Australia to Auction Off 24,500 Seized Bitcoins

An Australian firm, Ernst Young is set to auction off 24,500 BTC equaling around £8M. The sum is set to be auctioned off in blocks of 2,000 as to not effect market value.

An Australian newspaper has previously reported that 24,500 bitcoins were taken by police after they busted a man in 2013 for selling drugs online. In 2015 the Victoria Asset Confiscation Operations Department said that they had taken 24,500 bitcoins and were going to try to make the best of the situation.

“This is a significant amount of bitcoin. It’s about a weeks’ worth of bitcoin that comes onto the market from mining,” said Dr. Garrick Hileman, an economic historian at the Cambridge Center for Alternative Finance.

It’s estimated that around 4,000 new bitcoins are generated every day from mining. They decided to sell them in blocks of 2,000 because selling a large amount on an exchange for cash would have a negative effect on the market.

“Generally the view is that anytime 10,000 bitcoins sell; the market price can be moved significantly. The Australian authorities have chosen a safe time to sell becomes there is some uncertainty about what will happen to the value of bitcoin in July.

Read more ... source: TheBitcoinNews