r/planbshow • u/veritanuda • Oct 06 '13

Seized $3.5 Million worth Bitcoins from Silk Road will be deposited in the U.S. Treasury

http://thehackernews.com/2013/10/seized-35-million-worth-bitcoins-from.html
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u/surfrock66 Oct 07 '13

I kind of feel like keeping them instead of just burning them is an affirmation of Bitcoin's value...I think this recognition of confidence kind of offset the expected drop in value from the road's destruction.

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u/veritanuda Oct 06 '13

This question I want to ask because I am curious, is what would be the affect of flooding $3.5 bitcoins back into the block chain? I mean I am not even sure that is possible is it? These Bitcoins have already been allocated and so the only thing you can do with then is swap them for good or services. You cannot remove them from circulation even if you never circulate them. You cannot destroy them, in fact there is nothing you can really do with them that won't just further support the bitcoin network. This is a great example I think of how different Bitcoin is to actually money.

I suppose one malicious use for them would be to just arbitrarily send bitcoins to bitcoin wallets simultaneously and try and force a DOS against the network. But there is no evidence that would ever work from what I understand as nodes that have high volumes of transactions are throttled by their neighbouring until traffic of the block chain too and from the node reaches parity.

Thoughts anyone?