A full of v people bid on $1.6 i M 1000 inwards bitcoin the regime auctioned on Monday, according to Inverse, which begs the question: why did then few seek to bid on the in conclusion block of bitcoins the regime was auctioning from the Silk Road bust of 144,000 bitcoins? The U.S. Marshals Service (USMS) auctioned the block of 2,700 bitcoins on Monday. In vi hours, somebody placed the winning bid. Monday’s auction followed 44,000 bitcoins (estimated at $14.6 million) sold to iv winners out of a puddle of xi bidders for Silk Road related assets.
Anonymous Winner
USMS confirmed that an anonymous bidder bought the 2,700 bitcoins, according toGizmodo. Winners of such auctions solely bring to brand themselves world if they choose. For example, itBit, a New York-based exchange, confirmed it purchased i of the auction blocks inwards Nov when USMS sold other Silk Road assets. So why were at that spot then few bidders?
Possible Explanations
The recent USMS alert close Chinese hackers targeting bitcoin would non explicate the lack of involvement inwards the auction since that alert came long afterwards the USMS began asset the auctions inwards mid-2014.
One possible argue is that Tim Draper outbid 44 bidders inwards the start auction, purchasing all 30,000 bitcoins. Draper’s bidding could bring discouraged potential time to come bidders who didn’t mean value they could fit the Draper family. Another argue would move that at that spot was a $100,000 deposit required for entering the auction. Applicants registering for the auction had to submit a Government-issued photograph ID alongside other conditions, CCN reported. The puddle of cryptocurrency enthusiasts who tin sack deposit this amount only for the possibility of buying bitcoins isn’t big. This, coupled with a suspicion close well-heeled investors, would dampen bidder interest.
A Reflection On Bitcoin?
Still unopen to other explanation is that bitcoin may non strike potential bidders every bit a skilful investment. Earlier this year, the bitcoin cost was riding high with a $750 conversion rate, compared to the $580 at this report.
The high barrier to entry, coupled with the tumultuous marketplace position together with a certainly amount of trepidation close buying bitcoin from the feds could bring all contributed to the auction’s weak turnout.
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