FBI coins could sell for a premium

[Thylacine]

The auction is a giant stamp of approval, if not for bitcoin as a whole, than at least for the particular set of coins at auction.

I don't get this logic. It's neither approval or disapproval. It's just selling property. If the government sells a seized Ferrari - does that mean they implicitly approve of Ferrari?

u should rather use this example:

would the gov sell seized drugs?

Of course they wouldn't, drugs are illegal. Bitcoin is not - and has never been - illegal in the United States, so I don't see the 'approval' argument. Wasn't the legal designation of bitcoin as 'property' or something (IANAL) decision a while ago more of a stamp of approval than anything else?

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[Este Nuno]

Anyone expecting some Ebay sniping while the markets dance around in front of a live feed is going to be a bit disappointed.

It's sealed bids and it's quite likely they won't disclose the price unless there's a successful freedom of information request. We may remain in the dark about the price achieved for a long time afterwards, perhaps always.

Well, hopefully one of the bitcoin companies will give us a number at least. Either what they paid for them or what their highest bid was so we know a minimum amount that they went for.

I'd really like to know what their value is and I hope we get that information.

[Torque]

So let me see if I got this straight:

1)  People think that if these coins sell for a discount to market price, then they'll immediately get dumped on the market.

2)  But if these coins go for a premium over market price, then the buyer will hold them forever.

Completely binary outcome, eh?

_{(This short sighted thinking is why the majority of bitcoiners will never be wealthy)}

[maurya78]

Don't think the premium will be high though
Maybe 1 to 2%

[pummle]

There are such a vast number of bitcoins being auctioned in one go, the auction price could be more or less than the current market rate, but whatever price they go for, the market exchange rate will immediately go to that level. It will be interesting to see how this high-profile test of bitcoin's market price will turn out.

[Este Nuno]

So let me see if I got this straight:

1)  People think that if these coins sell for a discount to market price, then they'll immediately get dumped on the market.

2)  But if these coins go for a premium over market price, then the buyer will hold them forever.

Completely binary outcome, eh?

_{(This short sighted thinking is why the majority of bitcoiners will never be wealthy)}

Well no, but if someone did get them for under market value I would not be surprised to see them dump them on the market all at once in an attempt to induce selling and buy back again at a lower price once a sufficient amount of others have sold off their holdings.

It's an aggressive move but there are definitely people in the btc market that attempt to manipulate the market in ways such as that.

[ShakyhandsBTCer]

2)  But if these coins go for a premium over market price, then the buyer will hold them forever.

The reason that the coins would sell for a premium (I highly doubt they would) would be because they would be paying for something that an exchange could not otherwise provide. This would not affect the time frame of any investor of these coins

[lyth0s]

2)  But if these coins go for a premium over market price, then the buyer will hold them forever.

The reason that the coins would sell for a premium (I highly doubt they would) would be because they would be paying for something that an exchange could not otherwise provide. This would not affect the time frame of any investor of these coins

Well a second reason why they could potentially sell for a premium is that here is the opportunity to buy a large amount of coins without the market price going up. If you tried to buy that many bitcoins on an exchange in a short period of time that would cause the price to increase and you'd likely end up with less coins for your money.

[okthen]

I really think all the coins will go above market price.
Think about it, exchange free coins, a bunch at the time without affecting the market.
Plus the winner bidders will be those who believe btc will rise in price, so they'll hoard the coins for quite some time.

[oda.krell]

From the wall thread, where I didn't get any answer so far:

I tried to find out what the usual practice is of a USMS Asset Forfeiture auction. Did I understand it correctly that they usually don't publish the result of the auction, i.e. who submitted the winning bids, or the total sum received in the auction?

Anyone in here knows if we'll ever know what price the coins fetched?

[cooldgamer]

They're probably gonna get a decent little premium on the coins.  We've been in a (small) uptrend the past few weeks and this is a chance to buy tons of coins without placing a whale order that would start a rally.  I'd guess 5% or so, but we may never know by the looks of it

[Alley]

What happens next is whoever buys them "leaks" the premium price they paid thus causing the market to shoot up so there already in the black.

[bitcoinsrus]

What happens next is whoever buys them "leaks" the premium price they paid thus causing the market to shoot up so there already in the black.

Do you think it would go for a premium or for a steal. It would be nice to be over the value, but anythings possible. As for leaking, I don't know if the actual amt would be revealed. Would be nice to see who bought it and if they announce they would open an exchange or something.

any other comments on this topic?

[nwfella]

Really hoping for this scenario.  Would be far preferable to them getting for extreme discount and subsequently tanking price to eek a little profit out.

[Stevenrm87]

What happens next is whoever buys them "leaks" the premium price they paid thus causing the market to shoot up so there already in the black.

Do you think it would go for a premium or for a steal. It would be nice to be over the value, but anythings possible. As for leaking, I don't know if the actual amt would be revealed. Would be nice to see who bought it and if they announce they would open an exchange or something.

any other comments on this topic?

Couldnt the losing bidders tell everyone else what the winning bidders paid for them and who it was?

[bitcoinsrus]

What happens next is whoever buys them "leaks" the premium price they paid thus causing the market to shoot up so there already in the black.

Do you think it would go for a premium or for a steal. It would be nice to be over the value, but anythings possible. As for leaking, I don't know if the actual amt would be revealed. Would be nice to see who bought it and if they announce they would open an exchange or something.

any other comments on this topic?

Couldnt the losing bidders tell everyone else what the winning bidders paid for them and who it was?

I was under the impression that it was all sealed bids. This would mean like a private bid I guess. Then the auctioneers would probably look for best price.

Maybe the losers would know, I am not sure. If anyone knows more about this, feel free to answer

[smoothie]

lol Numismatic digital bitcoins....nice.

"Hey guys I bought my bitcoins from the US Government!"

 

[SirChiko]

I didn't think of this one before reading this topic, good point actually! But after that info leaked it seemed that supporters of bitcoin are trying to get them so we shouldn't be worried in any way.

[Torque]

Necro for the lulz.  

My my, I can remember vividly not long ago when people were screaming right and left that the selling price of the SR coins would be exactly known.  And screaming that it would actually matter to the market.  Now 3 weeks later, and not only was the final price/btc paid NOT revealed to the public, but it seems the Bitcoin community NO LONGER CARES and has completely forgotten and moved on quickly.  Short term memory loss much?  

Unlike the majority, I for one don't have a short memory. I can remember all the silly, ignorant FUD that has happened over the past year.  I would chalk all the past FUD as irrelevant, except for the simple fact that the sheeple affected the market directly with their outright stupidity.

The point is, FUD is completely irrelevant and should have no bearing on bitcoiner's long term market decisions.  It's fleeting and goes away quickly.  Please keep this in mind and let this be a cautionary tale when FUD rears it's ugly head again in the future, OK?

[Benjig]

So i wonder when will be the next block of 30k coins put in auction, there are 120k left.