Is the rumor about the latest 50,000 BTC auction true?

[BitCoinNutJob]

That it was sold 30% (!!!) above market price?  Could someone find any news links or any person from say CoinDesk confirm this?

Wow really? i like the fact with have around 3 x the bidders vs last auction so i guess this rumor could be believable. 

[DeboraMeeks]

There seems to have a stab to either let everyone start panic buying.
Remember? Buy on rumors?

[BitCoinNutJob]

I noticed this guy https://twitter.com/CryptoKees/status/573577241235423232  is followed by eric voorhees thats got to be a good sign unless he just started following based off the rumor lol

[Kazimir]

No, of course not. If the current bidding price is 10% or 20% above the market, why the hell would a sane person bid even more, rather than just buying directly from the market?

[BitCoinNutJob]

No, of course not. If the current bidding price is 10% or 20% above the market, why the hell would a sane person bid even more, rather than just buying directly from the market?

Buying 50k from the market would send the price sky high and you have to deal with exchanges.

[Monetizer]

It will be interesting to find out if it's true or not. It would not surprise me however at the same time I think 30 percent is a bit excessive when you can just slowly buy over the space of a month and pay maybe a 10 percent premium at most.

[thompete]

No, of course not. If the current bidding price is 10% or 20% above the market, why the hell would a sane person bid even more, rather than just buying directly from the market?

2 reasons, First you can't buy 50K straight from the market as the prices will increase by 10% even by buying 5K bitcoins.
And you will have to trust a large amount with a third party while doing so.

[bri912678]

I noticed this guy https://twitter.com/CryptoKees/status/573577241235423232  is followed by eric voorhees thats got to be a good sign unless he just started following based off the rumor lol

I noticed that guy was tweeting for free giveaways of plankton coins last summer. Anyone doing that is unlikely to be a big shot in the bitcoin world.

[Sheldor333]

Yeah it is true. It's nice news in my opinion, it shows that some people are convinced that there will be an increase in BTC price of more then 30%.

Here is more about the auction.

http://www.coindesk.com/third-usms-bitcoin-auction-bidder-interest/

[Monetizer]

I noticed this guy https://twitter.com/CryptoKees/status/573577241235423232  is followed by eric voorhees thats got to be a good sign unless he just started following based off the rumor lol

I noticed that guy was tweeting for free giveaways of plankton coins last summer. Anyone doing that is unlikely to be a big shot in the bitcoin world.

Yeah, I doubt it will turn out to be legit but it would be interesting if it where. I hope someone fairly high profile has bought them.

[Bralex]

No, of course not. If the current bidding price is 10% or 20% above the market, why the hell would a sane person bid even more, rather than just buying directly from the market?

2 reasons, First you can't buy 50K straight from the market as the prices will increase by 10% even by buying 5K bitcoins.
And you will have to trust a large amount with a third party while doing so.

This is not strictly true, 5k if you was to buy all at once maybe, but no real traders i know do that very often what would happen is multiple buy orders across multiple exchanges and people would dump into them within a couple of days no problem.

Now the same can be said for those selling from the buyers! I would argue if i was a buyer go and try sell 50k on exchanges and see what price you get   There is very little chance they paid over market more like under market value.

[calme]

I heard Vladimir Putin bought them but I dunno.

[gkv9]

Wow, why would someone actually pay 30% more while there are still some high orders available to be sold at lower prices (even if a pump takes place) which would not equate it to 30% above?

[SargeR33]

Wow, why would someone actually pay 30% more while there are still some high orders available to be sold at lower prices (even if a pump takes place) which would not equate it to 30% above?

How many exchanges are there that currently have 50k bitcoins for sale at a fixed price? If you bought 1k bitcoins from any exchange, it would be EXTREMELY unlikely that the orders on that exchange will still be in the same price range. I just checked Cryptsy, yes a small exchange, but there isn't even 20 bitcoins available for sale there and if all those sold, the price would be pumped to 300. Buying all those coins you're already seeing a increase is 22%. There is no way 50k bitcoins WILL sell and still keep each bitcoin under $338 a piece.

Do you also realise how many dollars you need to buy 50k bitcoins? $13.3 million USD @ $266 a piece.

[randy8777]

doesn't make sense at all. there is no need to pay a premium above market rate. that just doesn't sound right.
i would like to think the price is around or a bit under market value. it's an auctoin.

[bri912678]

Wow, why would someone actually pay 30% more while there are still some high orders available to be sold at lower prices (even if a pump takes place) which would not equate it to 30% above?

How many exchanges are there that currently have 50k bitcoins for sale at a fixed price? If you bought 1k bitcoins from any exchange, it would be EXTREMELY unlikely that the orders on that exchange will still be in the same price range. I just checked Cryptsy, yes a small exchange, but there isn't even 20 bitcoins available for sale there and if all those sold, the price would be pumped to 300. Buying all those coins you're already seeing a increase is 22%. There is no way 50k bitcoins WILL sell and still keep each bitcoin under $338 a piece.

Do you also realise how many dollars you need to buy 50k bitcoins? $13.3 million USD @ $266 a piece.

Bitstamp is now a low volume exchange and that had a 24h volume of 11039 BTC yesterday. The coins on sell orders are a small fraction of the coins o the exchange. People often directly sell into buy orders, and buy into sell orders. If you placed but orders across all major exchanges and spread them out over the course of a week then people would probably sell you 50k bitcoins without you pumping the price up anywhere near 30%. You would only pump the price up by buying directly into the sell orders in a short space of time.

[AtheistAKASaneBrain]

Wow, why would someone actually pay 30% more while there are still some high orders available to be sold at lower prices (even if a pump takes place) which would not equate it to 30% above?

To bypass interaction with exchanges. As a rich guy you dont want to risk all your fortune in shitty bitcoin exchanges that get hacked all the time.

[Q7]

I don't know how that could happen but I'm sure the buyers already set the target price or the maximum that they are willing to pay based on existing market price. Slightly overestimated by 5% might be possible, but 30%? I'm sure they have done their homework considering the large amount of money involved in the transaction.

[Hazir]

Wow, why would someone actually pay 30% more while there are still some high orders available to be sold at lower prices (even if a pump takes place) which would not equate it to 30% above?

How many exchanges are there that currently have 50k bitcoins for sale at a fixed price? If you bought 1k bitcoins from any exchange, it would be EXTREMELY unlikely that the orders on that exchange will still be in the same price range. I just checked Cryptsy, yes a small exchange, but there isn't even 20 bitcoins available for sale there and if all those sold, the price would be pumped to 300. Buying all those coins you're already seeing a increase is 22%. There is no way 50k bitcoins WILL sell and still keep each bitcoin under $338 a piece.

Do you also realise how many dollars you need to buy 50k bitcoins? $13.3 million USD @ $266 a piece.

So you are basically saying that the only reason one shall buy bitcoin from auctions like that is to buy large sum at once without manipulation bitcoin price? It may the case. But I find it easier to buy bitcoin from various exchanges in small packs say - less than 1k btc at once.

[allthingsluxury]

This is the more moving piece of rumor/news though:

https://twitter.com/btcchina/status/573574299455455234

No one moves Bitcoin quite like China does...

That's a misleading tweet, the linked article was just "opinion" of a guy who invested in BTC. There is no official things from government. I thought BTCchina misunderstood "lawyer" to "law maker".

Yea, it's an old linked article an all, but you know speculators look at anything to get insider scoop.

Any tweet from a half way legit source, and they take it as gospel without real confirmation.

You know the saying...BUY THE RUMOR!

Exactly, always dig into the facts. The truth is out there!