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Bitcoin

Winners of First Seized Silk Road Bitcoin Auction Remain Anonymous 88

Posted by Unknown Lamer
from the wait-until-they're-blacklisted dept.
ASDFnz (472824) writes with news that the first block of bitcoins seized from the Silk Road have been auctioned off, and for a pretty high price. The winners are unknown, and Bitcoin has bumped from trading at ~$600 to $650 (USD). From the article: ...In the absence of information speculation both on the markets and on the Internet is building. First Barry Silbert, Founder of SecondMarket and BitcoinTrust has tweeted that they were outbid on all blocks. Since then Alex Walters (a former core Bitcoin developer and the then chief technology officer of Bitinstant) has posted on reddit saying 'I Lost' in his $400 to $500 per coin. That post was closely followed by another reddit user saying that his bid of $451.13 per coin was also unsuccessful. ... Meanwhile the actual price of bitcoins of the various exchanges has risen close to 15% from just under $600 a coin to close to $650. In the end, we may never know who bought the confiscated coins or how much they bought them for but it does seem that it will be a pivotal point in Bitcoin's evolution.
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Winners of First Seized Silk Road Bitcoin Auction Remain Anonymous

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  • by Anonymous Coward on Tuesday July 01, 2014 @07:07AM (#47358807)

    Newegg.com now accepts bitcoins, which I suspect is at least as important for the rising prices in the last few days.

  • by FireFury03 (653718) <`slashdot' `at' `nexusuk.org'> on Tuesday July 01, 2014 @07:44AM (#47359001) Homepage

    How do they choose the exchange? Government property must be auctioned off to the highest bidder, otherwise they are favoring a business over others.

    One of those little things that they do to maintain the appearance that they are not corrupt.

    I'm curious how they handle foreign currency which is seized - if they seize a truck full of euros, do they auction them or of just exchange them for dollars? If the latter, what's the difference between that and doing the same with bitcoins?

  • Re:Value (Score:4, Interesting)

    by codebonobo (2762819) on Tuesday July 01, 2014 @07:52AM (#47359055)

    If bitcoin was trading at something like $600 beforehand, why would anyone bidding $450 be surprised that they lost out? If these bitcoin boosters are so firm in their belief that bitcoin is as fungible as any other currency, shouldn't they have bid at something like the going rate?

    This was a test in the fungibility of Bitcoin. Some investors underbid in hopes that the hurdle of a minimum of 200,000usd deposit would lower competition and the demand would not be so fierce to be able to purchase 30,000 extra bitcoins in a single day.

    What this auctioned has shown is that the market can easily take large amounts of bitcoin being liquidated and demand s so high that over 20 million dollars in investor money was brushed aside where they will have to turn to exchanges to satisfy their investments.

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