The U.S. government has announced that it will auction bitcoins for three days. The auction began yesterday and will be conducted online. GSA Auctions is responsible for conducting the auction as a representative of the U.S. government and liquidating surplus assets and equipment owned by the federal government.
The bitcoins will be sold in five lots at an online event titled Fall for Cryptocurrency. The auctions will take place over three days from Tuesday, Oct. 26 through Thursday, Oct. 28.
When the auction ends, the U.S. government will sell about $300,000 worth of bitcoins, 4.94 BTC, to the highest bidder.
The 4.94 BTC will be auctioned in five different lots of 1.5, 1.25, 1, 0.75, and 0.44 BTC.
By placing a bid on this sale, the successful bidder understands that the transfer of the Bitcoin will include a fee and accepts that the Network Transaction Fee will reduce the total amount of the Bitcoin that will be transferred by the amount of the Network Transaction Fee.
The Successful Bidder will also be required to complete a "Bitcoin End-Use Certificate."
How Will the Auction Take Place?
The auction will include five lots with starting bids all under market price for the bitcoins. All auctions are to be carried out in Atlantan Georgia and the lots will include varying volumes of bitcoins.
The first lot will feature the highest volume with 1.50 BTC with a starting bid of $40,809, more than $20,000 less than the market price.
Other lots will include a decreased volume of bitcoins to varying degrees. Starting bids for each lot will also decrease for the lots with smaller volumes.
The second lot will see 1.25 BTC being auctioned off at a starting bid of $34,008. Next in line is the third lot with 1 BTC with its starting bid placed at $27,206. 0.75 will be put up for auction at a starting bid of $20,405. And lastly, the fifth lot will see 0.44 BTC auctioned off by the U.S. government at a starting bid of $11,971.
Who is it GSA Auction?
US government auctions are conducted by GSA Auctions, a service of the US General Services Administration (GSA) that acts as the federal government's online clearinghouse for owned surplus assets and equipment. federal.
(GSA) serves as the federal government's online clearinghouse for excess federally owned assets and equipment.
Assets auctioned by the GSA are generally sold at a reduced price. In April, the government agency sold 9.45 BTC($ 520,000) to $ 487,000. Buyers were able to earn more than 6% due to its below-market cost.
It can be argued that privacy is the real trade-off in this business. The buyer spends fewer dollars at the cost of their personal information, as buying BTC from the government is revealing key personal information.
GSAAuctions is only accepting credit cards and wire transfer payments.