CNBC in the past pointed to how the U.S. government regularly holds auctions for their stockpile of Bitcoin, Ethereum, and Litecoin and other kinds of cryptocurrencies that it seizes.

Auctions started from the 2013 takedown of Silk Road, which used to be a dark web marketplace which traded in illegal goods.

Jarod Koopman, director of the Internal Revenue Service’s cybercrime unit in the past stated, “It could be 10 boats, 12 cars, and then one of the lots is X number of Bitcoin being auctioned,”

Pomp recently expressed: “The US government currently has more bitcoin on its balance sheet than any other known country in the world.”

The federal government’s relationship with Bitcoin is beginning to gain attention.  This is happening after the $3.6 BN in Bitcoin was seized in Bitfinex Hack.

COMMUNITY RESPONSE:  The funds will likely be returned to Bitfinex, but as a matter of national security – the government should buy billions more of bitcoin to hold forever.

Why should a centralized government be interested in decentralized money with the purpose of total freedom for the citizens? Makes no sense to me.

“Why should a centralized government be interested in decentralized commodities (gold, silver, copper) with the purpose of total freedom for the citizens? Makes no sense to me.” It’s a resource race out there.  Save your part or stay with nothing in hand.

Why don’t you address the real issue, which is the US GOV deciding to keep it all and not giving it to Bitfinex. Instead, they liquidate it all at once. We both know there isn’t enough liquidity volume to cover that amount of BTC being sold at once?

Peer 1:  But the whole reason people got into Bitcoin was because it was decentralized. Once governments start owning and manipulating it then you’re basically back where fiat left off.

Peer 2:  That isn’t how it works. Just by them owning, it doesn’t mean decentralization is compromised. The distributed ledger continues to operate as the distributed ledger.

Peer 3:  They’ll still have Satoshi Nakamoto’s original 750,000 to 1,100,000 Bitcoin

Peer 4:  Was that the original crypto that was seized by the FBI allegedly because it was involved in illegal Black Market transactions? Could’ve sworn exactly that about a decade ago but can’t recall everything. Is this what you mean? This might be true, but you need to offer evidence. Proof. Otherwise, you might as well also say that Satoshi is an Alien from planet X and he will be cashing in his stash on the next pass.

Wonder what they plan on doing with all this BTC they keep confiscating from criminals? Interesting to see how this BTC chess game plays out between the word governments as they fight for financial security.

The federal government is the largest holder of all Bitcoin due to recent seizures.