Is the Government Sanctioning Bitcoin With Auction?

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June 13 (Bloomberg) -- The U.S. government will start selling one of the largest caches of bitcoins, seized last year from the illicit Silk Road marketplace, triggering a decline in the virtual currency’s price. Coin Apex co-founder Alex Waters, TradeHill CEO Jared Kenna and Bloomberg's Matt Miller comment on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Happen to be talking about.

Bitcoin enthusiast.

It is actually 170 4000 coins they seized from silk road.

So over $100 million.

Is that how much it is worth?

I imagine this helped generate some buzz for bitcoin.

It is the first time the federal government, i believe, has auctioned off bitcoin, which is pretty remarkable.

It's in store ago moment.

The way they are doing it is interesting -- it's a historical moment.

The way they are doing it is interesting.

They are doing and blocks so that one person cannot buy all of it and they are doing it in tranches.

I think overall they are doing it the right way, it's just weird -- weird that the feds are doing it.

The government is transacting in bitcoins.

If you're wondering about regulations or the way they view it, i guess they view it as a way to make money right now.

Hey.

I think it's an exciting milestone.

On the one hand, they want to regulate the stuff.

On the other hand, they are out there selling it for a profit.

What do you make of it?

I think it's great.

This is the kind of clarity that it corners have been looking at for a long time.

When assets are seized, they sell the coke instead of the ferrari.

That's what i have been thinking.

They will not turn around and sell you we'd, which is legal in a bunch of states now.

By the way, go on the marshals site.

The auction is due in 27th.

You can buy a bentley.

You can buy handbags and furs.

I saw a bunch of gucci stuff if you are interested.

It's not quite what i would've thought.

No, but it's cool.

They are definitely not selling coke or government secrets.

So basically, is this sort of sanctioning bitcoin?

In a way.

The government is saying this is a legal asset which we are converting to dollars to fund the government.

The next thing i wonder is if they are going to start selling weed.

It's the federal government, so they still won't do it.

You can get it other places, dude.

You have this much bitcoin coming onto the open market.

Is it going to have an effect on volatility?

I don't think it's going to have a huge impact.

There are probably funds picking it up or high net worth individuals that just want to sit on it.

I think you will see people pick it up and then try to promote the currency to raise the value.

The feds can't turn away from this one, right?

Once they have put this out there and said we will sell you bitcoin, that's effectively sanctioning it.

They have transacted in it.

I think a lot of other things have been sanctioning it lately.

Expedia, that's about as plain as you can get.

A college is going to take bitcoin for to which an.

With colleges that?

-- for tuition.

Which college is that?

Kings college.

It's a historical moment in this space.

It's fun.

Lots of new stuff every day.

This text has been automatically generated. It may not be 100% accurate.

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