6 ms·

No exact figures have been released, but based on other bidder's input, the assumptions are that his bid was well over the market price.

by mkngrm 12y ago

phantom784 12y ago
I'm surprised. What would be the reason to pay more than the market rate to get these coins?
- octo_t 12y ago
  getting a large block of bitcoins without crashing the price.
  - mapleoin 12y ago
    You mean inflating, not crashing.
  - viraptor 12y ago
    Did you mean without elevating the price? If you're buying a large quantity you'd fill the sell orders from the lowest price, going up. Or did you mean something else?
- pmorici 12y ago
  If he had bought that many on the open market it would have driven the price up by a large amount. Just go look at the current order book on Bitstamp.net one of the major exchanges. There are only about 5k coins on offer and many of those are for prices well above market. https://www.bitstamp.net/market/order_book/ https://www.bitstamp.net/market/order_book/
  - hueving 12y ago
    That's a terrible indicator. Unless the guy was a complete moron, he wouldn't just submit an order to the market to buy 30k coins at the market price. It would be trickled over the process of a couple of weeks. By your same logic, the coins he bought are hardly worth anything because if he tried to sell them it would just crash the price. There is only about 5k worth of buy orders in the book at the moment. In fact, if he paid above market price, it would be in his interest to make sure the number got 'leaked' to encourage rampant speculation to drive up the price beyond what he paid.
    - pmorici 12y ago
      Yeah, that's the point. You would have to go through a lot of work slowly buying coins over several weeks to get to 30k and even then it would affect the price. So it makes sense to bid a little high and get them all in one go.
      - hueving 12y ago
        What 'work'? It would be trivial to just keep setting small orders until you reach your target. With how volatile bitcoin is there is no reason to chase the price up.
  - haakon 12y ago
    They don't seem to show their whole order book on that page. If you look at the cumulative depth chart at http://bitcoinity.org/markets/bitstamp/USD http://bitcoinity.org/markets/bitstamp/USD, it currently shows over 12K BTC asks. Buying all that in one fell swoop would drive the price to over $4000 though.
- psychometry 12y ago
  Read the article. >Vaurum has launched trading platforms in emerging markets, and we will be partnering with Tim to leverage the pool of 30,000 bitcoins as a liquidity source
- n6mac41717 12y ago
  There are several reasons including: 1. He doesn't want to put $2M in any exchange or spread out over multiple exchanges to buy a large amount. 2. There is no cleaner accounting than to buy 30k in one swoop and from the USMS. 3. For very little risk, he either gets it or he doesn't.
dustcoin 12y ago
The bidders who announced they did not win specified bids in the $400-$500 range. Draper likely won with a higher, but still below market, bid.
- mkngrm 12y ago
  There were also bidders who put in bids much lower than that, how does that mean he wasn't above market? Do you have a link to those other bidders' claims?
  - gibybo 12y ago
    Because there is no losing bidder who claimed a near market price bid. All publicly claimed bids were far below market.
    - mkngrm 12y ago
      Until you have every losing bid, you can't make these claims. Can't reply, so I'll add it to this comment. As stated by others, the only way to purchase a large amount of bitcoins without jacking up the price is to do it in one large sum. By bidding over market price, he ensured that he would get this chunk of 30k coins without affecting the market.
      - canvia 12y ago
        But you can claim that it was well over market price? How does that work?
      - mbillie1 12y ago
        > No exact figures have been released, but based on other bidder's input, the assumptions are that his bid was well over the market price. So how is this justified?
        Phlarp 12y ago
        If this many bitcoins were purchased in a short time frame on the exchanges the price would shoot well over 1000 almost instantly.
rational-future 12y ago
What is the market price?
- mkngrm 12y ago
  Right around $650 right now. http://bitcoinity.org/markets http://bitcoinity.org/markets
  - LeoPanthera 12y ago
    I prefer this site: https://bitcoinaverage.com/#USD https://bitcoinaverage.com/#USD It takes into account multiple exchanges, not just one.

