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US Marshals Auctioned off $4m Worth of Bitcoin This Week

On the darknet, Bitcoin is a rather commonly accepted payment method in this day and age. Because of law enforcement agencies cracking down on these users, they have also confiscated a fair amount of Bitcoin in the process. Roughly $4m worth of BTC has been auctioned off on November 5.

Another US Marshal Bitcoin Auction

One has to commend the US Marshals and other law enforcement agencies for bringing an end to illegal darknet sales. These underground marketplaces allow anyone in the world to buy or sell any good or service one can think of. More often than not, those services rendered are completely illegal, which means law enforcement needs to intervene at the appropriate time.

In recent years, numerous darknet vendors have been arrested. While the arrest itself is the “big victory” for law enforcement, they also succeed in confiscating assets associated with this illegal operation. In most cases, either drugs or firearms are seized. However, the US Marshals also confiscate Bitcoin wallets on a regular basis. That is only normal, as Bitcoin remains the most popular payment method on the darknet.

To put this in perspective, the US Marshals have confiscated over $4m worth of Bitcoin in recent months. As is usually the case, that funds cannot be kept in their custody for an extended period of time. As such, the US Marshals auctioned off these Bitcoin holdings on November 5 to the highest bidder.

It is not the first time such an auction takes place. When Silk Road was shut down, the confiscated Bitcoin assets were auctioned off to the highest bidder. At that time, Tim Draper began paying a lot of attention to Bitcoin, as he managed to buy significant quantities for very low prices. It is certainly possible history will repeat itself in this regard.

Similar to previous Bitcoin auctions, interested parties can partake through “sealed bids”. This will ensure all information is kept confidential at all times. One downside is how the bidders are unable to change their bid after submitting it. Those who partake will also need to deposit $200,00 on beforehand. Those who don’t win the auction will receive their deposit back afterward.

Earlier this year, another Bitcoin auction by the US Marshals netted over $50m. That was during a time when one Bitcoin was valued at over $15,000, over twice the value it has today. As such, it seems safe to assume nearly 7,000 BTC will be auctioned off next week. How much bidders will eventually pay for this purse, remains to be determined.

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Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

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