U.S. Government Sells 9.45 BTC At Significant Market Discount

Surprisingly, 9.45 BTC auctioned off by a U.S. government agency was purchased at a market discount.

The U.S. government sold 9.45 BTC during a four-day auction that closed earlier this week, with the bitcoin being purchased at a notable discount compared to market prices.

The auction was performed by GSA Auctions, a service of the United States General Service Administration (GSA) that functions as the federal government’s online clearinghouse for surplus, federally-owned assets and equipment.

“Cryptocurrency is certainly some of the most unique items to ever come up for public sale on our GSA Auctions platform, but the excitement from our bidders is undeniable,” said Thomas Meiron, regional commissioner with GSA’s Federal Acquisition Service, according to a release about the recent bitcoin auction. “It goes without saying that you never know what you’re going to find on GSA Auctions.”

The 11 lots auctioned amounted to 9.45 BTC, which would have a market value based on listed cryptocurrency exchange prices of around $520,000 at the time of this writing. But, according to The Block, the GSA only brought in a total of $487,000, meaning that the government-furnished bitcoin was sold at a significant discount.

Fungibility is a fundamental property of Bitcoin. It ensures that one unspent transaction output (UTXO), commonly referred to as a “coin,” can be exchanged for another coin. This property is essential for bitcoin to function as a suitable medium of exchange. Bitcoin’s fungibility is occasionally put to the test, however, as some exchanges have been rejecting BTC of doubtful origin, because it was potentially used for illegal purposes.

Therefore, it can be considered strange that government-sold BTC would be available at a discount, as opposed to a premium, since it can be viewed as tacitly endorsed by U.S. regulators. GSA has not disclosed the specific origin of the bitcoin it has auctioned.

Article First Published on Bitcoin Magazine

Related posts
Federal ReserveMarketsStanley DruckenmillerUSD

Legendary Investor Stanley Druckenmiller: USD Will Lose World Reserve Currency Status

In criticisms of Federal Reserve actions, legendary investor Stanley Druckenmiller highlighted the case for bitcoin to replace the dollar. In an interview this morning on CNBC’s “Squawk Box,” legendary investor Stanley Druckenmiller gave his view on the dollar’s stance as…
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTMarketsNewsxbtusd

The Bitcoin Bull Run Is Far From Over – Here’s What’s Following

Bitcoin entered the month of May above $50,000 but has been range-bound below the $60,000 price mark since the 18th of April. Bitcoin hit a daily high of $59,464 on Sunday, this is the highest price the leading cryptocurrency has…
Bitcoin FuturesCME GroupMarkets

More Than 100,000 CME Micro Bitcoin Futures Trade In First Week

CME Group saw more than 100,000 micro bitcoin futures traded in the first week of its offering, demonstrating appetite for bitcoin products. Major derivatives marketplace CME Group has seen more than 100,000 micro bitcoin futures traded in the first six…