No exact figures have been released, but based on other bidder's input, the assumptions are that his bid was well over the market price.

by mkngrm 12y ago

No exact figures have been released, but based on other bidder's input, the assumptions are that his bid was well over the market price.

phantom784 12y ago

I'm surprised. What would be the reason to pay more than the market rate to get these coins?

octo_t 12y ago
getting a large block of bitcoins without crashing the price.
- mapleoin 12y ago
  You mean inflating, not crashing.
- viraptor 12y ago
  Did you mean without elevating the price? If you're buying a large quantity you'd fill the sell orders from the lowest price, going up. Or did you mean something else?
pmorici 12y ago
If he had bought that many on the open market it would have driven the price up by a large amount. Just go look at the current order book on Bitstamp.net one of the major exchanges. There are only about 5k coins on offer and many of those are for prices well above market. https://www.bitstamp.net/market/order_book/ https://www.bitstamp.net/market/order_book/
- hueving 12y ago
  That's a terrible indicator. Unless the guy was a complete moron, he wouldn't just submit an order to the market to buy 30k coins at the market price. It would be trickled over the process of a couple of weeks. By your same logic, the coins he bought are hardly worth anything because if he tried to sell them it would just crash the price. There is only about 5k worth of buy orders in the book at the moment. In fact, if he paid above market price, it would be in his interest to make sure the number got 'leaked' to encourage rampant speculation to drive up the price beyond what he paid.
  - pmorici 12y ago
    Yeah, that's the point. You would have to go through a lot of work slowly buying coins over several weeks to get to 30k and even then it would affect the price. So it makes sense to bid a little high and get them all in one go.
    - hueving 12y ago
      What 'work'? It would be trivial to just keep setting small orders until you reach your target. With how volatile bitcoin is there is no reason to chase the price up.
- haakon 12y ago
  They don't seem to show their whole order book on that page. If you look at the cumulative depth chart at http://bitcoinity.org/markets/bitstamp/USD http://bitcoinity.org/markets/bitstamp/USD, it currently shows over 12K BTC asks. Buying all that in one fell swoop would drive the price to over $4000 though.
psychometry 12y ago
Read the article. >Vaurum has launched trading platforms in emerging markets, and we will be partnering with Tim to leverage the pool of 30,000 bitcoins as a liquidity source
n6mac41717 12y ago
There are several reasons including: 1. He doesn't want to put $2M in any exchange or spread out over multiple exchanges to buy a large amount. 2. There is no cleaner accounting than to buy 30k in one swoop and from the USMS. 3. For very little risk, he either gets it or he doesn't.

dustcoin 12y ago

The bidders who announced they did not win specified bids in the $400-$500 range. Draper likely won with a higher, but still below market, bid.

mkngrm 12y ago
There were also bidders who put in bids much lower than that, how does that mean he wasn't above market? Do you have a link to those other bidders' claims?
- gibybo 12y ago
  Because there is no losing bidder who claimed a near market price bid. All publicly claimed bids were far below market.
  - mkngrm 12y ago
    Until you have every losing bid, you can't make these claims. Can't reply, so I'll add it to this comment. As stated by others, the only way to purchase a large amount of bitcoins without jacking up the price is to do it in one large sum. By bidding over market price, he ensured that he would get this chunk of 30k coins without affecting the market.
    - canvia 12y ago
      But you can claim that it was well over market price? How does that work?
    - mbillie1 12y ago
      > No exact figures have been released, but based on other bidder's input, the assumptions are that his bid was well over the market price. So how is this justified?
      - Phlarp 12y ago
        If this many bitcoins were purchased in a short time frame on the exchanges the price would shoot well over 1000 almost instantly.

rational-future 12y ago

What is the market price?

mkngrm 12y ago
Right around $650 right now. http://bitcoinity.org/markets http://bitcoinity.org/markets
- LeoPanthera 12y ago
  I prefer this site: https://bitcoinaverage.com/#USD https://bitcoinaverage.com/#USD It takes into account multiple exchanges, not just one.