Us government auction bitcoin exchange rates
Welcome to part three of the four part series asking Bitcoin experts to share their views on what the future holds for Bitcoin.
We look into the following:. The coins will end up distributed more evenly, which can only be a good thing, as a small number of people control a significant proportion of the Bitcoins in existence. In the short term, it could be quite fun. At current market depths, if 30kBTC was suddenly dumped on the exchanges, there would be a massive price crash. Unless it turns out nobody wants to own coins traceable in the blockchain back to the FBI….
It really depends on who acquires the bitcoin from the authorities. By that I mean whether that sell it off in huge chunks, in smaller segments, or hold it. Will be interesting to see how much they go for. Of course, There is nothing saying they cant just undercut the market and sell them off in smaller amounts. I could see some of the CyberCrime guys perhaps attempting to trace and follow their usage throughout the blockchain.
My best guess is that those reserves will be sold off at an auction off the regular exchange markets.
Hence the direct impact I expect to be limited. For the ecosystem as such it is a government body selling off an asset that has no legal status, if anything that is a positive signal as it would never happen with a truly illicit good like drugs.
Vitalik Buterin, Founder of Bitcoin Magazine responds: The FBI is not going to dump all of their coins on an exchange. They are going to us government auction bitcoin exchange rates them using the same standard process that they use us government auction bitcoin exchange rates sell everything else. Also, it is important to point out that the FBI is only free to liquidate of their coins; the remainder will likely stay locked up for a long time.
The ruling that allowed liquidation related specifically to the seizure of the Silk Road assets estimated to be around 30, BTC there is an additionalBTC in limbo awaiting a civil action. The FBI will likely dump all seized us government auction bitcoin exchange rates at auction prices as no U. This will temporarily increase supply, thus, reducing prices in the short term. If the FBI dumps it all at once for a penny per coin, the market will dip for a bit.
But now there are more coins in the hands of new users than ever before. Nubis Bruno, Co-Founder of Conectabitcoin responds: They could potentially start a FUD campaign and claim Bitcoin is not safe and that their money was stolen, but it may backfire making them look incompetent.
Simon Edhouse, Managing Director of Bittunes responds: In the most basic sense, this only tends to validate Bitcoin as a fungible and real currency. It also begs the question of what should be done with funds that us government auction bitcoin exchange rates apparently the result of illicit activities. Perhaps they can be donated to a worthy charity? To see the FBI having decided on the sales of Bitcoins is definitely a positive sign that the federal state sees Bitcoins as a valuable asset.
Certainly an open market proposal of BTC can create a turmoil in the market but I believe that even a steep fall would recover within few weeks. This will depend greatly on how the FBI decide to liquidate their bitcoin, what rate they decide to sell at, who they sell us government auction bitcoin exchange rates and how they sell it.
Because it is such a high volume, there are likely to be strong effects on the overall bitcoin price. I think if they did though it would be an opportunity missed for the US government at the beginning of a new era of finance. Aaron Williams, Founder of Atlanta Bitcoin responds: It will be interesting to see how this plays out.
If the FBI are to release all theses Bitcoins at the same time it will send shockwaves through the Bitcoin market, and lead to a frenzy. The FBI should release the Bitcoins in small batches to avoid any negative effects of such a massive liquidation. We will certainly see some fluctuations, but the market will us government auction bitcoin exchange rates. Once the liquidation completes, this specific question mark will be resolved.
Max, Co-Founder of Bitcoin Manchester responds: It will be sold off market in batches. A large investment firm will probably take a large number of them at slightly below market rate. We already seen firms like Exante buying off market to supply their fund I think they hold around 70k BTC. It shows that FBI does not have any doubts about legitamance of Bitcoin, as other ways these assets would us government auction bitcoin exchange rates destroyed or put on hold.
Secondly, there should be no significant effect on bitcoin price as this us government auction bitcoin exchange rates should be treated as increase in supply as supply is increasing from miniging activities and should be already reflected into us government auction bitcoin exchange rates price.
However, this sale of assets will most likely will be done in small chunks between random periods of time to maximize gain for US Marshals, similar in a way when financials assets are sold. Esther Tung, member of The Bitcoin Co-op responds: If they want to keep hanging onto it, then my bitcoins are worth more, all the better.
If they flood the market with it, then someone gets to buy bitcoins really cheaply, all the us government auction bitcoin exchange rates. Antony, Business Development at itBit responds: I think there are a few effects that could be seen. Firstly the price action will depend on how they liquidate. If value is the priority, they might want to trickle it into the market to minimize the impact on price; on the other hand, a large, fast firesale could cause a temporary negative dislocation.
In the medium term when news is out that the assets have been liquidated, this should be positive as buyers who have been waiting on the sidelines can join the market again.
If they are starting to liquidate their bitcoins, this could be a drag on the price for the short to mid-term. Depends on how much they are trying to liquidate and at what pace. But nevertheless, it increases the supply of bitcoins on the market to offset what has been more dominated by demand historically.
The big question is wether the FBI will use an exchange or just auction off the Bitcoins independently. Most likely the Bitcoins will be auctioned off slowly over a long period of time, which would, in theory, bring the price of Bitcoin down.
This choice not to upset the Bitcoin economy would, however, be seen as the FBI taking a positive stance on us government auction bitcoin exchange rates virtual currency. This would in turn lead to positive demand mitigating the effect of the sale. I think people are getting extremely educated on what Bitcoin can offer the world. With that being said, any liquidation would quickly be corrected by the market of buyers. Mark Norton from Bitcoin Warrior responds: If this happens, it will be a good buying opportunity.
It will also be a media frenzy, which will be good for the economy since it will introduce even more people to what Bitcoin is. It will also be damn entertaining to us government auction bitcoin exchange rates. Even if they were to try to sell on an exchange, the price crash would be a huge buying opportunity which would immediately bring the price back up, and, again, cause a media frenzy. Either way, I see this as helping Bitcoin grow.
John Delono, Founder of Bitcoin Reviewer responds: The FBI is one of the largest holders of Bitcoin, and I believe that it is us government auction bitcoin exchange rates their best interest to encourage the growth of the Bitcoin economy, allowing it to maintain its value. When their stockpile is auctioned off, it is likely going to introduce Bitcoin to people who have never heard of it before. A curated list of the most interesting stories in tech Actionable guides that can help your business grow Exclusive discounts on new tools and products Leave this field empty if you're human: We look into the following: The impact on the Bitcoin economy will be light and drawn out over time.
I believe that the FBI liquidation news will have a downward pressure on Bitcoin exchange rates. The impact on the market price depends on the quantities and the us government auction bitcoin exchange rates of the sales.
Like any marketplace, the value of is driven in large part by supply and demand. Additional liquidity which has been locked up so far, is also positive for the market. Leave this field empty if you're human: A curated list of the most interesting stories in tech Actionable guides that can help your business grow Exclusive discounts on new tools and products Subscribe:
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