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For the curious, this 114k seizure represents a full 1% of all bitcoins that currently exist worldwide (0.7% of all bitcoins that will ever be produced). I'd w

For the curious, this 114k seizure represents a full 1% of all bitcoins that currently exist worldwide (0.7% of all bitcoins that will ever be produced). I'd wager the US government won't be releasing them or selling them back into circulation.

loceng 13y ago
Might there not be a required process of selling seized assets?
- JohnTHaller 13y ago
  As bitcoin is likely only quasi-legal in the eyes of the government, I doubt they'd be selling it off before they take a stance on it one way or another.
  - AaronM 13y ago
    If they did sell them off, would give the currency some legitimacy as being legal?
    - loceng 13y ago
      Probable, though not any more so than just anyone using it. A judge - appointed by whomever with whatever set agenda - could easily just say that those Bitcoins sold was illegal if it came to that.
  - lojack 13y ago
    I haven't seen any evidence to suggest any quasi-legality of bitcoins themselves. The legality of bitcoin exchanges and bitcoins' use as a currency, however, could be up for debate. Its reasonable that they'd just treat them as an asset and auction them off without needing to take a stance on any legal issues.
  - gojomo 13y ago
    One of the government's complaints against Ulbricht states: "Bitcoins are not illegal in and of themselves and have known legitimate uses." (See 21(b)(v) of http://www1.icsi.berkeley.edu/~nweaver/UlbrichtCriminalComplaint.pdf‎ http://www1.icsi.berkeley.edu/~nweaver/UlbrichtCriminalCompl...) Of course that's not a binding declaration, but it indicates some openness on the mattter. The agency holding it would surely like the $millions (or someday appreciated $billions) in law-enforcement toys it could buy, if liquidated. They routinely sell/spend other confiscations.
swamp40 13y ago
So 99 more arrests like this, hold onto everything, and the currency is dead?
- maxerickson 13y ago
  As it stands. But the rules come from the network quorum, in some crazy version of reality, the network could conspire to take these coins away from the FBI and use them as mining rewards or whatever.
letney 13y ago
Your 0.7% figure is slightly off. The total number of Bitcoins to be mined is 21 million, putting the percentage at slightly more than 0.54% (114000/21000000).
- deleted 13y ago
  [deleted]
- JohnTHaller 13y ago
  Correct! Not sure what I keyed in earlier.
- JohnTHaller 13y ago
  I posted 114k in my post here, but it was 144k in the article. That was it :) So it is 0.7%.

loceng 13y ago

Might there not be a required process of selling seized assets?

JohnTHaller 13y ago
As bitcoin is likely only quasi-legal in the eyes of the government, I doubt they'd be selling it off before they take a stance on it one way or another.
- AaronM 13y ago
  If they did sell them off, would give the currency some legitimacy as being legal?
  - loceng 13y ago
    Probable, though not any more so than just anyone using it. A judge - appointed by whomever with whatever set agenda - could easily just say that those Bitcoins sold was illegal if it came to that.
- lojack 13y ago
  I haven't seen any evidence to suggest any quasi-legality of bitcoins themselves. The legality of bitcoin exchanges and bitcoins' use as a currency, however, could be up for debate. Its reasonable that they'd just treat them as an asset and auction them off without needing to take a stance on any legal issues.
- gojomo 13y ago
  One of the government's complaints against Ulbricht states: "Bitcoins are not illegal in and of themselves and have known legitimate uses." (See 21(b)(v) of http://www1.icsi.berkeley.edu/~nweaver/UlbrichtCriminalComplaint.pdf‎ http://www1.icsi.berkeley.edu/~nweaver/UlbrichtCriminalCompl...) Of course that's not a binding declaration, but it indicates some openness on the mattter. The agency holding it would surely like the $millions (or someday appreciated $billions) in law-enforcement toys it could buy, if liquidated. They routinely sell/spend other confiscations.

swamp40 13y ago

So 99 more arrests like this, hold onto everything, and the currency is dead?

maxerickson 13y ago
As it stands. But the rules come from the network quorum, in some crazy version of reality, the network could conspire to take these coins away from the FBI and use them as mining rewards or whatever.

letney 13y ago

Your 0.7% figure is slightly off. The total number of Bitcoins to be mined is 21 million, putting the percentage at slightly more than 0.54% (114000/21000000).

deleted 13y ago
[deleted]
JohnTHaller 13y ago
Correct! Not sure what I keyed in earlier.
JohnTHaller 13y ago
I posted 114k in my post here, but it was 144k in the article. That was it :) So it is 0.7%.