If FBI dumps 144,000 bitcoins, bitcoin will crash once & for all!

[Lloydie]

You are shorting Bitcoins? Hahaha... What's your business?

It's not my business, but something I do on the side as a sort of hobby. Just made another nice short from 805 to 785.  

Shorting bitcoin is so easy as of late. Bitcoin needs to learn its place.

Much easier to hold from $100 to $1000. I guess you enjoy the challenge of risking unlimited losses.

Seriously, bitcoin should learn its place?!? Where do you come from? Bitcoin is a decentralised peer to peer network. It's everywhere. No government can stop it without damaging the Internet and even then bitcoin will still exist. You cannot stop something that is essentially a protocol. It is bigger than government because people choose to use it.

Once people understand that bitcoin is a transaction system that does not rely on third parties, why would they want to rely on third party fee clippers?

[Dalmar]

Much easier to hold from $100 to $1000. I guess you enjoy the challenge of risking unlimited losses.

Seriously, bitcoin should learn its place?!? Where do you come from? Bitcoin is a decentralised peer to peer network. It's everywhere. No government can stop it without damaging the Internet and even then bitcoin will still exist. You cannot stop something that is essentially a protocol. It is bigger than government because people choose to use it.

I used to hodl for quite a long time. But recently I just can smell doom everywhere. Shorting has been far more profitable since December. Using our proven martingale maxleverage SHOTR strategy you could become even more wealthy, as is confirmed by our facts and all the bad and confirmed news.

[Lloydie]

Much easier to hold from $100 to $1000. I guess you enjoy the challenge of risking unlimited losses.

Seriously, bitcoin should learn its place?!? Where do you come from? Bitcoin is a decentralised peer to peer network. It's everywhere. No government can stop it without damaging the Internet and even then bitcoin will still exist. You cannot stop something that is essentially a protocol. It is bigger than government because people choose to use it.

I used to hodl for quite a long time. But recently I just can smell doom everywhere. Shorting has been far more profitable since December. Using our proven martingale maxleverage SHOTR strategy you could become even more wealthy, as is confirmed by our facts and all the bad and confirmed news.

Ok. Fair enough. Explains the FUD and all that. Good luck with it. I still reckon you're better off hodling. Won't be long before bitcoins becomes its own investment asset class.

[BurtW]

They said that they won't sell though any market echages... But with a bidding. That is more likely not to cause a crash.

The rumor (from above) is that they will be holding the auction at the US Marshals web site.  They have several different government auction web sites to choose from.  Once I learn for sure which auction web site they will be using then I will register there, do a small "test" auction on some random item to learn the ropes of the site and then get ready for the big day.

[Singlebyte]

They said that they won't sell though any market echages... But with a bidding. That is more likely not to cause a crash.

The rumor (from above) is that they will be holding the auction at the US Marshals web site.  They have several different government auction web sites to choose from.  Once I learn for sure which auction web site they will be using then I will register there, do a small "test" auction on some random item to learn the ropes of the site and then get ready for the big day.

Almost smells like a HoneyPot if the government is having their own auction site where you have to register.  Great way for them to collect data on bitcoin users!

[BitchicksHusband]

Well, FBI is not going to sell them at 800 a piece either.
And I don't see anyone with sense purchasing them at exchange prices.
I bet they will sell them at around $50 each, and the buyer will list them on the auctions for $200 each to make a quick profit.

This isn't allowed by law.  There is a minimum percentage of market value that they are required to sell for (I believe it's 40% or 60% but don't quote me).

Under that scenario, the minimum they could offer them for would be in the $300 range.  And since they are all auctions, the price should equalize out to what they are worth at the time.

[PenAndPaper]

I think it will crash more because of the announcement than the actual sale.

[BitchicksHusband]

You are shorting Bitcoins? Hahaha... What's your business?

It's not my business, but something I do on the side as a sort of hobby. Just made another nice short from 805 to 785.  

Shorting bitcoin is so easy as of late. Bitcoin needs to learn its place.

And pretty soon Dalmar will learn his place...

[BurtW]

They said that they won't sell though any market echages... But with a bidding. That is more likely not to cause a crash.

The rumor (from above) is that they will be holding the auction at the US Marshals web site.  They have several different government auction web sites to choose from.  Once I learn for sure which auction web site they will be using then I will register there, do a small "test" auction on some random item to learn the ropes of the site and then get ready for the big day.

Almost smells like a HoneyPot if the government is having their own auction site where you have to register.  Great way for them to collect data on bitcoin users!

