What Happens To Government Owned Bitcoins?

in bitcoin •  7 years ago 

What happens when the Government takes over large wallets full of Bitcoins? When BTC is seized usually they lit it sit for a little while before putting up auctions. In order to get approved to participate in such an auction you obviously have to have a clear record, probably indicate what you will do with the bitcoins and deposit a fee to join. Buying bitcoin bulk is usually a tricky business so suddenly having 30K or 100K+ bitcoins up for grabs can definitely get a few whales interested..


Links
BusinessInsider - http://businessinsider.com.pl/international/people-are-making-a-fortune-buying-government-seized-bitcoins/7rthxkk?utm_source=businessinsider.com&utm_medium=referral&utm_campaign=redirect_businessinsider_com
CoinDesk - http://www.coindesk.com/us-marshals-final-silk-road-bitcoin-auction/
http://www.coindesk.com/bitcoin-price-rises-silk-road-auction-spurs-investor-interest/


AVILSDSteem.png

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Now with Hansa's $3m+ bust and Alphabay's 8M dollar seizure, we'll be seeing some auctions most likely in the near future for the millionaires

Great Info! @avilsd GANGSTER GOVERNMENT! JU GOT to move the YAYO!

Yeyo, hey ho.. SCARFACE

What if a Bitcoin owner dies?

They just form part of the market. Just like when they accumulate a large stake in blue chip stocks.

What's your stake on bitcoin at the moment. Seem like things are really cool, as the users are buying more bitcoin because segwit seem to be taking the lead.The indication that fork is not going to take place on first august is still not totally clear. What do you think?

And no matter how much the coins have gone up in value since they stole them, they still want to sell them for fiat dollars.

They're not sending their brightest...

This is a quality take.

Calling Once…Calling Twice… Bitcoins Sold for $1

now they want they own

I heard somewhere that the Chinese government considered a proposal to buy 1 bitcoin to give to little villages, with the expectation of bitcoin rising over the next few years into hundreds of thousands of dollars. At that point, they'd use the bitcoin as collateral for loans etc, encouraging the whole town to thrive. I realize it sounds crazy, I think it was just a proposal but it's fascinating how many benefits there are to bitcoin over fiat.

upvoted your on point bud

Basically, with the fuss the fork has created, they might just sell some of it for dollars or still hold on to it since the Aug. 1 is still in doubt.

Great one !

:)

Sequence 01_1.gif

Cheers

As one that is brand new to crypto this seems crazy to me. How do I keep my wallet from being seized by the government? Is it a thing where you convert bitcoin to cash and not let your wallet grow too big so it does not attract eyes on it you don't want?

Every article I read about steem and crypto uncovers new questions for me. I love learning new things. It's like jumping into a deeply detailed science fiction universe but for those that understand what's going on then they are the ones the end up winning and receive the profits.

(Y)

sin duda el gobierno tambien quiere sacar provecho y lucrarse!!

Sorry mate what's that translate to?

Without a doubt the gov wants to profit

I had read (Bix Weir, roadtoroota.com) that the Silk Road seizure was used to
MANIP-MANOP the crypto markets. Of course, they could sell really low and have a buy order set to retrieve said cryptos and re-use it again and again. They have plenty of folks being paid to monitor markets and buy/sell orders, and run it thru an exchange that would guarantee they get the coin at the prices they want. If such a vulnerability does exist. Maybe the forks have eliminated these possibilities... ?
Just my theory, please enlighten me!

I will admit I do not know much about cryptos but from what I understand: If the majority of miners agree to a bitcoin update the update can happen. If the majority of bitcoin owners are bitcoin miners, does that mean that the government can "own" bitcoin if they accumulate enough then mine transactions?

Technically yes, the government can take over BTC if they really wanted to but I doubt they will

Checkout my new article " The Only Way Anarcho Capitalism Could Work" @emperortefera.

so how do we get in on this? lol Is there a way to buy from the government? or is this kinda an inside deal where they'll sell them to a group or company?

Although, didn't the Norwegian government recently accept fine payments in Bitcoin from some ne'er-do-well it had locked up..? Guess that's the flip-side, there's a good chance governments will start holding Bitcoin and other crypto as assets given the current climate - and the chance of another fiat crash given debt levels in certain countries...

I trust Norway with their clean prisons and ACTUAL rehabilitation systems.. unlike some other countries :P

Agreed. Perhaps funded by Bitcoin..? ;)

Point is though, that if governments get involved in holding Bitcoin, the effect is a twofold win - it reduces the control of central banks over national and international politics by putting some of the money supply beyond their ken, and secondly, it reduces the amount of Bitcoin available on the exchanges, which pushes up the price, so we all win too... :D

Lolol bitcoin its the génération for money web bitcoin Takeover

Great info
Thanks , i upvote

Fun fact: after the Silk Road was shut down, the FBI was the "owner" of the largest quantity of Bitcoin. Might still be the case because I haven't read anywhere that they've auctioned them off.

This perspective can be tricky. No one can give Best answer to that, but for sure gouverment dont want to loose control.
Maybe there should be special technology to make New rules in gouverment?

Just like an apple rolling down a hill, bitcoin seems to have a mind of its own. Where will it go next?

Yeyo, hey ho.. SCARFACE

Interesting and impressive! $245.3 million profits from the government auctions;

Great info
Thanks