FBI Second round auction of 50,000 btc! Who is gonna win this?

[bornil267645]

Well it certainly not going to be me. Well it would have been if I could auction for the BTC !!!

[NEM minnow]

I doubt one person will buy them all for market price again.  The last guy got burnt and has like 1/3 of his money. 

That said, these auctions are actually good for the ecosystem I think.  It gives some big players a change to dip into the Bitcoin coin system.  There are some super rich people that can't be bothered with buying a few Bitcoins at a time.  This is an easy way for them to pick up 10 million worth of Bitcoin at once and not stress about it. 

[NEM minnow]

Also all the drug raid's goal is to seize assets/money, they dont want actually narcotic drugs because its worth $0 (they have to burn it). Assets/money will be in their pure profits. They even call it "pennies from heaven"

So really, its all a hunt to gain control of money so that others may not become as powerful and the drugs is just the reasoning, as is oil, gas, gold and other things of "value".

They have something called " civil forfeiture law" that allows them to basically rob anyone (seize your asset even you're not convicted of any crime)

That is very sad to hear. There was once a time where the people decided who ran a country and if they were not happy they would overtake such powers. They take the money on behalf of a country, yet the people receive 0% benefits from it even though their taxes/expenses pay for the people who go after these people.

Thank you for clearing that for me. Cheers!

oh I am sure there are lots of drug busts that didn't involve that much money, but really usually when they find huge amount of drugs, they also find huge amounts of cash. 

And really, what do you expect them to do with the drugs?  Sell them?  So of course the burn it.

And really, what do you expect them to do with the money?  Just give it back to the people they are arresting?  If that is the policy, it encourages people to actually break the law. 

Look, I think it is stupid that they are raiding people and arresting them and taking their money away.  I want to see that changed.  But really it isn't just a scam to get lots of free money.  Those DEA agents really believe they are doing good by taking the drugs off the street. 

[Flashman]

Moral of the story, if you notice your neighbour seems to employ a lot of strange looking "armed guards", don't ask him to keep your tax refuge valuables in his basement.

Why not? I'd think that armed guards are actually a good thing. But maybe it would be better if they were not so easily noticed.

Well the implication was they were not official armed guards, but thugs, mooks, mobsters, i.e. the neighbor an organised crime kingpin, ergo, WHEN the police raid you're SOL for getting your stuff back.

[Dabs]

Moral of the story, if you notice your neighbour seems to employ a lot of strange looking "armed guards", don't ask him to keep your tax refuge valuables in his basement.

Why not? I'd think that armed guards are actually a good thing. But maybe it would be better if they were not so easily noticed.

Well the implication was they were not official armed guards, but thugs, mooks, mobsters, i.e. the neighbor an organised crime kingpin, ergo, WHEN the police raid you're SOL for getting your stuff back.

Usually, organized crime have police in their payroll. If not, that isn't very organized or is small fries. Or they might have insiders who will tip them about the raid that is going to happen, before it happens, so the big boss is no longer there. Just the poor unfortunate fall guys, who will probably duke it out fighting against the police and die in blazing glory. Suicide by cop.

[allthingsluxury]

Now that's a lot of BTC! 

[Eisenhower34]

I doubt one person will buy them all for market price again.  The last guy got burnt and has like 1/3 of his money. 

That said, these auctions are actually good for the ecosystem I think.  It gives some big players a change to dip into the Bitcoin coin system.  There are some super rich people that can't be bothered with buying a few Bitcoins at a time.  This is an easy way for them to pick up 10 million worth of Bitcoin at once and not stress about it. 

It is rumored that Draper is going to bid for the coins being sold in this auction as well. Also IIRC bitcoin was trading around $650 when the USMS announced that one person won the all of the coins in the auction and bitcoin is now trading at around $380 so he lost closer to 40% then 2/3 of his money. It is also not known how much of a discount he got from his winning bid.

I don't think he will bid on all of the lots this time around as the price has generally been falling recently and he could have instead have been buying on an exchange during the recent "slow motion" crash

[illymoka]

I must have missed this, but how did the FBI get to Ross's bitcoins?  Did he voluntarily give them up?

The FBI has a lot of $5 wrenches.

or it could be a $ 0.05 plastic bag put on his head to make him suffocate.

[Flashman]

It is rumored that Draper is going to bid for the coins being sold in this auction as well. Also IIRC bitcoin was trading around $650 when the USMS announced that one person won the all of the coins in the auction and bitcoin is now trading at around $380 so he lost closer to 40% then 2/3 of his money. It is also not known how much of a discount he got from his winning bid.