Of course you have to register and give them all your information.  It is a standard government auction with all the standard AML/KYC/IRS reporting requirements.  Just like buying a boat, car, helicopter, jewelry or anything else they confiscate.  They auction off stuff all the time on their various web sites.  This is just another auction to them.  I just need to know exactly which web site they will be using and the rules of the auction.

[broken_pixel]

Buy low sell high. . . . . .

[Singlebyte]

They said that they won't sell though any market echages... But with a bidding. That is more likely not to cause a crash.

The rumor (from above) is that they will be holding the auction at the US Marshals web site.  They have several different government auction web sites to choose from.  Once I learn for sure which auction web site they will be using then I will register there, do a small "test" auction on some random item to learn the ropes of the site and then get ready for the big day.

Almost smells like a HoneyPot if the government is having their own auction site where you have to register.  Great way for them to collect data on bitcoin users!

Of course you have to register and give them all your information.  It is a standard government auction with all the standard AML/KYC/IRS reporting requirements.  Just like buying a boat, car, helicopter, jewelry or anything else they confiscate.  They auction off stuff all the time on their various web sites.  This is just another auction to them.  I just need to know exactly which web site they will be using and the rules of the auction.

I didn't quite mean it like that. (Although after reading my post it does comes across like that)  I realize governments auction stuff off all the time.  I meant this is a perfect opportunity for them to find out who/what/where Bitcoins are being bought.  They will gain a Birdseye view of what is taking place in the crypto coin market.  Just like they keep tabs on all gun owners, they will know who is into crypto currencies.  May or may not be bad....just depends on how they use the information gained.

[keithers]

The market would tank temporarily if this happened and within a week (or less), it would be back up to the current price it is right now.   There are millions of people around the world sitting on the sidelines (some with a lot of money, and some with only a little money), all waiting for a steep decline in prices so that they can invest. 

If it crashed that hard, I know for a fact I would be putting a lot more money into the exchanges, and fast...

[R2Pleasent]

Believe it or not, the FBI is not going to dump 144,000 BTC on an exchange in a dump.  Their job is to maximize revenue from the sale, and you can guarantee that someone is responsible for researching the most efficient way of doing this.  The reality is that for these size transactions, exchanges are not sufficient.  They are sold privately, in chunks of maybe ~10,000 BTC each.  Who knows what they'll actually get for them.  The simple movement within the Blockchain when the sale occurs will almost certainly drive prices down.  The buyers will be smart to hold onto the coins and wait for the initial fear to settle down before actually beginning to liquidate the coin.

If the market can't handle ~1% of BTC being sold then at the end of the day it's a pretty shitty market to begin with.

[JimboToronto]

I used to hodl for quite a long time.

How many years?

[Lloydie]

Believe it or not, the FBI is not going to dump 144,000 BTC on an exchange in a dump.  Their job is to maximize revenue from the sale, and you can guarantee that someone is responsible for researching the most efficient way of doing this.  The reality is that for these size transactions, exchanges are not sufficient.  They are sold privately, in chunks of maybe ~10,000 BTC each.  Who knows what they'll actually get for them.  The simple movement within the Blockchain when the sale occurs will almost certainly drive prices down.  The buyers will be smart to hold onto the coins and wait for the initial fear to settle down before actually beginning to liquidate the coin.

If the market can't handle ~1% of BTC being sold then at the end of the day it's a pretty shitty market to begin with.

I believe the fed doesn't have the authority to sell all 144k Btc. Only 27k or something like that. The rest is still being disputed by DPR.

[JimboToronto]

I believe the fed doesn't have the authority to sell all 144k Btc. Only 27k or something like that. The rest is still being disputed by DPR.

They can't sell DPR's coins until he's convicted in a court of law.

The only coins they can sell are those whose ownership is unknown and remain unclaimed.

[BittBurger]

You would buy hundreds of bitcoins at around $100 each?
What, everyone suddenly has $50,000 lying around they can freely spend?

Yes.

[Lloydie]

I believe the fed doesn't have the authority to sell all 144k Btc. Only 27k or something like that. The rest is still being disputed by DPR.

They can't sell DPR's coins until he's convicted in a court of law.

The only coins they can sell are those whose ownership is unknown and remain unclaimed.

People should claim their btcs, IMHO.  Just because someone has an account at the SR does not mean one has committed a crime.  The crime is committed only when something is purchased that is illegal in the State that you live in.  Again, this is just conjecture from me.

[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 $ 24 23.5 million from the Silk Road web site/server.

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

about $ 120 114.6 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.

[BurtW]

You would buy hundreds of bitcoins at around $100 each?
What, everyone suddenly has $50,000 lying around they can freely spend?

Yes.

Some people do, some people don't.