So if 30k bitcoins from the current FBI auction of silk road coins has contributed to the bitcoin price crashing hard - if the FBI win their case and get to sell Ross Ulbricht's 140k bitcoin stash will the bitcoin price literally crash?
Thoughts people?
Anyone have any updates about Ross Ulbricht's case?
What are his prospects of success?
If his chances of success are slim then smart bitcoin traders should be aware that the market could potentially flash crash at any moment depending on the outcome/announcement by law enforcement. We now have a precedent that American law enforcement are eager to sell seized bitcoins and rake in the cash.
Blah blah blah blah blah blah blah blah.
Oh, sorry, are we having a serious discussion?
Sorry to mention the elephant in the room. Or have I broken the cult rule of the hodlers?
That's right. Everyone here is a cult member. Branded and the works.
We are blind to the reality that 140k bitcoins are going to be bought for a price and then dumped the market down to single digits. Here is how your theory works.
IE. Current spot price is $550. Government auctions off 140k bitcoins. They sell for 15% below spot (why? because there was an article IN FEBRUARY on the internet about a company willing to buy them for 15% below spot, so they must be sold for that). So that company gets 140k for around $467 a piece.
Then they sell those 140k bitcoins on the market. But since the market only has about 10k bitcoins in depth down to $467, they dump 10k bitcoins for a 1%-15% profit and then dump the other 130k bitcoins for a loss.
So they lose millions of dollars and the price of bitcoin is now <$5.
YES, THIS IS A BRILLIANT CONCLUSION.
Because I responded with BLAH BLAH BLAH I MUST be a CULTIST!
Why, god are people on this forum so stupid?