In recent news, there was an extremely profitable opportunity by the U.S. government upon seizing $48 million it took from the bitcoin holdings of one of the dark web marketplaces.
The U.S. government managed to take around 144,336 bitcoins from the illegal activities conducted by the Sillk Road found on Ross William Ulbricht’s laptop.
The release on Friday came out stating that “these bitcoins were ultimately sold by the United States Marshals Service pursuant to Court order for $48,238,116.”
This means that the U.S. decided to sell the bitcoins for around $334 each. Anyone who knows the bitcoin market as of the past few months knows that the current price has fluctuated between $3,000 and $5,000. This means that if they held onto the coins, they could have had the opportunity to make around $600 million more than they made.
Given that the Justice Department is not in the business for investing and ultimately making money, it is not a large concern to them to hold onto the bitcoins.
The market on cryptocurrencies has been extremely volatile recently leading the U.S. to have the best interest of unloading them as soon as possible. With the market on cryptocurrencies having many ties to not only the black market, but criminal activities as a whole, many continue to view it as a sketchy market. In recent times, with seizures like this, the market on cryptocurrency can start to become delegitimized which can lead investors to withdraw their money.
The market is relatively new and has the potential to be extremely large and possibly even take over a large part of our current financial system, but only if there is some sort of legitimization and only if the black market that many associate with the currency is slowed down.