Bitcoin Bidders Underperform at Second Silk Road Auction

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Bitcoin Bidders Underperform at Second Silk Road Auction

The second Silk Road bitcoin auction held by the US Marshals Service has come to a close, and for a large bundle of bitcoins looking for a new owner, the event has yielded some disappointing results.
The first auction took place in June of this year following the arrest of Silk Road operator Ross Ulbricht.  The opportunity to bid on 30,000 of the once anonymous drug leader’s personal bitcoins seemed too good to pass up for over 40 different digital currency enthusiasts, who placed an approximate 63 bids.  According to the USMS, the second auction witnessed a massive drop in participation, with only 11 registered bidders placing a mere 27 bids, many of which were under-market.
Has bitcoin suddenly lost its popularity?  Not likely.  June’s auction stayed open for a hefty 12 hours of bidding time.  The second only remained open for six, and many are blaming the heavy decrease in registered bidders on the shortened time span.  Either way, the auction seemed to have little effect on bitcoin’s price, with the currency fluctuating between the $360 and $370 range during bidding hours.
Despite the low turnout, the US Marshals Service still holds over 93,000 bitcoins set to be auctioned off in the coming months, so any lackluster bidding could only mean that potential buyers are simply waiting for the right moment to pounce.
Among the most recent auction’s participants were digital currency conglomerates Bitcoin Reserve, Bitcoin Investment Trust and Binary Financial.  Future auction dates will undoubtedly be announced later on, so those interested are advised to keep their eyes and ears open for more information.
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