He ain't lost anything if he hasn't sold. What I heard is that he actually paid a bit over market for them. Considering that he could have paid a lot over market with even splitting it to 500btc orders, I think it was a theoretical win.

[Febo]

What noobs are they.
I am sure in few years time someone will get found guilty of bad managing of public founds.

[Flashman]

What noobs are they.
I am sure in few years time someone will get found guilty of bad managing of public founds.

I don't think they can be, if it's auctioned. IF they said $500 BTC each for them, first come first served.... then even though market was ~400, then they might be accused of it, when it's 1000+ a couple of years down the road. But auction avoids that methinks.

[jyakulis]

bah....noobs...they shoulda went long on those.

[Flashman]

Though FUD if they hodl, FUD if they sell, ain't nobody gonna be happy.

[NEM minnow]

I doubt one person will buy them all for market price again.  The last guy got burnt and has like 1/3 of his money. 

That said, these auctions are actually good for the ecosystem I think.  It gives some big players a change to dip into the Bitcoin coin system.  There are some super rich people that can't be bothered with buying a few Bitcoins at a time.  This is an easy way for them to pick up 10 million worth of Bitcoin at once and not stress about it. 

It is rumored that Draper is going to bid for the coins being sold in this auction as well. Also IIRC bitcoin was trading around $650 when the USMS announced that one person won the all of the coins in the auction and bitcoin is now trading at around $380 so he lost closer to 40% then 2/3 of his money. It is also not known how much of a discount he got from his winning bid.

I don't think he will bid on all of the lots this time around as the price has generally been falling recently and he could have instead have been buying on an exchange during the recent "slow motion" crash

I meant to say lost like 1/3 of his money.  My brain must have been foggy.  You are right on the numbers. 

I also didn't know that Draper might have got different prices on different lots. 

If he does go at this lot again, that will definitely make a lot of people take notice.

[minerpumpkin]

Well, Draper could just go ahead and severely lower the median price he paid for his Bitcoins If you really believe in Bitcoin and want to acquire a huge amount in a safe and legal way, this is the perfect opportunity. I'd be surprised if they sell below (marketValue - ~5% or so)

[Eisenhower34]

I doubt one person will buy them all for market price again.  The last guy got burnt and has like 1/3 of his money. 

That said, these auctions are actually good for the ecosystem I think.  It gives some big players a change to dip into the Bitcoin coin system.  There are some super rich people that can't be bothered with buying a few Bitcoins at a time.  This is an easy way for them to pick up 10 million worth of Bitcoin at once and not stress about it. 

It is rumored that Draper is going to bid for the coins being sold in this auction as well. Also IIRC bitcoin was trading around $650 when the USMS announced that one person won the all of the coins in the auction and bitcoin is now trading at around $380 so he lost closer to 40% then 2/3 of his money. It is also not known how much of a discount he got from his winning bid.

I don't think he will bid on all of the lots this time around as the price has generally been falling recently and he could have instead have been buying on an exchange during the recent "slow motion" crash

I meant to say lost like 1/3 of his money.  My brain must have been foggy.  You are right on the numbers. 

I also didn't know that Draper might have got different prices on different lots. 

If he does go at this lot again, that will definitely make a lot of people take notice.

Well he said that he intends to create some kind of company that will make bitcoin accessible to people in third world countries where bitcoin has traditionally not been accessible. IMO this likely means that he will operate some kind of exchange (maybe like coinbase but for third world countries). I would think that he intends to sell the coins at some kind of markup (and/or have a largish spread between the buy and sell price) and does not want to have his cost basis be public so he can avoid any kind of public outcry over profiting from selling his coins to people in third world countries at a large profit.

I agree that people will certainly notice if he does win any of the coins in this auction and it would probably start a number of rumors. 

[pitham1]

Draper might try to average out his holdings, after buying high last time. 

[LiteCoinGuy]

I doubt one person will buy them all for market price again.  The last guy got burnt and has like 1/3 of his money. 

the last guy was Tim Draper and he understands bitcoin and doesnt care about a price of 500 USD or 1000 USD because he understands the true potential. you do not 

[scarsbergholden]

Well, Draper could just go ahead and severely lower the median price he paid for his Bitcoins If you really believe in Bitcoin and want to acquire a huge amount in a safe and legal way, this is the perfect opportunity. I'd be surprised if they sell below (marketValue - ~5% or so)

Do you have any actual information as to what the bitcoin sold at from the last auction? (or is this just pure speculation)?

I would say that sales of large blocks when the sale must be done in large blocks would generally result in lower prices because smaller buyers cannot buy small chunks of the block which would help prop up the price