maximum return.

[Enkel]

How do you think they would pick the lucky exchange? Such sales have to be as clean as possible and sending milions to an owner of a private exchange would raise some questions. Maybe if there was an official government owned bitcoin exchange, but since all exchanges are belong to private investors I can't see any other way than a public auction.

My thought was they could just put out a straight RFP (Request for Proposal) and making the responses public. The difference is that a RFP only requires a document that provides the information they need to pick an exchange (e.g. how much you'll pay/coin + service fees). All of that can be posted on line for everyone to see.

I guess one difference is that private individuals probably wouldn't go through the RFP process because it might seem foreign to them. I also wonder if the auction will be limited to US bidders or if it will be available globally?

I just looked at one of the auction sites routinely used by DOJ and it looks like they charge a buyer's premium ( "Ranging from 1% to 20%" ) instead of commission, so the buyer will probably be paying the fees.

[BTCisthefuture]

I'm interested in seeing what type of price bitcoin gets in an auction style format. Will it be cheaper than exchanges, the same, or more expensive?  If cheaper or more expensive than why ? 

I'll be bidding on them myslf until the price goes higher than what i can buy them at from coinbase .

[Kapz786]

Group buy anyone? lol

[maursader]

To me, all this news is "Bla bla blaaaa" - Why? Because this will bring the price down (media hype).. and guess what? The price is gonna go back up again. Sooooooooo... yeah. This isn't a real .. big thing to worry about. Things will be back to normal the same day, if not, the day after.

[User705]

I'm waiting until DOGERoad gets shut down and which government agent can keep a straight face announcing an auction for seized DOGE coins.   

[Enkel]

I'm interested in seeing what type of price bitcoin gets in an auction style format. Will it be cheaper than exchanges, the same, or more expensive?  If cheaper or more expensive than why ? 

I'm betting at least slightly below the going rate because (a) the buyer's premium that will be tacked on makes them want it cheaper, and (b) investors usually want a quick and BIG return on their investment. If they go over the current rate, they risk having to wait a longer time to finally be able to cash out at a respectable profit. If you aren't going to make a healthy profit, then why waste time with buying it at all.  -- Of course, all it will take is one (noob?) hedge fund manager to blow that theory out of the water with the belief that they can hold them until xx years and make the profit that way.

[Enkel]

I'm waiting until DOGERoad gets shut down and which government agent can keep a straight face announcing an auction for seized DOGE coins.   

So, had to Google that thinking... can't be real... you gotta love reddit ( http://www.reddit.com/r/dogecoin/comments/1tlie9/doge_road_in_place_of_silk_road_lol/ )

Now, I need to watch my cat when she sits on my keyboard. For all I know, she's posting poop on DOGERoad and I'll end up with all of my equipment confiscated while the darn cat just runs off on a yacht with her boyfriend and all their ill gotten gains.

[7Priest7]

SR is a nasty stain on Bitcoin's past.

Illegal content is a blemish on the torrent protocol?
People should stop putting BTC on a glass pedestal, it will break.

Anytime a decentralized system/network is created it will always be used for illegal activity.
Silk Road 2 already exists, new illegal sites pop up for BTC all the time.
The way drugs are distributed illegally irl is pseudo decentralized as well,
most dealers/druggies only know their supplier, rarely the whole chain of supply.

[gogxmagog]

I too want to know more about this auction.
Is it open only to US citizens?
How will they go about it so as not to crash the price?
could the rest of the community manipulate the market enough to short-change the FBI when they go to sell?
I would love to see a temporary crash, just long enough to ensure the feds only get about half or less the value of their coins.
Is this possible?

[7Priest7]

I would love to see a temporary crash, just long enough to ensure the feds only get about half or less the value of their coins.

When the government auctions things, they do not do it online.
There will be a auction at a physical place.
None of the bitcoins will be re-introduced to the market until the buyer(s) attempts to sell them.
If the buyer is wise they will slowly disperse the bitcoins ensuring they see their ROI.

If the SR operator was wise he woulda had his hardware encrypted,
and backed up in a way that if something like this happens somebody could move his BTC for him.

[Bitcoi2n2n]

I really hope this won't make the price crash.. If it will, then I can only say THANKS OBAMA!

[cybershawrk]

i wonder how much they will start the bidding at?

[EvilPanda]

I would love to see a temporary crash, just long enough to ensure the feds only get about half or less the value of their coins.

When the government auctions things, they do not do it online.
There will be a auction at a physical place.
None of the bitcoins will be re-introduced to the market until the buyer(s) attempts to sell them.
If the buyer is wise they will slowly disperse the bitcoins ensuring they see their ROI.

My thoughts exactly.

[Enkel]

They do sell assets online. Here is just a subset of the auction sites used (states can use their own sites as well):



Sorry about the image, but it was in a PDF file that is impossible to copy/paste from and I'm too lazy to type it out.