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?
no one will buy all 140k at 15% off, since they know that the market cannot support such a large quantity and will surely crash for much more than just 15%... How about you reread your own argument backwards and realise that it may lead to a different conclusion.
One scenario may be:
1) market cannot support such large amount
2) buyers are aware of this and will not offer to pay 15% below market for 140k coins... they arent stupid after all. ...
Your whole argument is based on there being a definite buyer for 15% below market yet you agree that there is no market to support this quantity.
So either there is no buyer or the buyer is really stupid because 140k will crash the markets for much more than just 15% enabling them to purchase the coins for way cheaper.
If this is what you truly believe then you should leave this forum and never invest in bitcoin. There is literally no reason for you to be here. You aren't here to "save" anyone. So just save yourself.