Bitcoin sell-off
Discussion
0000 said:
Doesn't any market do that?
Not really. In (most) free markets, competition will tend to reduce margins.Then you have the issue that by creating a market 'zone' for any contraband, the unintended consequence (see Al Capone) is that only criminals will enter it and they, by their definition, tend not to spend their earning on 'nice' stuff. They also have to launder earnings, which then creates other conflicts and secondary damage to unwitting, legal competitors.
CommanderJameson said:
It's one thing getting $80M worth of bitcoins; it's quite another to turn that into $80M of $.
Yeah, no doubt, but he could have got a fair chunk surely?He could also have made a legit bitcoin business and helped promote the currency with his large holdings?
We obviously don't know too much about it, but ordering the murders of people conjures up the image of a 20-something boffin trying to be the Don Corleone of the internet.
mu0n said:
Did the 'FriendlyChemist' get killed ?
The whole hired killer thing was daft. FriendlyChemist tells DPR that he want $500k to 'pay off his drugs suppliers', DPR tells FC to get his suppliers to contact him direct for negotiation. Random anonymous person contacts DPR claiming to be the supplier. DPR arranges with said random to have FC killed in exchange for bundle of cash. He apparently does and provides photo 'confirmation'. My guess is that the random was FC who got a bundle of cash and kept his mouth shut from that point forward. Canadian police said no murders at that time which fit the description.It's inconceivable to me that someone who was as obviously wanted as DPR was had such poor operational security. Even the FBI getting a server image wouldn't have lead to his capture if he was actually careful. He didn't even use encryption when arranging his 'assassination'. Using his own f
king name to do viral marketing for Silk Road? Insane.mu0n said:
Yeah, no doubt, but he could have got a fair chunk surely?
He could also have made a legit bitcoin business and helped promote the currency with his large holdings?
We obviously don't know too much about it, but ordering the murders of people conjures up the image of a 20-something boffin trying to be the Don Corleone of the internet.
If he was holding $80 million in bitcoins then he was in possession of roughly 6% of all bitcoins in circulation. 'Cashing out' a significant fraction of that wouldn't be trivial. I wonder if he had a long term plan?He could also have made a legit bitcoin business and helped promote the currency with his large holdings?
We obviously don't know too much about it, but ordering the murders of people conjures up the image of a 20-something boffin trying to be the Don Corleone of the internet.
hornet said:
CommanderJameson said:
It's one thing getting $80M worth of bitcoins; it's quite another to turn that into $80M of $.
As much as I like the idea of Bitcoin (and similar), you do have to wonder whether its major selling point (anonymity) will be the self same thing that destroys it? Unless it becomes much easier to convert them to regular currencies, the only way to spend them is going to be on the Silk Roads of this world, which will just perpetuate the cycle of dodgy dealings. If you can only really use them to buy illegal goods and services (the illegality of which is a different debate), then obviously only people who move in those circles are going to use them. How can Bitcoin break out of that loop I wonder?Question. From some comments it seems people imagine it to be very hard to change bit coin for money. I thought there was a flourishing market in just selling them? Am I wrong on that, or is it just harder than it looks. Obviously offloading 80m dollars worth is going to have its own effects on value.
Also. I've read that people are surprised the FBI can confiscate bitcoin, but surely it's the same as confiscating any currency. They will take the proceeds of crime if they can prove that's where it came from. But could they take them further down the line? For instance, if I bought some bitcoins that had been used in a criminal way previously, could they be tracked through the serial numbers and taken from myself?
Also. I've read that people are surprised the FBI can confiscate bitcoin, but surely it's the same as confiscating any currency. They will take the proceeds of crime if they can prove that's where it came from. But could they take them further down the line? For instance, if I bought some bitcoins that had been used in a criminal way previously, could they be tracked through the serial numbers and taken from myself?
jogon said:
Bitcoin trading is still dominated by the peer to peer based systems but large amounts are still traded via these means.
Silk road used a tumbler system for bitcoins entering and leaving the site, rather clever, so it is very difficult to trace.
Ahh right, interesting. And is that system used across the board or just silk road.Silk road used a tumbler system for bitcoins entering and leaving the site, rather clever, so it is very difficult to trace.
rufusgti said:
Question. From some comments it seems people imagine it to be very hard to change bit coin for money. I thought there was a flourishing market in just selling them? Am I wrong on that, or is it just harder than it looks. Obviously offloading 80m dollars worth is going to have its own effects on value.
Also. I've read that people are surprised the FBI can confiscate bitcoin, but surely it's the same as confiscating any currency. They will take the proceeds of crime if they can prove that's where it came from. But could they take them further down the line? For instance, if I bought some bitcoins that had been used in a criminal way previously, could they be tracked through the serial numbers and taken from myself?
As per my previous response some months agoAlso. I've read that people are surprised the FBI can confiscate bitcoin, but surely it's the same as confiscating any currency. They will take the proceeds of crime if they can prove that's where it came from. But could they take them further down the line? For instance, if I bought some bitcoins that had been used in a criminal way previously, could they be tracked through the serial numbers and taken from myself?
hairykrishna said:
Art0ir said:
The FBI have seized his "wallet" containing the $80M but are unable to crack it. A bit like seizing a safe full of cash that can't be broken open...
Apart from the safe can be freely copied and having one copy doesn't prevent access to the money. 
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