Ohio DoJ Auctions 500 BTC for $19.2 million. Demand is Real!

US government has seized a lot of bitcoin over the years. So much that is has sales amassing over $150 million since 2014. Recently another auction of 500 bitcoins was open and demand for it was high enough that it average out to be around $36k a BTC. What these auctions are telling us is that the public that is aware of the government selling these crypto is able to sell them at higher than market price. The supply has been dwindling and as more BTC gets mined it is harder to mint new ones and there are less of them.

The end result is real demand for BTC continue to rise. So much so that when ever the public gets an opportunity to bid for actual cryptocurrency like BTC they do it with hands over fists. Similar to the real world of gold. Although gold prices have weaken since the start of 2021 the purchase of real hard asset gold is in such high demand that actual gold have a premium to it.

Conclusions

Demand for the BTC in the auction was high and please be aware there is an even bigger one coming up.

The U.S. government also added 69,370 BTC in Nov. 2020, currently worth over $2.3 billion, seized from an unnamed individual linked to the infamous Silk Road case. The auction date for the massive sale is yet to be decided.

If BTC gets back to all time highs we are talking a sale of over $5 billion in revenue for the government just on that +69k BTC. What will be interesting is to see how the auction plays out as I expect the demand for real BTC will be high therefore a premium will be tacked on top of the actual current price of BTC traded in markets.

Let us all keep hodling our cryptos for better days ahead. Thanks for reading.