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

[thejaytiesto]

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!

It's very true, what we don't know if when and if the whales buying in the auction will dump, or hold.

[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.

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.

Dumb fck you would then deal with multiple small exchanges = multiple times the risk and you have to trust them keeping your info safe. Not to mention you have to deal with multiple wirings.

All the trusthworthy exchanges combine dont have 50k btc let alone keeping the price at 30% above market price.

When Bitstamp was hacked it had about 20k bitcoins in its hot wallet and far more than that in its cold wallet.

Bitstamp proved it had 194,933 BTC when it had an audit.

http://www.coindesk.com/bitstamp-audit-proves-behind-147m-mystery-bitcoin-wallet/

The sell orders on the books are a tiny fraction of the coins held by the exchange and sellers often dump directly into buy orders.

[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.

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.

Far too risky. 1k at a time from various exchanges is still going to be 50 transactions spread across multiple exchanges. Again back to the 50k quantity bitcoin, if someone did have the capacity to buy it all at once, what would you need to say to this person to convince them that A; their details are safe with you, B; their dollars are safe with you and C; they are guaranteed to receive their 50k btc. This 30% figure being thrown around could be a security the client is willing to pay to ensure a 100% safe, true, legitimate sale of the bitcoin.

Someone else said "its an auction, its meant to sell under". Not true. I've been to private auctions, things like computers, furniture, TV etc sell cheap. Things like gold, jewelry and other items which are of true high value will generally sell quite close to their value. Some jewelry I've seen has been oversold in value simply because of what it is.

[Q7]

If the reason for paying such a high premium was because you can't get that high number of coin in the market right now, then I won't agree with it. Number one, you could spread the buying to different exchangers. You could also buy smaller amount, which cause the price to go up a little, and then wait for it to drop and then buy again when there's free btc stock. Or another way, buy different altcoins with usd for example like doge and then convert it to btc. But in no way, I'm going to pay for extra 30% just because of that reason.

[SargeR33]

50K bitcoin is around 13 million at todays conversion rate. Seems a lot of money to me. Where does the entire 39 million go after the acution ?

I don't know the background of this situation with these coins but if there are people involved and their coins stolen, they will all be repaid. The rest of the money goes to the state or remains seized.

[Berau]

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

Wow really?

Was that from the seized coins of dread pirate roberts?

[cheekychap]

50K bitcoin is around 13 million at todays conversion rate. Seems a lot of money to me. Where does the entire 39 million go after the acution ?

I don't know the background of this situation with these coins but if there are people involved and their coins stolen, they will all be repaid. The rest of the money goes to the state or remains seized.

I don't think anyone is repaid, as it was coins confiscated from the silk road. And those are coins which people have used to buy drugs , and other illegal stuff.
None of them will be asking the government for their coins to be given back to them.

[Berau]

50K bitcoin is around 13 million at todays conversion rate. Seems a lot of money to me. Where does the entire 39 million go after the acution ?

I don't know the background of this situation with these coins but if there are people involved and their coins stolen, they will all be repaid. The rest of the money goes to the state or remains seized.

I don't think anyone is repaid, as it was coins confiscated from the silk road. And those are coins which people have used to buy drugs , and other illegal stuff.
None of them will be asking the government for their coins to be given back to them.

Bitcoiners will probably ask them back.

So the silk road site is now on the invisible internet? Or something?

[SargeR33]

50K bitcoin is around 13 million at todays conversion rate. Seems a lot of money to me. Where does the entire 39 million go after the acution ?

I don't know the background of this situation with these coins but if there are people involved and their coins stolen, they will all be repaid. The rest of the money goes to the state or remains seized.

I don't think anyone is repaid, as it was coins confiscated from the silk road. And those are coins which people have used to buy drugs , and other illegal stuff.
None of them will be asking the government for their coins to be given back to them.

Ah fair enough. I thought it was a scam situation. If this is the case then the money will go to the crown/state or seized.

[innocent93]

I would doubt that, would you go into a auction and buy something with 30% higher prices than market?
 

[calci]

Ah fair enough. I thought it was a scam situation. If this is the case then the money will go to the crown/state or seized.

All the amount was seized. In total there was around 173K of bitcoin that was totally seized in the last one year.

[josef2000]

I still dont understand why it was auctioned instead of exchanged

[BootstrapCoinDev]

Much more fun to hope that someone buys and offloads steadily, driving the market to ruin in a couple days or weeks. A man can dream, right? Sending them to the eater would be far too kind to the eminently courteous butt-crowd.

[Kprawn]

A syndicate led by Barry Silbert’s SecondMarket won bids for 48,000 of the coins for the second auction and Tim Draper won a bid for only 2,000 of the bitcoins on auction. 

The current auction sold for close or even above market price  {That should tell us something} The future is bright, when people bid above the market price. 

Not a lot of people participated, so it's a good result.

 

[picolo]

Much more fun to hope that someone buys and offloads steadily, driving the market to ruin in a couple days or weeks. A man can dream, right? Sending them to the eater would be far too kind to the eminently courteous butt-crowd.

To resume the thread we are not sure.

The price is surely going up in the market so it could be true.

[Aboveyourass]

Much more fun to hope that someone buys and offloads steadily, driving the market to ruin in a couple days or weeks. A man can dream, right? Sending them to the eater would be far too kind to the eminently courteous butt-crowd.

To resume the thread we are not sure.

The price is surely going up in the market so it could be true.

pump and dump, it will end up sub $100

[finlon]

Much more fun to hope that someone buys and offloads steadily, driving the market to ruin in a couple days or weeks. A man can dream, right? Sending them to the eater would be far too kind to the eminently courteous butt-crowd.

To resume the thread we are not sure.

The price is surely going up in the market so it could be true.

pump and dump, it will end up sub $100

I doubt we will go sub 200 firstly. Sub 100 is too far off for now.
Why don't you post this from your original account ?

[Q7]

A syndicate led by Barry Silbert’s SecondMarket won bids for 48,000 of the coins for the second auction and Tim Draper won a bid for only 2,000 of the bitcoins on auction. 

The current auction sold for close or even above market price  {That should tell us something} The future is bright, when people bid above the market price. 

Not a lot of people participated, so it's a good result.

 

If it's true that the price paid for by the auction winner is higher than the market price, then it should be good news. I've been reading some conflicting reports about the actual price paid and that gets me worried as well whether it will cause the bitcoin price to drop in few days to come. Also can somebody also confirmed what is the actual price paid for? Is that really announced to the media or made official?

[picolo]

A syndicate led by Barry Silbert’s SecondMarket won bids for 48,000 of the coins for the second auction and Tim Draper won a bid for only 2,000 of the bitcoins on auction. 

The current auction sold for close or even above market price  {That should tell us something} The future is bright, when people bid above the market price. 

Not a lot of people participated, so it's a good result.

 

If it's true that the price paid for by the auction winner is higher than the market price, then it should be good news. I've been reading some conflicting reports about the actual price paid and that gets me worried as well whether it will cause the bitcoin price to drop in few days to come. Also can somebody also confirmed what is the actual price paid for? Is that really announced to the media or made official?

It is not official, just rumors.