At the time of writing this article, bitcoin price has relatively stayed the same throughout yesterday. It is hovering around $241 which was overwhelming for bitcoin enthusiasts. After all there were no drops of any kind, and considering all the bad news lately regarding hackings, cyberattacks, etc., a more negative outcome could have probably been expected.
Now the question is being raised whether or not the third US Marshals bitcoin auction involving an additional 50,000 of Ross Ulbricht’s bitcoins will enable the price to go up a bit more. Certainly, there is evidence to suggest so. Auctions such as these can raise the value of bitcoin. If one were to look at the previous auctions and focus less on the action and more on what occurred with bitcoin itself, they would notice that the value has encountered something of a small surge each time. Right now, when bitcoin is fairly cheap (or at least cheaper than it was a year ago or even six months ago), this might be a sign for many enthusiasts who are looking to get in on the action and place a few bids. Why bid on something expensive? Bid when the value is down and earn some money in the end.
But I must ask… Even if the Silk Road bitcoin auction does manage to push the price up a bit, how long will that price bump last? A few days? A week? A month? In other words, how long will the price move upwards before falling again? I’m not aiming to sound like a cynic. I ask because this is usually the routine bitcoin has taken, lately. It experiences a short price bump before something drastic occurs in the market to make it fall back down again.
While there is probably no control over this, it is known that following the end of this auction, the US Marshals Service will still possess one final stash of 50,000 bitcoins taken from the Silk Road seizure. Maybe it would be best to hold that fourth (and possibly final) auction right away… To ensure that the value stays up for a good, long time… Many of us are getting tired of those “early sinks.”
