haha so much for buyign coins under market value

they basically ran an auction within an auction.


iirc SM independently bid on the blocks themselves. they then solicited people to bid on thse blocks contingent on them winning.

https://twitter.com/alansilbert/stat...95027651346432

ummm wow, just wow if true. those 20m are the aggregate of losing bids, which is pretty funny and scary at the same time.

The thing is though, that $20 mil could have been looking to pick up BTC at half price. That doesn't mean there's even close to $20 mil waiting to jump in at market price.

This just shows how ****ing useless most people in the bitcoin community are.

It's pretty normal that auctions have way more demand than supply (e.g. every government bond auction even of Greece and the like) but in most cases the demand wants to pay a price way below what is the actual price in the end.
Every ****ing order book has gazillions dollars of demand that does not mean they are looking to buy - they just wanted to get a good deal.

Basically that guy is a ****ing moron and everyone who read his tweet and thought that made sense needs to stop investing and start learning about how a market and auctions work.

of course...

but it makes a clear statement of its demand

Everything is in demand if you can get it for less then what you can sell it for.

do you understand that he's barry silbert's brother who just announced that they didnt win any blocks? And the likelihood of him pulling 20m out of thin air is basically zero?

yeah, still on the

"15m gets you 51% of the network" boat i see.

At the time it did.

The network increased 25% over the last 2 weeks. How much money do you think was spent to do this?

You still dont understand how supply and demand works and neither does he. There are a lot of idiots in the market. Don't know who Barry Silbert is, doesn't matter, if he knows his stuff he will tell his brother that 20mio in demand is worth nothing if it does not hit supply.

im not going to pretend to know, but i can tell you that to produce 40nm chips at TSMC has cost asicminer/hashfast roughlt 100-150usd/TH. that is not including design or pcb board manufacture or cooling, or building a 10mw facility, or hiring sys admins, or hiring programmers. you can assume that 28nm is more costly.

do some more research next time before you talk about this plz. silbert bid on the bitcoins through his company.

Get your info straight. I'm done with you. According to you it's cheaper then I even thought!

Also, it is interesting that the Silbert dbag intentionally left out what they had bid. Why would he do this? Because he doesn't want everyone to know he lowballed and was trying to make a quick big buck on their new investors.

the strongest argument against hearn's "bitcoin is dying because there is no progress on the protocol" is the state of tcp/ip. despite the fact that it could probably be improved, tcp/ip hasn't been changed in forever and the internet is still flourishing.

wtf????

I believe Peter Todd used this exact analogy.

Hearn's vision of Bitcoin is not terribly mainstream (for the Bitcoin community). He used to work at Google, had BitcoinJ as a 20% project, as it would be useful for Android phones to have a way to use Bitcoin, and almost all his priorities involve either some type of "cleansing" to make it more legitimate, or to be able to use in POS physical locations. Lots of work in the Payment protocol, trusted entities, whitelists. Though he does have Lighthouse now, which is just a way to do something that was envisioned many years ago.

Dude you are an idiot, like a lot of people who are into bitcoins.

30'000 Bitcoins valued at 17.3M were auctioned.
If we a) expect the price of the auction was higher than the current bitcoins price (this seems to be the expectation here, no?) and b) know something about auctions, we know that we had a demand multiple of 2 or less.
Government debt routinely has a higher multiple than that.

The guy is full of **** and as someone said we dont even know how high his bid was.

Those 20M are obviously not in the market. Given that this was the first auction of bitcoins (at least at that amount), there were probably a lot of people who were probably bidding 30-90% of the current market price (I expect that number to be at 70-80% of unfulfilled demand probably even more). On top the bitcoins market is still avoided by big investors which leads me to believe that a lot of people were putting in bids for small lots at rather cheap prices.

You lack fundamental knowledge of how auctions and supply and demand works. Silbert can bid all he wants.

Has the order book been made public? Otherwise there is no ****ing way he could know how many people bid how much and how high real demand is.

And assuming that auction price > current market price the demand at the new price will be even lower.

Now, please show me in which area I need to do more research.

It is obvious that most of the people trying to get partials through SM all wanted the coins at a discount to the current prices on the exchanges. SM was taking a cut on top of that so not a big surprise they got outbid. Just means the coins were not sold at a significant discount. The fact he is not publishing his final bid is a bit strange unless they had to sign non disclosure agreements. Still very interesting to see the results.

If he had to sign an NDA, he would have said so. Those guys were just free rolling hard and don't want everyone to know they didn't get their bids filled because they low balled.

you are a bizarre individual.

I love people who take such an aggressive tone while being way out in left field. All the baseless assumptions while saying: "there is no ****ing way he could know.." Is pretty great too

the moment they were soliciting secondary buyers was the point at which it became obvious that they had no real intention on submitting a real bid. Either they thought they could arbitrage it to make money or they didnt have 20m to bid on it.

what;s clear now is that the coins didn't go well below market value such that anyone bidding who wanted to arbitrage them could make money off of it. If that's the case, 500-525 seems like the absolute floor for the coins. So for an auction of goods tied to illicit activity, it seems like the competition was strong.

what was bizarre is that he wrote all those things, and yet he has no argument or point of contention.

besides that barry silbert is an utter moron of course.