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US Government Cashes In On Bitcoin Hype

                
                                  
US Government Cashes In On Bitcoin Hype
                 

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US Government Cashes In On Bitcoin Hype

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The US Marshals Service declared on Thursday that it will hold an auction in February to dispose of 3,813 bitcoins, worth a cool $52 million at today’s price. The coins were seized in “different federal criminal, civil, & administrative cases”.

Selling off Bitcoin is a routine process for the US Marshals Service, but the recent boom in cryptocurrency has meant that the enforcement arm of the judicial system is now essentially gambling in crypto-currency.

Given the massive price swings that Bitcoin has experienced in the last three months, the precise timing of an auction could have huge implications for how much money the courts receive. But for investors, the simplistic nature of the auction & the large number of coins involved present a one-off opportunity to make a tremendous profit.

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Prospective investors have until January 19th to register, & wannabe investors will have to put down a $200,000 deposit before the auction to prove that they’re serious. The coins are being auctioned off in blocks, rather than individually, which is what makes this particular auction interesting.

The smallest block is 500 coins, worth around $1.4 million. Large volumes of Bitcoin are not traded as frequently as you’d believe, as most transactions involve a fraction of one coin. Investors may well be able to buy a block for below current market value, & then arbitrage it off in smaller pieces to turn a quick profit.

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The auction is not open & all bids are secret, meaning bidders aren’t going up against each other in a room. Winners will be informed of their successful bid on January 22nd

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