The Boring Bitcoin Report: Week of June 24

This week could pose a great buying opportunity for bitcoin
investors.  The US Marshal’s Bitcoin Auction will take place on Friday,
June 27, from 6:00 AM to 6:00 PM / ET and nearly 30,000 bitcoins are up
for grabs.  Since the announcement of this auction the price of bitcoin
has decreased and I expect the price to continue to decrease throughout
this week, due to speculators believing the sale will oversaturate the
market.

At the time of this writing, the price of bitcoin is at $590 on
CoinBase.  I predict a 20 – 32 percent price decline by Saturday, June
27, but I don’t expect the price to decrease below $400.

Harry Yeh of Binary Financial agrees:

We expect there to be some volatility and increased trading volume
this week.  There may also be some heavy selling pressure leading up to,
and on the day of the auction, causing the price to drop.”

Accredited investors also have the option of participating in
SecondMarket’s US Marshal’s Bitcoin Auction, which should be simpler
than direct participation in the government auction, but requires a 5
percent facilitation fee.  Order deadline is Thursday, June 26 at 12:00
PM / ET.

Here’s a summary of the not-so-boring bitcoin industry last week:

Government Initiatives:

Government Accidently Leaks Interested Auction Participants Emails

The US Marshal’s office accidently responded to an interested auction
participant’s email with about 30 other names CCed, revealing the
identity of all other people interested in bidding on the government’s
coins.  Since this email went out from the Marshal’s office, the CCed
interested participants began expressing serious security concerns,
while others took the opportunity to introduce themselves to some of the
bitcoin celebs on this list.

One person responded to the email chain saying, “wow, wow, wow did
the US Marshal just send a circular, well I suppose I’ll use this chance
to sell my band,” which was followed with a link to a music video.

Another person replied, “This just wreaks of incompetence.”

This auction is expected to be the most widely watched bitcoin sale
in history and the government has already given the media something to
write about.

Canada Passes Budget With Bitcoin Provisions

Last week Canada passed a budget implementation bill,
which included several provisions that will affect bitcoin commerce. 
According to attorney Christine Duhaime, the most important aspects
include anti-money laundering reporting requirements that look onerous
and could hinder bitcoin businesses in Canada.  The anti-money
laundering laws were first largely written in the 1970’s, before the
internet.  If Canada is trying to fit this transformative technology
into a box that was built for brick and mortar financial institutions,
it simply does not make sense.

Bitcoin Banned in Bolivia

With intentions to protect the purchasing power of the boliviano, the
country’s central bank says it is illegal to use any kind of currency
that is not issued and controlled by a government.  Bolivia is the first
country to issue such a ban.  However it is not clear how the country
plans to enforce this, since it would be difficult to do so unless they
turn off the country’s internet access.

The ban may be used to stop the rich from hiding their wealth in
bitcoin.  The effect probably will not have much impact on the bitcoin
market price because Bolivia is not a major player in this space.  As
one of the poorest countries in Latin America, bitcoin could have helped
raise the standard of living in Bolivia by bringing basic financial
services to the under-banked.

Industry Analysis:

ESPN Welcomes the Bitcoin Bowl

BitPay announced last week that they are sponsoring the annual
college football postseason game played in St. Petersburg, FL.  Starting
December 26, 2014 the bowl will now be called the Bitcoin St.
Petersburg Bowl.  BitPay is the title sponsor for the next three years
through the 2016 game.

Tony Gallippi, BitPay Executive Chairman said, “Our goal is to
continue to move bitcoin into the mainstream, and sponsoring the St.
Petersburg Bowl offers us that opportunity.”

It is very strategic and honest of BitPay to use ‘bitcoin’ as the
title sponsor as opposed to promoting their own brand, said Matthew
Roszak, a Bitcoin venture capitalist, “the industry is in a thoughtful
and aggressive ‘educate the masses phase’ and this is a perfect
example.”

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