Why Did Only Five People Bid on the Feds’ Bitcoin Stash?

Someone has purchased $1.6 million worth of bitcoin from the U.S. Marshals Service. That’s not a bad haul, and whoever purchased the bitcoins gets to hold on to some of the cryptocurrency seized from the illicit Silk Road marketplace. So why did only five people bother to place bids for the block of 2,700 bitcoins?

The USMS announced its intent to auction off the stash in a one-day event that ran for six hours on Monday. CoinDesk reported last night that someone did indeed place a winning bid on the stash.

The auction was the last related to the Silk Road bust that saw 144,000 bitcoins seized. Previously, the USMS sold 44,000 bitcoins to four winners; only 11 people are said to have bid on that $14.6 million block of bitcoins.

So why are people so hesitant to bid for these Bitcoin? It can’t be that they’re worried about a warning that Bitcoin’s underlying tech was being targeted by Chinese government hackers, as that warning was published long after the USMS started holding the auctions in mid-2014.

Perhaps it’s because venture capitalist Tim Draper bought all 30,000 bitcoins sold in the first auction by outbidding 44 other

Read more ... source: TheBitcoinNews

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