The most closely followed Bitcoin auction process has come to an end with the final list of winning bids and surprisingly only a single bidder will be taking a whole lot of 29,656 bitcoins home. While The U.S. Marshals Service did not reveal the name of the bidder’s identity, they said to have informed the bidder and assigned the bitcoins. The bidder is the winner among 45 high-profile bidders, which included big names like SecondMarket Inc.
Big Names Did Not Make It
The auction process held on June 27 was the first one for the bunch of 29,656 bitcoins out of a total of 144,000 pieces that were seized by the FBI during its raid on the Silk Road marketplace. As of now, the price of the winning bid is still not known, but it is estimated from the cache sold yesterday that the auction is worth $19 million at current exchange prices. Some of the big names like, Rangeley Capital, SecondMarket, Pantera Capital Management, CoinbaseInc, and Bitcoin Shop, confirmed that they had been outbid in the auction, which drew a total of 63 bids.
Supply Creates Demand
Pantera’s CEO, Dan Morehead said that the result of the auction process suggests that “supply creates its own demand.” He wrote that the buzz built up around the auction process has created several new players implying increased demand. Morehead stated that their company had submitted bid below the market price. At the same time, Bitcoin Shop Inc also confirmed that it lost the bid but said that it will keep assessing future opportunities like this in future.
The batch of bitcoins sold excluded those that were obtained from Silk Road owner, Ross William Ulbricht. The auction was believed to be an excellent platform for bidders to collect the virtual currency at a discounted price, however, one bidder has so far been successful to get that advantage. In the meanwhile, the U.S. Marshalshas said that they will put more bitcoins for auction in near future.
July 02, 2014 at 09:30AM
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