back to article Bitcoin to be hammered – in an auction, that is

Australia is getting ready to sell off a bunch of Bitcoin seized by police under proceeds of crime laws, in an international auction. Ernst & Young will put more than 24,000 Bitcoin under the hammer, so to speak, at a most-current valuation of around US$11.5 million (more than AU$16 million). The auction is slated for June 20 …

  1. Dan 55 Silver badge

    What's the point?

    Why don't they just change it for money themselves and get the current rate for it?

    1. Anonymous Coward
      Anonymous Coward

      Re: What's the point?

      Might it be to do with the fact most tax authorities have decided bitcoins are goods rather than a currency? Or simply that no exchange has closed to $11.5 million in reserve?

      1. Anonymous Coward
        Anonymous Coward

        Re: What's the point?

        >Or simply that no exchange has closed to $11.5 million in reserve?

        OKCoin could do it easily - if they're auctionned E&Y will make a 25/30% margin on the sale - it pays well to give bad advice.

    2. Ole Juul

      Re: What's the point?

      Somebody has to buy it. That's how you "change it for money". lol

      1. Dan 55 Silver badge
        Facepalm

        Re: What's the point?

        Yes. At a discount I would have thought. lol

        1. Adam 1

          Re: What's the point?

          > At a discount I would have thought

          Good idea. It might be hard to work out just how big a discount is needed though. Too little and they won't sell. Too much and they won't make as much as they could have. I have an idea. Perhaps they could just offer to sell it to whomever offers the highest amount?

          1. Dan 55 Silver badge

            Re: What's the point?

            I can't work out if you're being deliberately obtuse or not. If not, you will never get market exchange rates if you auction a currency off so don't auction it off, just change it.

            1. DiViDeD Silver badge

              Re: What's the point?

              Maybe, being Australian and firmly opposed to giving the little guy an even break, they're worried that exchanging BitCoin for fiat currency would 'legitimise' BitCoin in the eyes of the ordinary people who are being told 'stay away from that BitCoin - it's only used by criminals, paediatricians and terrywrists (and western governments)

    3. G 14

      Re: What's the point?

      Because bitcoin is an illiquid product and dumping 24000 complete units of an illiquid abstract-construct on a market is sure-fire catastrophe.

    4. Mark 85 Silver badge

      Re: What's the point?

      That would buy a lot of donuts (doughnuts) if the local shop accepted Bitcoin.

  2. Anonymous Coward
    Anonymous Coward

    Did you know that every single bitcoin has tiny traces of digital cocaine on it? Well you do now.

    1. Known Hero

      umm this is the internet, I don't think that white stuff is cocaine!!!

  3. Anonymous Coward
    Anonymous Coward

    Duh

    Do they auction off cash? No. Shows how stupid cops are. There isn't even any point in bidding since you wouldn't bid higher than market and the winner is the person who bid higher than any other but less than market rate.

    Therefore the winning bid will be :

    Market - 1 Satoshi

    Waste of everyone's time perhaps in an effort to avoid giving bitcoin legitacy.

    1. Raumkraut

      Re: Duh

      However, it would be a strong optimist who bids so close to market value.

      IIRC, bitcoin prices recently went up ~21% in a short time. That's a lot. Very easily, an auction "winner" can turn into a financial loser if the market price undergoes a correction.

    2. Anonymous Coward
      Anonymous Coward

      Re: Duh

      Where do you think "market prices" come from?

      Price discovery is driven by what people are willing to pay, and differs from valuation. Hence the sale.

      This is no different to selling off foreign currency, if a large amount was seized from the proceeds of crime.

    3. DavCrav Silver badge

      Re: Duh

      "Do they auction off cash? No. Shows how stupid cops are."

      No, they can use cash. Nobody in government can use Bitcoin to actually pay pensions, etc.

    4. easytoby

      Re: Duh

      The point being that this way E&Y get a nice fat commission

  4. Anonymous Coward
    Anonymous Coward

    E&Y

    I wouldn't trust them with chocolate coins.

  5. Oengus Silver badge

    I wonder if I can pay with bitcoins...

    1. Anonymous Coward
      Anonymous Coward

      Will they take Doge?

      1. Neoc

        "What did the Doge do?"

  6. This post has been deleted by its author

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