US court approves the sale of 69,000 Silk Road bitcoins

[pawel7777]

If they were going to create a reserve, the confiscation of assets such as this would be the only path to do so imo.  I dont see they can generate the funds to buy BTC in quantity otherwise.

Definitely not the only way, but keeping any seized bitcoins would surely make it easier than dumping them on the market just to buy them back later on (although if the timing is right, it could actually work out quite nicely).
But anyhow, if the target size of the reserve is said to be 1 million, and if they were to spread purchases over a longer period, say 5 years, with regular buys (DCA) the annual cost would probably be somewhere around $15 billion, which is a lot, but probably manageable, given it's a one-time expense and the holding would be expected to appreciate in value over time.

[PX-Z]

If they were going to create a reserve, the confiscation of assets such as this would be the only path to do so imo.  I dont see they can generate the funds to buy BTC in quantity otherwise.

Definitely not the only way, but keeping any seized bitcoins would surely make it easier than dumping them on the market just to buy them back later on (although if the timing is right, it could actually work out quite nicely).

Selling such amount will not held much effect in the market, but it could do huge effect if announced publicly. Also, selling this amount through bidding is different on having a sell order in any exchange, price probably will benless X percent (say 10-20% less)  on the current price.

[Greyhats]

didn't they do a public[private] auction last around, would assume they will do the same again should they proceed with CB as the facilitator.

[Iranus]

If they were going to create a reserve, the confiscation of assets such as this would be the only path to do so imo.  I dont see they can generate the funds to buy BTC in quantity otherwise.

What I wonder and I guess most of us don't know is whether the US constitution allows for the use of confiscated property as a national reserve? Like the German government selling 50kBTC because the country's constitution doesn't allow them to hold confiscated assets for too long. That makes me think that the US constitution might not allow it either. That is why I disagree with many people when they say that the US Department of Justice selling Bitcoin will affect Trump's Bitcoin reserve plan and this is a political motive from the Biden administration.

The United States holds over 8.1 trillion tons of gold and accounts for over 70% of the national reserves, they accumulate this gold by buying it. So I think if they want to have a bitcoin reserve, they will do the same thing they did with gold.

Print more money or sell gold to buy bitcoin, the US has more than 1 solution to get bitcoin reserves but the question is whether they are willing to add bitcoin to their national reserves?



https://www.bloomberg.com/news/articles/2024-11-14/trump-s-ally-lummis-pushes-to-sell-some-of-the-fed-s-gold-to-buy-bitcoin