FBI U.S. Marshals Auction Prices Leaked! (Bullish)

[rapport]

Are you even aware of the type of auction this was? It was a Dutch auction - all winners paid the price of the lowest winning bid. So, even if 1 bidder offered a crazy $10,000 per coin, they would not pay that much unless all other bidders were equally crazy.

Where do you get the info about Dutch auction?

[rapport]

900 ! lol

Yep 900 doesn't seem to make sense because if they only wanted 1 block, you would aim to bid in the middle.
It doesn't make sense for them to think that a $900 bid would be in the middle amongst the top bidders.

[Lauda]

This is just someone trolling.

[Elwar]

Are you even aware of the type of auction this was? It was a Dutch auction - all winners paid the price of the lowest winning bid. So, even if 1 bidder offered a crazy $10,000 per coin, they would not pay that much unless all other bidders were equally crazy.

Where do you get the info about Dutch auction?

I think he means a Dutch oven.

Similar but very different.

[Shawshank]

Are you even aware of the type of auction this was? It was a Dutch auction - all winners paid the price of the lowest winning bid. So, even if 1 bidder offered a crazy $10,000 per coin, they would not pay that much unless all other bidders were equally crazy.

Where do you get the info about Dutch auction?

I don't think it is a Dutch auction. I believe the proper term is "generalized second-price auction" a.k.a. "second item auction".

[BurtW]

It's like when you bid on eBay. No one bids $900 for anything except morons because if you expect it to go for around $900 someone will bid $901.23 and when you snipe $900 at the last second ebay automatically places their bid and you lose for $1.23

Are you even aware of the type of auction this was? It was a Dutch auction - all winners paid the price of the lowest winning bid. So, even if 1 bidder offered a crazy $10,000 per coin, they would not pay that much unless all other bidders were equally crazy.

Where do you get the info about Dutch auction?

I don't think it is a Dutch auction. I believe the proper term is "generalized second-price auction" a.k.a. "second item auction".

I know it is so much more fun to just make shit up and "have an opinion" but if you really want to know read this:

http://www.usmarshals.gov/assets/2014/bitcoins/faqs.pdf

And, if you are too damn lazy to read three whole pages of text:

7. How does the auction process work?
 
This is a sealed bid auction. You will not have the opportunity to view other bids. You will not
have the opportunity to change your bid once submitted.

[crazy_rabbit]

Yeah, so in a blind auction you're even more likely to bid $901 ... because what if some guy bid $900 too

Or a $100000.01 because well you know what if some guy bid $100000 too.

It's a blind auction. They bid what they think it's worth in relation to the amount of risk they want to take and their expectations of growth. If it's really 900 for all the blocks, it means they scoop up 30K in BTC at a price thats $300 less then the all-time high. Which is a great deal considering even at the all time high Pantera strongly believed they were only at the start of Bitcoin.

[gondel]

hI,
Actually when we will know the actual price of the BTC on this auction?
Are we even to know that or it will be only rumors about this?

[2double0]

900 is wayyyyyyyy too much and cant be true.

[kokojie]

They might bid $900, but it doesn't mean they will pay. It could just be a shill company driving up bids.

[lihuajkl]

If the prices is true, the FBI is big winner. On the other hand,it will push the price a lot.

[hellscabane]

Trolling thread to get all your hopes up. No real bidder will put in a bid at such organized numbers, and nearly all of them too. Btw can someone do a quick calculation on what the price would be if 30k btc were bought from the current market, assuming current price is $620?

30k * 620 = $18,600,000  ?

I think he was more asking what the cost would be if you bought up all the Bitcoins currently at market until you get to 30k BTC. At this point, there is only ~2k BTC visibly liquid on exchanges at around the $620-$630 price range. When I last checked, Bitstamp's orderbook was at ~7k BTC and the price stretched to ~$750 with a total orderbook value of around $4.7M. Using an extrapolative method (using a linear-logarithmic stretch fit), I got a value of ~$25.8M yielding an average value of ~$840.

Although upon first glance $900 seems quite ludicrous, with the available liquidity, 30k at $900 is actually less crazy than it seems.

As a note, if there are more entries available in Bitstamp's orderbook, this method could be made more exact. And if there is way more liquid coins than on Bitstamp, then the average price of my calculation should be significantly less.

[allthingsluxury]

Hmm interesting, but I don't know how valid those numbers are. Seem odd.

[juju]

haha the best comment:

 "Don't believe everything you read on the Internet!" - Thomas Jefferson

[franckuestein]

Maybe the offer of 900$ coming from Pandora can be made because of marketing purposes & some future intentions.
For example: that auction news are going to be posted in some important press resources and media so... being the one that won could be beneficial for Pantera or the one that present the best offer.

Now everything is leaked and [removed] information so we'll wait for an official confirmation.

[hellscabane]

Hmm interesting, but I don't know how valid those numbers are. Seem odd.

As I noted, these numbers are only based on visible data. I just checked not so long ago again and there is ~15k BTC that is currently on sell orders on BTC-e and Bitstamp. So take these numbers with a grain of salt.

[zimmah]

They might bid $900, but it doesn't mean they will pay. It could just be a shill company driving up bids.

how do you imagine that works with a blind auction?

also, they'd lose their $200k for nothing if they do that.

[Liquid71]

It makes no sense

bidders in an auction don't bid like that.

It's like when you bid on eBay. No one bids $900 for anything except morons because if you expect it to go for around $900 someone will bid $901.23 and when you snipe $900 at the last second ebay automatically places their bid and you lose for $1.23

You're telling me a firm like pantera doesn't have a single person who's ever been outbid on eBay and still bids like my grandmother who only just found the internet

It's a blind auction, and only 1 bid allowed.  Just make your bid and hope for the best. 

There is no transparency like eBay,

This
And even if it was like Ebay sniping on Ebay doesn't actually work, you only win if you actually bid higher doesn't matter when you place the bid..

[BurtW]

we'll wait for an official confirmation.

They might bid $900, but it doesn't mean they will pay. It could just be a shill company driving up bids.

RTFF (Read The Fucking FAQ)

http://www.usmarshals.gov/assets/2014/bitcoins/faqs.pdf

[FRNZ]

this is a great chance for someone to troll and drive the price up. most likely the case.